Salary & Cost of Living in Detroit, MI
Detroit, MI: $48,000 median salary, cost of living index 87, $12.48/hr minimum wage. Calculate your take-home pay with our free paycheck calculator.
Median Salary
$48,000
$23/hr
Cost of Living
87
US avg = 100
Minimum Wage
$12.48
per hour
Unemployment
5.5%
rate
Detroit, MI Overview
Population
639,111
Median Salary
$48,000
Average Salary
$54,500
Avg Commute
27 min
Median Home Price
$80,000
Median Rent
$1,050/mo
Job Growth
+1%
Sales Tax
6%
Detroit is located in Michigan with a population of 639,111. The median household salary is $48,000 per year ($23/hour), which is $11,384 below the national median of $59,384. The average commute time is 27 minutes, and the city has a job growth rate of +1%.
Detroit Paycheck Calculator
Enter your annual salary to see your estimated take-home pay in Detroit, MI, after federal, state, and local taxes.
Estimated Annual Take-Home Pay
$37,415
$3,117.88/month · $1,439.02/biweekly · Effective Rate: 22.1%
Gross Pay
$48,000
Federal Tax
-$3,722
State Tax
-$2,040
Local Tax
-$1,152
FICA
-$3,672
Net Pay
$37,415
Pay Breakdown
| Item | Monthly | Annual |
|---|---|---|
| Gross Salary | $4,000.00 | $48,000.00 |
| Federal Income Tax | -$310.13 | -$3,721.50 |
| Michigan State Tax (4.25%) | -$170.00 | -$2,040.00 |
| Local Tax (2.4%) | -$96.00 | -$1,152.00 |
| Social Security (6.2%) | -$248.00 | -$2,976.00 |
| Medicare (1.45%) | -$58.00 | -$696.00 |
| Net Take-Home Pay | $3,117.88 | $37,414.50 |
Salary Comparison: Detroit vs Other Cities
See how Detroit's median salary and cost of living compare to the national average and similar cities.
| City | Median Salary | COL Index | Adj. Salary |
|---|---|---|---|
| Detroit, MI | $48,000 | 87 | $55,172 |
| National Average | $59,384 | 100 | $59,384 |
| Decatur, AL | $48,000 | 84 | $57,143 |
| Springdale, AR | $48,000 | 86 | $55,814 |
| Pomona, CA | $48,000 | 115 | $41,739 |
| Pueblo, CO | $48,000 | 88 | $54,545 |
Adjusted salary reflects purchasing power when cost of living is factored in. A higher adjusted salary means your money goes further.
Cost of Living in Detroit
Detroit's cost of living index is 87 (national average = 100). Living in Detroit is 13% less expensive than the national average.
Median Home Price
$80,000
Median Monthly Rent
$1,050
Annual Rent Cost
$12,600
Your Salary's Purchasing Power
Your $37,415 annual take-home pay in Detroit has the purchasing power of approximately $43,005 in an average-cost US area. Your $48,000 salary stretches further here than in most US cities.
Top Industries in Detroit
Detroit's economy is driven by these key industries. Workers in top industries often earn significantly above the median salary of $48,000.
Salary Tips for Detroit Workers
- Your salary goes further here. Detroit has a cost of living 13% below the national average. A salary of $48,000 here has the purchasing power of about $55,172 in an average-cost area.
- Research top industries. Detroit's top industries include Automotive, Healthcare, Technology. Targeting roles in these sectors can help you earn above the $48,000 median salary.
- Review your W-4 withholding. If you regularly receive large tax refunds, adjust your W-4 to increase your per-paycheck take-home pay instead of giving the government an interest-free loan.
Explore Salaries Across the US
Compare salary data and cost of living for hundreds of US cities. Find out where your paycheck goes the furthest.
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Frequently Asked Questions
What is the median salary in Detroit, MI?
The median salary in Detroit, MI is $48,000 per year, or $23 per hour. The average salary is $54,500. This is $11,384 below the national median of $59,384.
What is the cost of living in Detroit, MI?
Detroit's cost of living index is 87 (national average = 100), meaning it is 13% less expensive compared to the national average. The median home price is $80,000 and the median monthly rent is $1,050.
What are the best industries in Detroit?
The top industries in Detroit, MI include Automotive, Healthcare, Technology. The city has a job growth rate of 1% and an unemployment rate of 5.5%. Workers in these industries often earn above the city's median salary of $48,000.
How does Detroit's salary compare to other cities?
Detroit's median salary of $48,000 is 19.2% below the national median of $59,384. However, when adjusted for cost of living (index: 87), the real purchasing power is approximately $55,172.
What is the minimum wage in Detroit, MI?
The minimum wage in Detroit, MI is $12.48 per hour. This equals approximately $25,958 per year for a full-time worker (40 hours/week). This is $5.23 above the federal minimum wage of $7.25/hour.