Michigan teacher pay has fallen more than any state since 1995, MSU report finds 

Michigan has experienced the largest decline in teacher salaries of any state over the past three decades, while nearly three-quarters of Michiganders say starting teacher salaries should increase, according to a new Michigan State University report.

“Teacher Compensation in Michigan: Recent Trends and Public Opinion, 2026,” from MSU’s Education Policy Innovation Collaborative, or EPIC, finds that Michigan’s average teacher salary, adjusted for inflation, has fallen 29% since its 1995 peak — from the equivalent of $100,064 to $71,023 in 2025 dollars.

That decline is substantially larger than in any other state. Indiana had the next largest drop at 20.7%, while the national average declined 4.2% during the same period.

“Michigan schools are trying to recruit and retain teachers at a time of persistent shortages and historically high rates of teachers leaving the profession,” said Jason Burns, EPIC research specialist and lead author of the report. “They are doing it with salaries that buy almost 30% less than they did in 1995 and with a pay gap against other college-educated workers that has been widening in recent years. That is an uphill battle.”

Michigan loses ground nationally

For decades, Michigan was one of the nation’s highest-paying states for teachers. From 1970 through 2007, the state consistently ranked among the top 10 in average teacher salary.

By 2025, Michigan had fallen to 22nd in the nation.

The decline is even more pronounced for teachers entering the profession. Michigan ranked 31st nationally in starting teacher pay in 2017 but fell to 45th in 2025. The average starting salary for a Michigan teacher is now $43,093 — nearly $5,000 below the national average.

Adjusting salaries for differences in cost of living among states does little to change Michigan’s standing, according to the report.

Teachers also are losing ground compared with other professions. In 2024, Michigan teachers earned 28.8% less than other college-educated workers with similar levels of education and experience, giving Michigan the 12th-largest teacher wage penalty in the country.

Michiganders want higher teacher pay

At the same time, Michigan residents continue to express strong support for increasing teacher salaries, especially for those entering the profession.

EPIC researchers analyzed responses from a representative survey of 1,000 Michigan adults conducted through MSU’s State of the State Survey.

Nearly 72% of respondents said starting teacher salaries should increase, compared with 25.2% who said they should remain about the same and just 3% who said they should decrease.

When asked what a new teacher should earn, respondents put the average starting salary at $55,074 — nearly $12,000 more than Michigan’s current average starting salary.

Public support for increasing salaries for teachers overall was more measured. About 40% said average teacher salaries should increase, while 50% said they should stay about the same and 10% said they should decrease. Respondents said the average Michigan teacher should earn $75,300, about $4,300 more than the current statewide average.

“Michiganders have been consistent about wanting higher teacher pay, and they are most emphatic about raises for new teachers,” said Shane Turnage, EPIC research assistant and co-author of the report. “That matters because compensation is one of the levers research identifies for attracting and retaining an effective teacher workforce.”

Strong support for targeted incentives

The survey also asked Michiganders about policies that could increase teacher compensation.

More than 74% supported monetary incentives for teachers in hard-to-staff schools, while 72% supported incentives for teachers in hard-to-staff subjects. About 71% supported increased state funding for education, and nearly 67% supported establishing a statewide minimum teacher salary.

How to pay for salary increases produced less agreement. A majority — 55.1% — supported shifting money from noneducation areas of the state budget. Far fewer supported cutting educational programs or increasing class sizes to pay teachers more.

Support for tax increases depended heavily on their size. Nearly 53% supported paying an additional $25 per year in taxes if it would generate a $900 to $1,100 increase in teacher salaries, while 44.5% supported a $50 annual increase that could raise teacher salaries by $1,700 to $2,200. Support declined as the proposed tax increase grew.

Teacher pay enters an election-year education debate

The findings come as education is poised to be a significant issue in Michigan’s 2026 elections, putting questions about teacher recruitment, retention, school funding and compensation into a broader debate over the future of the state’s public schools.

The report provides new data for those discussions by documenting where Michigan teacher pay stands relative to the past, to other states and to other professions — as well as what Michigan residents say teachers should earn and which approaches to raising compensation they support.

“Teacher pay has fallen behind other professions, behind teachers in other states and behind what Michigan teachers earned in the past,” Burns said. “The public is also telling us consistently that it wants teachers, particularly new teachers, to earn more.”