Michigan Capitol. (Susan J. Demas photo)

Michigan residents will see some changes in 2026, including an increase in the minimum wage, maximum unemployment benefit increases and an increase in the gas tax.

Minimum wage increase for Michigan in 2026

According to the Michigan Chamber of Commerce, Michigan’s minimum wage will rise from $12.48 to $13.73/hour under the Improved Workforce Opportunity Wage Act (IWOWA). The minor wage (ages 16-18) remains at 85% of the full minimum wage but increases to $11.67/hour. The tipped employee wage will increase to $5.49 per hour (40% of the full minimum wage), provided the employee receives at least $8.24 per hour in tips.

Michigan gas tax

As of yesterday, Michigan drivers now see a change in how gasoline is taxed, under a new law aimed at funding road and bridge projects, Metro Detroit News reported last week. The state is eliminating the 6% sales tax on gasoline and replacing it with a higher per-gallon fuel tax. The gas tax will increase from about 31 cents per gallon to about 52 cents per gallon, a 21-cent increase.

As of Jan. 1, the rate rises from 31¢ to 51¢, indexed to inflation, and ends the diversion of fuel sales-tax revenue to schools and local revenue sharing. Advocates of the bill say that because of the elimination of the sales tax, consumers won’t notice a difference at the pumps.

Michigan unemployment benefits will increase in 2026.

The maximum weekly rate for unemployment benefits increased as of Thursday, to $530, up from the current $446.

Only claims filed after Jan. 1 2026 qualify for the $84 weekly increase. Claims prior to Jan. 1, 2026, will not see the change in the approved weekly benefit rate.

Legal News cautions not everyone receives the maximum weekly benefit rate; how much an individual is approved for is based on their wage history.

Also increasing on Jan. 1, 2026, is the amount an unemployed worker receives for each dependent (up to a total of five). That rises to $19.33 per dependent, up from this year’s $12.66 for each dependent.

The boost is part of bipartisan legislation signed into law by Michigan Gov. Gretchen Whitmer in December 2024 to provide stronger financial support for unemployed workers, Detroit Legal News reported on Dec. 29. The updated unemployment law that went into effect in April 2025 set annual increases in the weekly benefit rate and the amount for each dependent, while it also extended from 20 to 26 the maximum number of weeks someone can collect benefits.