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Grayling, Michigan city income tax 2026

On $60,000, a Grayling resident pays $570 a year in city income tax.

Single filer: ($60,000 − $3,000 exemption) × 1%. Someone who lives outside Grayling but works there pays the nonresident rate, 0.5%: $285 a year.

Tax year 2026. Rates checked ; page updated .

Take-home pay per paycheck in Grayling

$1,827.72

$47,521 a year. Total taxes take 20.8% of gross pay, including $570 of local tax.

Pay breakdown per paycheck and per year
LinePer paycheckPer year
Gross pay$2,307.69$60,000
Federal income tax−$193.08−$5,020
Social Security−$143.08−$3,720
Medicare−$33.46−$870
State income tax−$88.43−$2,299
Grayling income tax (resident)−$21.92−$570
Take-home pay$1,827.72$47,521

Michigan city tax is modeled on wages; 401(k) deferrals are included (UCITO), section 125 is excluded.

Where you live and work
How are you paid?

Percent of gross pay, before tax. Leave at 0 if you don't contribute.

Section 125 deductions taken before tax. Your pay stub or benefits portal shows them.

Starting values are examples. Change them to match your pay stub.

Includes federal, Michigan and local tax (Michigan rules). Runs in your browser; your inputs are saved in this page's address so you can bookmark or share the result.

Grayling rates

Grayling city income tax
Item2026
Resident rate1%
Nonresident rate (wages earned in the city)0.5%
Exemption per person$3,000
In effectFull tax year 2026 (no 2026-dated document found)
CountyCrawford County
StatusVerified

Source note: $3,000 exemption is unusually large but stated in the 2025 instructions and matches Grand Rapids' cross-city table. Forms page is JS-rendered; blob URLs captured via built-in browser. Second sources confirm rates only, not the exemption.

Residents vs people who work in the city

  • Residents pay 1% on all wages, wherever they work, after a $3,000 exemption for each person on the return.
  • Nonresidents pay 0.5% only on wages earned in Grayling.
  • Living in one taxing city and working in another: you pay the work city's nonresident tax, and your home city credits it, up to its own nonresident rate (Michigan's uniform city income tax ordinance).

Worked example, $60,000. Live in Grayling, work in Big Rapids: total city tax $582 (Big Rapids income tax (nonresident) $297; Grayling income tax (resident) $570; Grayling credit for tax paid to Big Rapids -$285). Live in Big Rapids, work in Grayling: $594 (Grayling income tax (nonresident) $285; Big Rapids income tax (resident) $594; Big Rapids credit for tax paid to Grayling -$285).

Grayling city tax at other salaries

City tax at other salaries
SalaryResidentNonresident working here
$30,000$270$135
$45,000$420$210
$60,000$570$285
$80,000$770$385
$100,000$970$485
$150,000$1,470$735

Nearest other taxing cities

Nearest taxing cities
CityDistanceResidentNonresidentResident tax on $60,000
Big Rapids76 mi1%0.5%$594
Saginaw94 mi1.5%0.75%$888.75
Ionia118 mi1%0.5%$593
Flint124 mi1%0.5%$594
Portland124 mi1%0.5%$590
Muskegon125 mi1%0.5%$594

Sources and verification

  1. 2025 GR1040 Instructions (Forms & Permits > Income Tax Forms > 2025 FORMS)
  2. City of Grayling - Income Tax Department page
  3. 2025 Employer Withholding Booklet
  4. Second source: City of Grand Rapids Income Tax Dept. — Other Michigan Cities with Income Tax (undated web table)
  5. Michigan Treasury: cities that impose an income tax

Rates as of tax year 2026 (2025 return instructions where 2026 not yet published; see each record); checked . "Verified" means a second, independent publisher shows the same rate; "single official source" means only the official register lists it so far, so confirm with the tax collector before relying on it. See how local rates are checked.