8%
Will Michigan's individual income tax rate for tax year 2027 be below 4.25%?
Forecast 2026-10-21 · resolves by 2027-06-30
Starting residency · MI
Starting residency in Michigan
Michigan requires residents to hold a training license from the Michigan Board of Medicine (LARA Bureau of Professional Licensing): the Educational Limited License. Michigan has a flat income tax (4.25% for 2026).
Training license
- Status
- Training license required
- Called
- Educational Limited License, plus a controlled substance license
- Apply
- No apply-by date; the board says processing typically takes 4 to 6 weeks from receipt. US/Canadian graduates may apply up to 3 months before graduation.
- Fee
- $93.60 for the educational limited license plus $93.70 for the controlled substance license; renewal $33.00 per year (controlled substance renewal $82.70)
- Renewal
- Annual; renewable for no more than 5 years in total
Who applies: Resident, online through MiPLUS; the training hospital's Director of Medical Education sends a Certification of Appointment directly to the board.
Board rule requires anyone not eligible for a full license to obtain the educational limited license before starting postgraduate training. The license confines practice to the approved hospital or institution, so it does not cover moonlighting. Changing programs requires a new Certification of Appointment. Applicants complete a fingerprint background check and state-required training on human trafficking, implicit bias and opioids.
Full license: After 1 year of postgraduate clinical training, for US/Canadian graduates, IMGs and DOs (rules effective 2024 for MDs and 2023 for DOs). A full license matters if you plan to moonlight.
Source: Michigan Board of Medicine (LARA Bureau of Professional Licensing)
State income tax
Flat income tax: 4.25% for 2026. Twenty-four cities levy income taxes. Detroit's 2026 rate is 2.4% for residents and 1.2% for nonresidents working in the city.
Source: taxfoundation.org
Match Day to your first loan payment
Assumes you enroll in RAP or IBR when the grace period ends, recertify once a year, and file each tax return by April. Your servicer's dates govern.
Mid-March
Match Day
You learn where you'll train. Your program sends its residency (GME) agreement and onboarding steps.
March–April
Michigan training license
Apply for your Michigan training license as soon as your program sends instructions. Applications often need school records and background checks that take weeks.
April–June
Credentialing and onboarding
Hospital credentialing, health screening, payroll and benefits forms, and a DEA registration if your program requires one.
Late June–July 1
Move and start
Intern orientation usually starts in the last week of June. When the first paycheck arrives depends on the hospital's payroll schedule, so budget for a few weeks of moving costs without one.
About 6 months after graduation
Federal loan grace period ends
Payments start 6 months after you leave school. Choose a plan before then, or request residency forbearance, during which interest accrues and months don't count toward PSLF.
First year of payments
Payments use last year's income
RAP and IBR use the adjusted gross income on your most recent tax return, which for most new residents is a student year. Payments rise after you recertify with a resident's income.
DO residents apply to the separate Michigan Board of Osteopathic Medicine and Surgery for an Osteopathic Physician Educational Limited License with the same fees, renewal cycle and processing time.
Related
- Compare RAP, IBR and Tiered Standard on a resident's income
- Michigan physician non-compete law, for when you sign your first attending contract
- All states
Outlook
Dated forecasts, scored when they resolve. All forecasts and the track record →
General information, checked on the date above. Board requirements and fees change; confirm with the Michigan Board of Medicine (LARA Bureau of Professional Licensing)and your program before you apply.