What is Detroit's income tax rate for 2026?
Detroit residents pay 2.4% on gross compensation. Non-residents who work in Detroit but live elsewhere pay half that: 1.2%. This calculator estimates the resident rate; a commuter's actual withholding is the lower non-resident figure.
Does Detroit give a personal exemption?
Yes. Detroit exempts $600 per person claimed -- yourself, a spouse on a joint return, and each dependent -- before applying the 2.4% (or 1.2% non-resident) rate, the same exemption structure used on the city's CF-1040 return.
Why is Detroit's non-resident rate exactly half the resident rate?
Michigan's uniform city income tax ordinance (MCL 141.503(2)) sets Detroit's non-resident rate at 50% of the resident rate by statute -- not a coincidence or an estimate, but the actual legal ceiling, which Detroit's own withholding tables confirm it charges in full.