Tax Planning for Physicians in Detroit (2026)

Detroit levies the highest city income tax allowed under Michigan law. It applies to residents on all income and to nonresidents on income from work performed in the city, which includes many physicians at Detroit hospitals.

2026 at a glance

Planning priorities

• Nonresident physicians should allocate wages between days worked in and outside Detroit; only the Detroit portion is taxed.
• Practice owners can elect Michigan's flow-through entity tax to move state tax above the federal SALT cap.
• Grand Rapids, Lansing, Flint and other Michigan cities levy their own income taxes, so physicians who work at several sites may file more than one city return.

See the full Michigan physician tax guide.

More physician tax guides

• Other Michigan cities: Grand Rapids, Ann Arbor, Lansing.
• State rules: Michigan physician tax guide and all 50 state guides.
• By specialty: Dentists, Ophthalmologists, Hospitalists, Radiologists and every specialty.
• Core strategy: tax planning for physicians, tax planning for medical practice owners, advanced strategies for high-income physicians and S corporation tax planning for physicians, plus the physician tax glossary.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.