Local payroll and employment requirements that differ from or exceed Michigan state law
Last updated: January 2025
Michigan state minimum wage. Detroit follows state rate. Expected to increase in 2025.
Michigan Paid Medical Leave Act applies to employers with 50+ employees. Smaller employers exempt.
Detroit residents pay 2.4% on all taxable income including wages, salaries, and self-employment income. Highest city income tax rate in Michigan.
Non-residents working in Detroit pay 1.2% on wages and compensation earned in the city. Exactly half the resident rate.
Corporations with nexus in Detroit pay 2% on net income attributable to Detroit operations.
Tax on utility bills for Detroit users. Employers may see this on business utility costs.
Employers must withhold Detroit income tax from all employees working in Detroit. File quarterly with Michigan Treasury.
Businesses in designated Renaissance Zones may be exempt from Detroit income tax for specified periods.
Detroit income tax is based on where work is physically performed. Remote workers may not be subject to Detroit tax if working outside city limits.
These local rules apply in addition to Michigan state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.