Grayling has its own city income tax

Grayling is better known for the Au Sable River than for tax forms, but the city runs its own income tax office. That is the useful fact. The city’s size does not change the rule or the return.

The rate is the state standard: 1% if you live inside the city limits and 0.5% if you live elsewhere but earn taxable income inside them. Michigan’s Uniform City Income Tax Ordinance sets the framework, and the state Treasury keeps the current list of cities that use it.

The city line is the part people miss. A home can have a Grayling mailing address and still sit in Grayling Township, outside the city. A job can work the same way in reverse. Check the actual city boundary and the income location rather than deciding from the name on an envelope.

This is a separate return from your state and federal filing, handled by Grayling’s Income Tax Department. The city posts current forms, payment instructions, and the filing deadline on its own page. This overview is general information, not tax advice; for a move, split-city income, or a property near the boundary, ask the city office or a tax preparer how the rule applies to you.