Saginaw has a city income tax — and it's on the higher side

Saginaw is one of about two dozen Michigan cities with its own income tax, and its rate runs higher than most. Live inside the city and you pay 1.5% of your earned income to Saginaw; live elsewhere but work in the city and you pay 0.75%. Most Michigan cities with an income tax charge half that — 1% and 0.5% — so Saginaw sits in the higher group, alongside Grand Rapids. The tax is on wages and business income, not on Social Security or most retirement income.

What counts is the city limits, not your mailing address. Lots of people with a “Saginaw” address actually live in Saginaw Township or another community next door, and they don’t owe the city tax — so it’s worth knowing which side of the line a house is on before you buy. The city collects the tax separately from your state and federal returns, on its own form (the S-1040), usually due at the end of April. You file once your income passes a small threshold. The City of Saginaw’s income tax office, at City Hall, has the forms and details.