What is Michigan's income tax rate for self-employed workers in 2026?

A flat 4.25% state rate after the personal exemption, plus a city income tax if you live in one of the 24 taxing cities — 2.4% for Detroit residents, 1.5% in Grand Rapids, 1% in most others.

Does Detroit tax self-employment income?

Yes. Detroit residents pay a 2.4% city income tax on net self-employment profit, filed on a separate City of Detroit return with its own quarterly estimates.

When are Michigan quarterly estimated taxes due?

Michigan MI-1040ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027. Estimates are required if you expect to owe more than $500 of Michigan tax.

How much should a Michigan gig worker set aside for taxes?

Around 25% to 30% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 4.25% state rate and any city tax combined.

When is the Detroit city tax return due?

April 30, 2027 for the 2026 tax year — two weeks after the state and federal deadlines, and a date Detroit freelancers miss every year.

Does the mileage deduction reduce Michigan tax?

Yes. Michigan starts from federal adjusted gross income, so the $0.70 per business mile 2026 rate reduces your state taxable income automatically.

Michigan Self-Employed Tax Calculator

Federal income tax + 15.3% SE tax + Michigan's flat 4.25% state tax on 2026 1099 income — plus the city income tax 24 Michigan cities charge.

Michigan's flat 4.25% is only part of the picture. If you live in Detroit, Grand Rapids, Lansing, Flint or one of the other taxing cities, you also file a separate city return — 2.4% in Detroit, 1.5% in Grand Rapids, 1% in most others. City returns are due April 30, two weeks after the state.

Self-employed income & expenses

Estimate federal + SE + state tax for the 2026 tax year in one pass.

Annual 1099 income

Business miles driven

Other business expenses

Self-employed health insurance

Retirement contributions (SEP / Solo 401k)

W-2 income (if any)

Federal tax withheld

Filing status

State

Estimated total tax bill

$12,307

Refund / owed

-$12,307

Effective rate

20.5%

Detailed breakdown

Mileage deduction$5,600

Total business expenses$8,100

Net self-employment income$51,900

Self-employment tax (15.3%)$7,333

½ SE deduction (above-the-line)$3,667

Adjusted gross income$48,233

Taxable income$32,133

Federal income tax$3,608

State tax (est.)$1,366

Quarterly estimated payment$2,909

Marginal rate16.3%

Michigan city tax rates for self-employed workers (2026)

Michigan taxes income at a flat 4.25%, and 24 Michigan cities — including Detroit, Grand Rapids, Lansing and Flint — levy their own city income tax, typically 1% for residents and 0.5% for nonresidents (Detroit is 2.4%).

Local and state tax rates for self-employed residents of major Michigan cities in 2026
City	Local rate	State rate	What gig workers should know
Detroit	2.4% resident city income tax	4.25% flat (2026)	The highest city income tax in Michigan; file a City of Detroit return alongside MI-1040.
Grand Rapids	1.5% resident / 0.75% nonresident	4.25% flat	Applies to net self-employment profit, not just wages.
Lansing	1% resident / 0.5% nonresident	4.25% flat	Same structure as most Michigan income-tax cities.
Flint	1% resident / 0.5% nonresident	4.25% flat	City return due April 30, not April 15.
Ann Arbor	No city income tax	4.25% flat	No local income layer — state tax only.

Michigan local and state filing deadlines

Q1 MI Form MI-1040ESApril 15, 2026
Required if you expect to owe more than $500 of Michigan tax.
Q2 MI Form MI-1040ESJune 15, 2026
Second state installment.
Q3 MI Form MI-1040ESSeptember 15, 2026
Third installment.
Q4 MI Form MI-1040ESJanuary 15, 2027
Final installment for the 2026 year.
MI Form MI-1040 returnApril 15, 2027
Federal extension extends Michigan too, but payment is still due in April.
City income tax returns (Detroit, etc.)April 30, 2027
City returns have their own forms and a slightly later deadline than the state.
Q1 federal 1040-ESApril 15, 2026
Covers income earned January 1 – March 31.
Q2 federal 1040-ESJune 15, 2026
Covers April 1 – May 31.
Q3 federal 1040-ESSeptember 15, 2026
Covers June 1 – August 31.
Q4 federal 1040-ESJanuary 15, 2027
Covers September 1 – December 31.

Michigan's 4.25% flat rate applies after a personal exemption, and city income taxes stack on top for residents of the 24 taxing cities.
Michigan follows federal AGI, so mileage, phone and home office deductions reduce your state bill — but city returns have their own adjustment rules.
Self-employed Detroit residents also owe the city's estimated payments quarterly, separate from MI-1040ES.

Frequently asked questions

What is Michigan's income tax rate for self-employed workers in 2026?: A flat 4.25% state rate after the personal exemption, plus a city income tax if you live in one of the 24 taxing cities — 2.4% for Detroit residents, 1.5% in Grand Rapids, 1% in most others.
Does Detroit tax self-employment income?: Yes. Detroit residents pay a 2.4% city income tax on net self-employment profit, filed on a separate City of Detroit return with its own quarterly estimates.
When are Michigan quarterly estimated taxes due?: Michigan MI-1040ES payments follow the federal calendar: April 15, June 15, September 15, 2026 and January 15, 2027. Estimates are required if you expect to owe more than $500 of Michigan tax.
How much should a Michigan gig worker set aside for taxes?: Around 25% to 30% of net profit typically covers federal income tax, the 15.3% self-employment tax, the 4.25% state rate and any city tax combined.
When is the Detroit city tax return due?: April 30, 2027 for the 2026 tax year — two weeks after the state and federal deadlines, and a date Detroit freelancers miss every year.
Does the mileage deduction reduce Michigan tax?: Yes. Michigan starts from federal adjusted gross income, so the $0.70 per business mile 2026 rate reduces your state taxable income automatically.