Self-Employment Tax in Michigan (2026)
Freelancing in Michigan? You'll owe the 15.3% federal self-employment tax plus federal income tax, plus Michigan's income tax (flat 4.25%). Here's how it breaks down.
Federal self-employment tax (the same in every state)
No matter where you live, self-employment income is hit with 15.3% SE tax — 12.4% for Social Security (up to the annual wage base) and 2.9% for Medicare — on 92.35% of your net profit. You also pay federal income tax at your marginal rate. Half of the SE tax is deductible. See exactly how it's calculated in our self-employment tax guide.
Michigan state income tax on freelance income
Michigan has a flat 4.25% state income tax, plus some cities levy a local income tax. This state tax stacks on top of the federal SE and income tax, so budget for all three.
State rates shown are approximate for 2026 — several states are phasing rates up or down, so confirm the current rate with the Michigan Department of Revenue.
Estimate what you owe. The Self-Employment Tax Calculator computes your federal SE tax and income tax exactly, and lets you add Michigan's state rate to see your total set-aside and quarterly payments.
How much to set aside in Michigan
Plan on roughly 30–35% of your net profit for taxes as a freelancer in Michigan, then confirm your real number with the calculator. Move that percentage into a separate account every time a client pays you, and send it in through quarterly estimated payments to avoid the IRS underpayment penalty.
General information for Michigan, not tax advice. Confirm your specifics with a CPA.
Frequently asked questions
How much self-employment tax do I pay in Michigan?
The federal self-employment tax is 15.3% everywhere, including Michigan — 12.4% Social Security (up to the wage base) plus 2.9% Medicare. That's on top of federal income tax and Michigan state income tax (flat 4.25%).
Does Michigan have a state income tax on freelance income?
Michigan has a flat 4.25% state income tax, plus some cities levy a local income tax.
How much should a freelancer in Michigan set aside for taxes?
A common rule of thumb is 25–30% of net profit, but Michigan's state income tax pushes the total higher. Use the Self-Employment Tax Calculator to get your exact set-aside from your profit and filing status.