Michigan State Income Tax Withholding Information
State Abbreviation: |
MI |
State Tax Withholding State Code: |
26 |
Acceptable Exemption Form: |
MI-W4 |
Basis for Withholding: |
State Exemptions |
Acceptable Exemption Data: |
0/Number of Allowances |
TSP Deferred: |
Yes |
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - Enter 0 (zero) Second or Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4). |
Additional Information: |
None |
Additional Resources: |
Withholding Formula (Effective Pay Period 06, 2014)
- 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 (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages times 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 = $4,000 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.