Self-employment tax in Michigan
Michigan taxes self-employed income at a flat 4.25% for 2026, with a $5,900 personal exemption for 2026 and no general standard deduction - plus city income tax if you live or work in one of 24 Michigan cities.
What a Michigan freelancer owes
- Federal self-employment tax of 15.3% (12.4% Social Security + 2.9% Medicare).
- Federal income tax on your net profit (after the deductible half of SE tax).
- Michigan income tax at a flat 4.25% for 2026, after the $5,900 personal exemption for 2026.
Estimate your Michigan taxes
Free 1099 self-employment tax calculator — add Michigan's 4.25% flat state rate. No sign-up.
Enter Michigan's 4.25% flat in the State Tax field for a full estimate.
States with no income tax are set to 0%. Estimate only — adjust for local taxes.
Estimates use 2026 US federal figures (IRS Rev. Proc. 2025-32): self-employment tax of 15.3% (12.4% Social Security up to the $184,500 wage base + 2.9% Medicare) plus federal income tax on your net profit after the standard deduction. State and local taxes are only included if you set a state rate above. Simplified estimate for planning only — not tax advice.
Guide: Self-employment tax in Michigan — flat tax plus city tax
Michigan taxes self-employed income at one flat rate, but the city where you live or work can add a second bill. The state rate is 4.25% for 2026 (2025 was also 4.25%), and the personal exemption for 2026 is $5,900 (2025: $5,800; there was also a 2025 special exemption of $3,400). Michigan has no general standard deduction: the $20,000 single / $40,000 joint Michigan Standard Deduction is a retirement provision for taxpayers age 67 and older, not a universal deduction.
The federal layer is the same in every state. Self-employment tax is 15.3% (12.4% Social Security + 2.9% Medicare) on 92.35% of your net profit, and it applies once your net earnings reach $400. The Social Security wage base is $184,500 for 2026; Medicare is uncapped. The deduction for half of your SE tax lowers your income tax only — it does not lower your net earnings or your SE tax.
The local layer is where Michigan gets interesting: 24 cities levy their own income taxes. The Treasury administers Detroit's tax: Detroit residents pay 2.4% and nonresidents 1.2% for 2026, with a $600 per year exemption. If you live or work in one of the other 23 cities, check that city's rate separately — it stacks on top of the 4.25% state rate. Pass-through owners should also note the elective Flow-Through Entity (FTE) Tax, charged at 4.25%.
Worked example. Take a single freelancer with $60,000 of net profit and no city tax. Federal SE tax is $60,000 x 92.35% = $55,410, x 15.3% = $8,477.73. Michigan tax is ($60,000 - $5,900) x 4.25% = $54,100 x 4.25% = $2,299.25. A Detroit resident would add city tax at 2.4% on top (before the $600 exemption).
Michigan estimated payments use Form MI-1040ES, due April 15, June 15, and September 15, 2026, and January 15, 2027. Keep every receipt and invoice in MoneyFeed via WhatsApp, so your net profit is ready when each estimate comes due — and so you can prove which city your income belongs to.
FAQ
A flat 4.25% for 2026 (2025 was also 4.25%), on top of federal self-employment and income tax, after the personal exemption.
No general one. The personal exemption for 2026 is $5,900 (2025: $5,800, plus a 2025 special exemption of $3,400). The $20,000 single / $40,000 joint Michigan Standard Deduction is a retirement provision for taxpayers age 67 and older — it is not a universal deduction.
Yes, in 24 cities. The Treasury administers Detroit's tax: residents pay 2.4% and nonresidents 1.2% for 2026, with a $600 per year exemption. Other cities set their own rates, so check the city where you live or work.
An elective tax for pass-through entities, charged at 4.25%. It is an election for the entity, not something a sole proprietor pays by default.
Form MI-1040ES installments are due April 15, June 15, and September 15, 2026, and January 15, 2027.
Michigan freelancer tax — FAQ
Do freelancers pay state income tax in Michigan?
Yes. Michigan taxes self-employment income at a flat 4.25% for 2026 (the same as 2025), on top of federal taxes, after the $5,900 personal exemption for 2026.
Do I owe city tax as a Michigan freelancer?
Possibly. Twenty-four Michigan cities levy income taxes; Detroit tax is administered by the Treasury at 2.4% for residents and 1.2% for nonresidents in 2026, with a $600 exemption per year.
How do I estimate my Michigan 1099 taxes?
Use the free MoneyFeed 1099 calculator for the federal estimate, then add Michigan tax at 4.25% - and your city rate if you are in a city-tax city.
Figures are 2026 headline guidance for freelancers and the self-employed, not tax advice. Check current IRS and state rules or a CPA for your situation.