MIIndexed annually

Michigan minimum wage 2026

The Michigan minimum wage is $12.48 per hour as of 2026-01-01. The tipped cash wage is $4.74 with a tip credit of $7.74. [MI labor dept.][DOL WHD]

Standard minimum

$12.48

Effective 2026-01-01.

Verified 2026-06-24

Tipped cash wage

$4.74

Tip credit ceiling $7.74.

Verified 2026-06-24

vs federal $7.25

+$5.23

Above the federal minimum.

Verified 2009-07-24

Next scheduled step

$13.73

Effective 2027-01-01.

Verified 2026-06-24

Tip-credit split

Cash $4.74Credit $7.74Combined $12.48

Take-home at the Michigan minimum

Estimated take-home at $12.48 per hour

20 hours/week

$249.60

~$220/wk after tax

$12,979.2 annual gross

30 hours/week

$374.40

~$323/wk after tax

$19,468.8 annual gross

40 hours/week

$499.20

~$421/wk after tax

$25,958.4 annual gross

Estimate uses 2026 federal brackets (single filer), FICA 7.65 percent, and a flat state effective rate. Actual withholding varies by W-4 and credits.

Statute and indexing

Mothering Justice v. Nessel (Michigan Supreme Court, 2024) reinstated the 2018 Improved Workforce Opportunity Wage Act. Rate reached $12.48 on 2025-02-21 and steps to $13.73 in 2026, $14.97 in 2027 (with CPI-U adjustment), then full CPI-U indexing. Tipped cash wage phases up to 100 percent of the state minimum by 2031 under MCL 408.934d.

Reference

Federal vs state delta