Michigan tax guide

Michigan taxes for self-employed workers in 2026

Michigan's penalty for skipping estimated payments is steep, and some cities add their own income tax. Here's what to plan for in 2026.

Published by Cadus Labs LLC · Last updated November 9, 2026 · How we write these guides

Based on the 2026 Form MI-1040ES and Michigan Department of Treasury city tax guidance.

Michigan estimated tax payments for 2026

Michigan's 2026 estimate uses a 4.25% rate. You must make estimated payments if you expect to owe more than $500 when you file, unless your withholding covers enough of the tax.

The form is Form MI-1040ES, and you can generally pay online instead of mailing it.

2026 Michigan estimated tax payment dates for calendar-year filers
Payment due	Share of the year's required payment
April 15, 2026	25%
June 15, 2026	25%
September 15, 2026	25%
January 15, 2027	25%

You can also pay in full with the first voucher on April 15, 2026. Michigan doesn't send reminders.

The penalties are steeper than most

Treasury may charge a penalty of 25% of the tax due, with a $25 minimum, for failing to file estimated payments. The penalty is 10%, with a $10 minimum, for paying too little or paying late. Interest applies on top.

City income taxes

Some Michigan cities levy their own income tax on top of the state's. The Department of Treasury handles Detroit and Flint city taxes, and other cities run their own. Check whether yours has one.

Your federal tax comes first

Wherever you live, self-employed income is subject to federal income tax and self-employment tax. A single filer with $60,000 of net profit and no other income owes about $12,037 in federal tax for 2026, or 20% of profit, before any state or local tax.

Federal estimated payments are due April 15, June 15, and September 15, 2026, and January 15, 2027. Use our 1099 tax calculator to run your own numbers.

Recordkeeping checklist

Set aside for federal and state tax from every payment you receive.

Make federal and state estimated payments if you expect to owe enough.

Keep receipts and a mileage log for everything you deduct.

Check whether your city has its own income tax.

Free tools for this

Calculator

1099 and Self-Employment Tax Calculator

Enter your 1099 income and business expenses to estimate self-employment tax, federal income tax, and what to set aside each quarter. No sign-up, and nothing you type is saved.

Calculator

Quarterly Tax Set-Aside Calculator

Turn expected profit into a practical tax savings target, then use Cadus to keep income, expenses, deductions, receipts, and reports organized.

Template

Quarterly Tax Savings Worksheet

Use this worksheet to turn expected monthly profit into a practical tax savings target before estimated tax due dates arrive.

Template

Business Expense Log Template

Copy this table to start organizing business purchases, receipt proof, categories, and business purpose before moving records into Cadus.

Official sources

Michigan Treasury: 2026 Form MI-1040ES Michigan Treasury: city taxes

Related guides

Self-employment tax guide

Self-Employment Tax

The self-employment tax rate is 15.3%. See who pays, how the 2026 wage base works, the deduction for half the tax, and a worked example.

Estimated tax guide

Quarterly Estimated Taxes

2026 estimated tax due dates, who has to pay, how to avoid the penalty, and a worked example for a self-employed worker earning $60,000.

Schedule C education

Schedule C Expense Categories

Every Schedule C expense line in plain English: what goes on each one, what doesn't, and the records to keep for self-employed workers.

Michigan Taxes FAQ

What is Michigan's income tax rate for 2026?

The 2026 MI-1040ES uses 4.25%.

What's the penalty for not paying Michigan estimated tax?

Treasury may charge 25% of the tax due, with a $25 minimum, for failing to file estimated payments, or 10%, with a $10 minimum, for paying too little or late, plus interest.

Cadus educational content is not tax, legal, or accounting advice. Tax rules can change, and individual facts matter. Review official guidance or speak with a qualified tax professional before filing.