Saginaw Local Tax Guide (2026)
Understanding how local taxes work in Saginaw, Michigan, and how they affect your take-home pay.
In this guide
Last updated: October 1, 2026
- •Saginaw has a local income tax that applies to income earned in the city.
- •Residents pay 1.50% on all income. Non-residents pay 0.75% on Saginaw income only.
- •Local tax is separate from Michigan state tax and federal tax. Both are calculated independently and add to your total tax burden.
- •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.
What Saginaw local tax costs at three incomes
The 1.50% resident rate is charged on top of federal tax, Michigan state tax and FICA. Priced for 2026, a $75,000 salary loses $1,125 to Saginaw alone and takes home $57,280: a combined 23.6% of gross across all four.
| Salary | Saginaw tax | Michigan tax | Federal + FICA | Take-home | Total rate |
|---|---|---|---|---|---|
| $50,000 | $750 | $2,125 | $7,645 | $39,480 | 21.0% |
| $75,000 | $1,125 | $3,188 | $13,408 | $57,280 | 23.6% |
| $120,000 | $1,800 | $5,100 | $26,750 | $86,350 | 28.0% |
Living in Saginaw rather than only working there costs 0.75 percentage points more: $563 a year on $75,000, since non-residents pay 0.75%.
How Saginaw compares
Of the 62 US jurisdictions that levy a local income tax, Saginaw ranks 49th by resident rate, level with 2 other jurisdictions. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Immediately above Saginaw sits Lake County (1.50%) and below it Vanderburgh County (Evansville) (1.25%).
Within Michigan, 7 jurisdictions charge a local income tax and Saginaw is the 3rd highest. Same salary, different address:
| Michigan jurisdiction | Resident rate | Cost on $75,000 |
|---|---|---|
| Detroit | 2.40% | $1,800 |
| Grand Rapids | 1.50% | $1,125 |
| Saginaw | 1.50% | $1,125 |
| Battle Creek | 1.00% | $750 |
| Flint | 1.00% | $750 |
| Lansing | 1.00% | $750 |
| Pontiac | 1.00% | $750 |
What local taxes apply in Saginaw
Saginaw has a local income tax that applies to income earned in the city.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 1.50% | All income |
| Non-resident | 0.75% | Saginaw income only |
Saginaw has a local income tax that applies to income earned in the city. The rate depends on whether you're a resident or non-resident.
Saginaw has a local income tax that applies to income earned in the city.
Residents: If you live in Saginaw, you pay 1.50% on all your income.
Non-residents: If you work in Saginaw but live elsewhere, you pay 0.75% on income earned in the city.
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How they interact with state taxes
Saginaw local tax is calculated separately from Michigan state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.
Tax Deduction
Saginaw local tax is calculated separately from Michigan state income tax. This means:
- Local tax is in addition to state tax, not instead of it
- Both taxes are calculated on your taxable income (or wages, depending on the tax type)
- Your employer withholds both local and state taxes from your paycheck
- You may be able to deduct local tax on your state tax return, depending on Michigan tax rules
For example, if you earn $100,000 in Saginaw, you pay Michigan state tax on that income, plus Saginaw local tax. The local tax doesn't reduce your state taxable income.
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Who is affected
You're subject to Saginaw local tax if you live in the city or work in the city, depending on whether you're a resident or non-resident.
You're subject to Saginaw local tax if:
- You live in Saginaw (residents pay on all income)
- You work in Saginaw but live elsewhere (non-residents pay on Saginaw income only)
- You're self-employed and perform work in Saginaw
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Common paycheck misconceptions
Common misunderstandings about Saginaw local tax, including when it applies and how it's calculated.
Common misconceptions about Saginaw local tax:
- "It's the same as state tax": False. Local tax is separate from Michigan state tax and is calculated independently.
- "I only pay if I live there": False. Non-residents who work in the city also pay.
- "Remote work means no tax": If you're a Saginaw resident, you typically pay on all income regardless of where you work.
Take-home pay impact
Saginaw local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
Saginaw local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Saginaw resident:
- Local tax: approximately $1500 annually
- This reduces your bi-weekly paycheck by about $58
- Combined with Michigan state tax and federal tax, the total tax burden can be significant
To see exactly how Saginaw local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
Want to see this with your numbers? Try the calculator with your numbers →
Does this apply to you?
Determine whether you're subject to Saginaw local tax based on where you live and work.
Check Your Pay Stub
You're subject to Saginaw local tax if:
- You live in Saginaw (residents pay on all income)
- You work in Saginaw but live elsewhere (non-residents pay on Saginaw income only)
You're not subject to Saginaw local tax if you live and work outside the city, even if you're a Michigan resident.