2026 tax year · Michigan
Delivery and rideshare driver taxes in Michigan
DoorDash, Uber, Lyft and the rest report your gross and withhold nothing. The gap between that and what you are actually taxed on is mileage, in Michigan that gap is worth $3,820 in tax.
Take a driver who grossed $42,000 over 18,000 business miles. After mileage at 74.3 cents and the rest of the stack, worked through on the delivery and rideshare driver page $14,505 comes off and $27,495 is left as taxable profit. That profit is what Michigan and the IRS charge against.
What that leaves you owing in Michigan
Michigan taxes income at a flat 4.25% for 2026, applied on top of federal income tax and self-employment tax.
| Self-employment tax | $3,885 |
| Federal income tax | $756 |
| Michigan income tax | $1,086 |
| Total tax | $5,727 |
| Effective rate on gross | 13.6% |
Earning more in Michigan
A single filer taking the standard deduction, standard mileage method, this work as the only income, the calculator above handles the other filing statuses. Miles rise with earnings, so the deduction rises too, and the effective rate on gross climbs more slowly than it would for someone whose income grew without expenses attached:
| Volume | Gross | Mileage off | Taxable profit | Michigan tax | Total tax | Rate on gross |
|---|---|---|---|---|---|---|
| Part-time, a few evenings | $15,000 | $4,826 | $10,174 | $402 | $1,839 | 12.3% |
| Steady side income | $42,000 | $13,365 | $28,635 | $1,131 | $6,018 | 14.3% |
| Full-time dashing | $68,000 | $22,275 | $45,725 | $1,806 | $10,553 | 15.5% |
Switching state opens that state's page.
Enter your numbers and press Calculate to see your 2026 estimate.
Driving across a Michigan line
Driving income is sourced to where the wheels were, not where you live. Take a fare or a delivery that ends in the next state and that state can claim the income earned inside it. Most drivers near a border never file the second return, the amounts are small and the platforms do not split earnings by state. But the obligation exists, and it is the state you drove INTO that would come asking.
On $27,495 of profit, what the states around Michigan would charge:
| State | Its tax | vs Michigan |
|---|---|---|
| Ohio | $40 | −$1,129 |
| Indiana | $811 | −$357 |
| Wisconsin | $1,081 | −$88 |
- Ohio would take $1,129 less, $40 against Michigan's $1,169.
- Indiana would take $357 less, $811 against Michigan's $1,169.
- Wisconsin would take $88 less, $1,081 against Michigan's $1,169.
Delivery and rideshare driver tax questions in Michigan
How much should a Michigan driver set aside?
About 13.6% of gross on the $42,000 example, $5,727 across self-employment tax, federal income tax and $1,086 to Michigan. Set aside from each payout rather than finding it in April.
Does the $42,000 on my 1099-NEC match what Michigan taxes?
No. Michigan taxes profit, not gross. After $14,505 of deductions the taxable figure is $27,495, so the Michigan bill is $1,086 rather than what gross alone would suggest.