Michigan Salaries 2025
Automotive heartland transforming for the EV era
Median Household Income
Michigan Salary Overview 2025
Michigan stands at a transformative moment. The historic center of American automotive manufacturing is reinventing itself for the electric vehicle era, with GM, Ford, and Stellantis investing billions in EV and battery production. The state's median household income of $66,000 approaches the national median, while Michigan's cost of living (91 index, 9% below average) creates solid purchasing power.
The Detroit metro has experienced genuine renaissance—downtown revitalization, tech startup growth, and young professional migration have changed the narrative. Ann Arbor anchors education and tech with University of Michigan's world-class engineering and medical programs. Grand Rapids has emerged as a healthcare and manufacturing hub on the state's west side.
Michigan's flat 4.25% income tax is competitive, and housing remains remarkably affordable compared to coastal metros. The EV transition creates both opportunity and uncertainty—those with skills in battery technology, software, and advanced manufacturing are positioned well. For comprehensive salary data, see salary trends 2025.
Michigan Salary Snapshot
| Metric | Michigan | National Average |
|---|---|---|
| Median Household Income | $66,000 | $74,580 |
| Mean Household Income | $85,500 | $97,300 |
| Per Capita Income | $35,500 | $37,638 |
| Minimum Wage (2025) | $10.56/hr | $7.25/hr (federal) |
| Cost of Living Index | 91 | 100 |
| State Income Tax | 4.25% flat | Varies |
Salaries by Michigan Region
Detroit Metro – Automotive Capital
Median Household Income: $62,000
Metro Detroit remains the global center of automotive engineering and manufacturing. GM (Detroit), Ford (Dearborn), and Stellantis (Auburn Hills) headquarters employ tens of thousands in engineering, design, and corporate roles. The EV transition has created intense demand for battery engineers, software developers, and autonomous vehicle specialists. Automotive engineers $80,000-$140,000, software engineers $90,000-$150,000, designers $70,000-$120,000.
Downtown Detroit has transformed with Quicken Loans/Rocket Companies, tech startups, and urban revitalization. Housing varies dramatically—suburban Oakland County ($350,000+ median) differs vastly from Detroit city ($80,000 median, though gentrifying areas are higher).
Ann Arbor – Education & Tech Hub
Median Household Income: $70,000
University of Michigan creates a concentration of education, healthcare, and tech talent. U-M is among the nation's top research universities with world-class engineering and medical programs. Faculty $90,000-$200,000+, healthcare (Michigan Medicine) competitive, tech startups leverage university talent. Housing is expensive by Michigan standards ($450,000 median) but offers exceptional quality of life. Many auto executives and engineers commute from Ann Arbor.
Grand Rapids – West Michigan Hub
Median Household Income: $60,000
Grand Rapids has grown into Michigan's second major metro with healthcare (Spectrum Health/Corewell), furniture manufacturing heritage (Steelcase, Herman Miller), and diversified economy. Healthcare professionals earn competitive wages, manufacturing remains strong. More affordable than Detroit suburbs ($280,000 median home) with distinct West Michigan culture.
Lansing – State Capital
Median Household Income: $52,000
State government and Michigan State University anchor Lansing. GM maintains major assembly plant. Very affordable ($180,000 median home) with stable employment. Faculty $70,000-$150,000, government positions follow state scales.
Northern Michigan / Upper Peninsula
Median Household Income: $45,000-$55,000
Tourism, healthcare, and natural resources drive northern economies. Very affordable with exceptional outdoor recreation but limited professional opportunities. Increasingly attractive for remote workers seeking lakefront and wilderness lifestyle.
| Region | Median Income | Median Home | Key Industries |
|---|---|---|---|
| Detroit Metro | $62,000 | $250,000 | Automotive, Tech, Healthcare |
| Oakland County | $85,000 | $350,000 | Auto HQs, Professional Services |
| Ann Arbor | $70,000 | $450,000 | Education, Healthcare, Tech |
| Grand Rapids | $60,000 | $280,000 | Healthcare, Manufacturing |
| Lansing | $52,000 | $180,000 | Government, Education, Auto |
Top Paying Industries in Michigan
Automotive & EV Technology
Michigan's automotive industry is transforming for the EV era. GM's Ultium battery platform, Ford's EV investments, and Stellantis electrification create intense demand for new skills. Battery engineers $95,000-$160,000, autonomous vehicle engineers $110,000-$180,000, traditional powertrain engineers $80,000-$130,000. Software increasingly critical—auto software engineers $100,000-$160,000. The transition creates opportunity but also displacement of traditional roles.
Healthcare
Michigan Medicine (Ann Arbor), Corewell Health (formerly Spectrum/Beaumont), Henry Ford Health, and Ascension Michigan provide substantial employment. Physicians $260,000-$450,000+, nurses $60,000-$85,000, healthcare IT $70,000-$120,000. Healthcare remains stable regardless of auto industry cycles.
Technology
Detroit's tech scene has grown significantly. Rocket Companies/Quicken Loans (fintech), autonomous vehicle startups, and automotive software create opportunities. Software engineers $85,000-$145,000, data scientists $90,000-$140,000, UX designers $75,000-$120,000. Ann Arbor adds university-connected startups and research.
Manufacturing
Beyond automotive, Michigan manufactures furniture (Grand Rapids), medical devices, aerospace components, and industrial equipment. Manufacturing engineers $70,000-$110,000, plant managers $90,000-$150,000, skilled trades $50,000-$80,000.
| Industry | Entry Level | Mid-Career | Senior Level |
|---|---|---|---|
| Automotive Engineering | $75,000 | $105,000 | $145,000+ |
| EV/Battery Engineering | $85,000 | $120,000 | $165,000+ |
| Software Engineering | $75,000 | $110,000 | $150,000+ |
| Healthcare (Physicians) | $260,000 | $340,000 | $450,000+ |
| Nursing (RN) | $55,000 | $70,000 | $85,000+ |
Michigan Tax Analysis
Flat 4.25% Income Tax
| Salary | MI Tax (4.25%) | IL Tax (4.95%) | OH Tax (~3.5%) |
|---|---|---|---|
| $60,000 | $2,550 | $2,970 | $2,100 |
| $80,000 | $3,400 | $3,960 | $2,800 |
| $100,000 | $4,250 | $4,950 | $3,500 |
| $150,000 | $6,375 | $7,425 | $5,250 |
Michigan's tax is moderate—lower than Illinois, slightly higher than Ohio and Indiana.
Property Tax: Michigan property taxes average 1.38%—above national average but lower than Illinois.
Sales Tax: 6% statewide.
Note: Some Michigan cities (Detroit, Grand Rapids, and others) have additional city income taxes of 1-2.4%.
Michigan Cost of Living Analysis
| Expense | Michigan | National Avg |
|---|---|---|
| Housing Index | 78 | 100 |
| Median Home Price | $240,000 | $420,000 |
| Median Rent (2BR) | $1,150 | $1,400 |
| Groceries Index | 95 | 100 |
| Utilities Index | 100 | 100 |
| Transportation Index | 105 | 100 |
Housing by Region
| Area | Median Home | Rent (2BR) |
|---|---|---|
| Detroit (city) | $85,000 | $950 |
| Birmingham/Troy | $450,000 | $1,600 |
| Ann Arbor | $450,000 | $1,700 |
| Grand Rapids | $280,000 | $1,250 |
| Lansing | $180,000 | $1,000 |
| Traverse City | $400,000 | $1,400 |
A $75,000 salary in Michigan provides equivalent purchasing power to approximately $100,000 in Chicago or $130,000 in Los Angeles.
Highest Paying Jobs in Michigan 2025
| Occupation | Average Salary | Top 10% Earn |
|---|---|---|
| Physicians/Surgeons | $290,000 | $450,000+ |
| Automotive Executives | $250,000 | $500,000+ |
| IT Directors | $145,000 | $195,000+ |
| EV/Battery Engineers | $125,000 | $170,000+ |
| Software Architects | $140,000 | $180,000+ |
| Dentists | $170,000 | $260,000+ |
| Pharmacists | $120,000 | $145,000+ |
| Autonomous Vehicle Engineers | $140,000 | $190,000+ |
Frequently Asked Questions
Is Detroit really making a comeback?
Yes, genuinely. Downtown and Midtown have transformed with new residents, restaurants, and businesses. Quicken Loans/Rocket Companies relocated thousands of employees downtown, catalyzing development. Neighborhoods vary—some are thriving, others still challenged. The city is not what it was in 2010, though work remains.
How will the EV transition affect auto jobs?
Mixed. EVs require fewer workers for assembly (fewer parts) but more for battery production and software. Engineers with EV, battery, and software skills are in high demand. Traditional powertrain engineers face displacement. The industry is hiring aggressively for new skills while reducing traditional roles. Overall employment may decline but new jobs pay well.
Ann Arbor vs. Detroit suburbs?
Ann Arbor offers university-town culture, excellent schools, walkability, and tech/healthcare employment. More expensive but higher quality of life for many. Detroit suburbs (Birmingham, Troy, Royal Oak) offer more housing value with access to auto company headquarters. Many families choose based on employer location and school preferences.
What about the winters?
Cold and snowy—expect November through March winter conditions. Detroit averages 40+ inches of snow; northern areas get much more. Lake effect impacts west side significantly. Michiganders embrace winter with skiing, ice fishing, and snowmobiling. Those from warm climates should visit in January before committing.
Is Michigan good for remote workers?
Excellent value. Low costs, lakefront properties, and outdoor recreation make Michigan attractive for those with location-flexible income. Northern Michigan and lakefront areas that were previously unaffordable for local wages become accessible with remote salaries. Consider broadband availability in rural areas.