Michigan Workers Comp Calculator
Updated November 2026 · Free · No sign-up
Calculate your Michigan workers comp benefit — 80% of after-tax AWW of your average weekly wage, capped (~$1130 — verify current), tax-free. Unusual: 80% of the AFTER-TAX wage — often nets similar to other states’ two-thirds gross.
Quick answer: Michigan TTD pays 80% of after-tax AWW up to roughly $1130/week (indexed — verify with the Workers’ Disability Compensation Agency). Benefits are tax-free; the AWW should include overtime and bonuses.
The Michigan Formula
80% of after-tax AWW, capped at the state maximum. Unusual: 80% of the AFTER-TAX wage — often nets similar to other states’ two-thirds gross. Medical treatment is covered at 100% separately — no deductibles, ever.
Worked Example
A $950 AWW claimant under this formula receives the computed weekly check tax-free — close to full take-home for median earners. High earners hit the cap and feel the gap; the AWW fight (including overtime, bonuses, second jobs where allowed) is where underpayments start.
Claim Rules That Matter in Michigan
- Report immediately — late reporting is the top denial basis everywhere.
- Waiting period: the first days are unpaid unless disability extends (state retro rules).
- Light duty: partial-disability formulas pay on the wage GAP; refusing suitable duty risks suspension.
- Agency: Workers’ Disability Compensation Agency — disputes, forms, and the current cap live there.
Settlements and the Baseline
Lump-sum settlement offers buy out the stream this page computes — know your weekly figure × realistic duration before any signature, and remember comp’s tax-free status when comparing against taxable alternatives. The general framework (TTD/TPD/PPD types, AWW audits) lives in the main workers comp calculator.
Frequently Asked Questions
How much does workers comp pay in Michigan?
80% of after-tax AWW of your average weekly wage, up to ~$1130/week (indexed annually) — tax-free, with medical covered fully and separately.
What counts in the average weekly wage?
Gross earnings over the lookback including overtime and bonuses — insurer AWWs that skip OT underpay every check downstream.
Is Michigan workers comp taxable?
No — benefits are free of income tax and FICA (limited offsets only alongside SSDI).
How long do benefits last?
Unusual: 80% of the AFTER-TAX wage — often nets similar to other states’ two-thirds gross — duration caps vary by claim type; the agency determination states yours.
What if my claim is denied?
Appeal through the Workers’ Disability Compensation Agency — late reporting and disputed causation drive most denials; documentation and prompt medical records win reversals.
✓ Formula verified • Last updated: November 3, 2026