Tax rate used in calculating Michigan state tax for year 2021
State Abbreviation: |
MI
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State Tax Withholding State Code: |
26
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Acceptable Exemption Form: |
MI-W4
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Basis For Withholding: |
State Exemptions
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Acceptable Exemption Data: |
0/Number of Exemptions
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TSP Deferred: |
Yes
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Special Coding: |
Determine the Total Number Of Allowances field as follows:
First Position - Enter 0 (zero)
Second and Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4).
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Additional Information: |
None
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Withholding Formula >(Michigan Effective 2021)
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- Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
- Determine the exemption allowance by applying the following guideline and subtract this amount from the gross annual wages to compute the taxable income.
Exemption Allowance = >$4,900< x Number of (Personal/Dependency) Exemptions
- Multiply the result of step 5 by 4.25 percent to obtain the amount of annual Michigan tax withholding.
- Divide the annual Michigan tax withholding by 26 to obtain the biweekly Michigan tax withholding.
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