Michigan Porch

Porch Notes

This city has a local income tax

Money and taxes

city income tax taxes michigan

Most Michigan towns don’t have a local income tax, but a few cities do. If you live in one of those cities, the standard rate is 1% of your earned income. If you live somewhere else but work inside the city, you pay half that — 0.5% — on the income you earn there.

The tax is on wages and business income, not Social Security or most retirement income. It follows the city limits, not your mailing address or school district, so it’s worth checking whether a home or job is actually inside the city before you buy or take work there.

City income tax is separate from your state and federal taxes. Returns are usually due around the end of April, and employers may withhold the tax if you work in the city. If they don’t, you may need to make payments yourself.

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