What is minimum wage in Michigan in 2026?
Michigan's minimum wage is $13.73 an hour in 2026, effective January 1, 2026[leo]. The state law covers employers with two or more employees. The U.S. Department of Labor's table of state rates, updated November 5, 2026, lists the same $13.73 and the scheduled $15.00 for 2027[dol1].
| Year | Hourly minimum | Source |
|---|---|---|
| 2022 | $9.87 | US DOL history table |
| 2023 | $10.10 | US DOL history table |
| 2024 | $10.33 | US DOL history table |
| 2026 | $13.73 | US DOL state table |
| 2027 | $15.00 (scheduled) | US DOL state table |
The 2022–2024 figures come from the Labor Department's history of state rates[dol3]. Between the 2024 rate of $10.33 and the 2026 rate of $13.73 sits 2025. Michigan's own 2025 notices could not be loaded to confirm that year's figures, so 2025 is left out of the table.
Michigan tipped minimum wage: $5.49 in 2026
A tipped employee in Michigan can be paid a cash wage of $5.49 an hour in 2026, as long as tips add at least $8.24 an hour. Together they reach the $13.73 minimum[dol2]. The cash wage is about 40% of the full rate in 2026.
That share is set to grow. According to the Labor Department's summary of Michigan law, the tipped cash wage rises every year until it reaches 50% of the state minimum wage in 2031[dol2]. The exact dollar amounts after 2027 depend on the formula increases to the full rate, which have not been calculated yet.
The lower cash wage only works when tips actually fill the gap. Under the federal rules, an employer may use a tipped cash wage only if the employee keeps all tips and the tips plus cash wage reach the minimum[dol4].
Michigan minimum wage 2027: $15.00, then a yearly formula
On January 1, 2027 Michigan's rate goes to $15.00 an hour, a raise of $1.27. After that, the Department of Labor's summary says the rate will be adjusted annually by formula[dol1]. The size of the 2028 increase is not known yet.
The 2027 step changes full-time pay as follows:
- Before tax: from $28,558 to $31,200 a year (2,080 hours).
- After withholding: a single filer keeps about $26,174 at $15.00, compared with $24,164 at $13.73, using the 2026 tables in the calculator below.
Overtime is time and a half after 40 hours in a workweek under the federal rule[flsa]. That is $20.60 an hour at $13.73 (rounded) and $22.50 at $15.00.
Who can pay less. Michigan's law applies to employers with two or more employees[dol1]. A one-person employer that is covered by the federal Fair Labor Standards Act still owes at least the federal $7.25.
Michigan minimum wage after taxes
A full-time job at $13.73 an hour is $28,558 a year before tax (2,080 hours). After federal income tax, Social Security, Medicare and Michigan withholding, a single worker keeps about $24,164, or $929.37 every two weeks. Change hours, overtime or W-4 details in the calculator below; for other pay levels use the Michigan paycheck calculator.
| Hours a week | Weekly gross | Yearly gross | Yearly take-home | Take-home per hour |
|---|---|---|---|---|
| 20 | $274.60 | $14,279 | $12,831 | $12.34 |
| 30 | $411.90 | $21,419 | $18,589 | $11.92 |
| 40 | $549.20 | $28,558 | $24,164 | $11.62 |
Take-home at minimum wage
Michigan minimum wage paycheck
Preset to $13.73 an hour, 40 hours a week, paid every two weeks.
Take-home pay$929.37every two weeks · $24,164 a year
| Item | Per paycheck | Per year |
|---|---|---|
| Earnings | ||
| Gross pay | $1,098.40 | $28,558.40 |
| Taxes | ||
| Federal income tax | −$47.96 | −$1,247.01 |
| Social Security (6.2%) | −$68.10 | −$1,770.62 |
| Medicare (1.45%) | −$15.93 | −$414.10 |
| Michigan income tax (4.25%) | −$37.04 | −$963.04 |
| Total taxes | −$169.03 | −$4,394.77 |
| Net pay | $929.37 | $24,163.63 |
Taxes take 15.4% of gross pay in Michigan. Your top federal withholding bracket is 12%.
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Related pay tools
Overtime at the minimum wage is $20.60 an hour (time and a half): see the time and a half calculator. Add up shifts with the time card calculator, and compare states with the state tax calculator.
Frequently asked questions
What is minimum wage in Michigan right now?
$13.73 an hour, in effect since January 1, 2026, for employers with two or more employees. Tipped employees can be paid $5.49 an hour in cash if tips bring them to $13.73.
Will the Michigan minimum wage be $15 in 2027?
Yes. The rate is scheduled to reach $15.00 an hour on January 1, 2027. After that it is adjusted each year by formula.
What is the tipped minimum wage in Michigan?
$5.49 an hour in 2026, with a tip credit of up to $8.24. The tipped cash wage rises each year until it equals half of the full minimum wage in 2031.
How much is $13.73 an hour a year after taxes in Michigan?
Full time is $28,558 a year before tax. A single filer with a standard 2026 W-4 keeps about $24,164 after federal income tax, Social Security, Medicare and Michigan withholding, or $929.37 every two weeks.