The 2025 MI withholding rate is 4.25% and the personal exemption is $5,800.
The Michigan Department of Treasury has published the revised income tax withholding tables effective for the year 2025 with the following payroll periods: weekly, or 52 pay periods; biweekly, or 26 pay periods; semi-monthly, or 24 pay periods; and monthly, or 12 pay periods.
For a Michigan worker earning the state’s average annual income of $46,940 (or $3,912 monthly) and claiming one exemption, the Michigan state income tax withholding would be calculated as follows: The taxable income ($46,940 minus the $5,800 exemption) is multiplied by the 4.25% tax rate, resulting in an annual withholding of $1,748.40, or approximately $145.70 per month.
The new Michigan withholding tables will be included inside our 2025 Payroll Mate software. Please make sure to install the new updates on or before January 1st 2025.