Quick answer: 24 Michigan cities levy a local income tax. Most charge 1% to residents and 0.5% to non-residents who work there. The exceptions are Detroit (2.4% / 1.2%), Highland Park (2% / 1%), and Grand Rapids and Saginaw (1.5% / 0.75%). All of them follow the same state law, the Uniform City Income Tax Ordinance, so the rules work the same way everywhere.
Full list of Michigan cities with income tax
| City |
Resident rate |
Non-resident rate |
| Albion |
1% |
0.5% |
| Battle Creek |
1% |
0.5% |
| Benton Harbor |
1% |
0.5% |
| Big Rapids |
1% |
0.5% |
| Detroit |
2.4% |
1.2% |
| East Lansing |
1% |
0.5% |
| Flint |
1% |
0.5% |
| Grand Rapids |
1.5% |
0.75% |
| Grayling |
1% |
0.5% |
| Hamtramck |
1% |
0.5% |
| Highland Park |
2% |
1% |
| Hudson |
1% |
0.5% |
| Ionia |
1% |
0.5% |
| Jackson |
1% |
0.5% |
| Lansing |
1% |
0.5% |
| Lapeer |
1% |
0.5% |
| Muskegon |
1% |
0.5% |
| Muskegon Heights |
1% |
0.5% |
| Pontiac |
1% |
0.5% |
| Port Huron |
1% |
0.5% |
| Portland |
1% |
0.5% |
| Saginaw |
1.5% |
0.75% |
| Springfield |
1% |
0.5% |
| Walker |
1% |
0.5% |
Rates are as published for 2026. Cities can change them by vote, so confirm with the city before filing. Detroit's rates and its $600 exemption are confirmed in the 2026 City of Detroit withholding guide.
How Michigan city income tax works
Residents pay on all income. If you live in one of these cities, its tax applies to your wages wherever you earn them.
Non-residents pay half the rate, only on work done in the city. The non-resident rate is always half the resident rate, and it applies only to wages for work physically performed inside the city.
Wages are taxed before 401(k) contributions. City tax doesn't follow the federal treatment of retirement contributions, so your 401(k) won't reduce it.
Exemptions are small. Each personal exemption reduces city taxable income by a fixed amount, typically $600 in Detroit, far less than the state's $5,900 exemption.
Most retirement income is exempt. Social Security and most pensions aren't taxed by Michigan cities.
If you live in one taxing city and work in another
You don't pay full tax to both. You pay the non-resident rate to the city where you work, and your home city gives you a credit for that tax against what you owe it as a resident. The credit is limited under the state's uniform rules, so check your home city's resident return instructions for the exact amount. Detroit's withholding guide, for example, has employers withhold Detroit tax at 2.4% minus the other city's non-resident rate.
What about the suburbs?
Most Michigan suburbs don't levy a city income tax. Living in a suburb such as Royal Oak or Ferndale and working remotely means you pay only the 4.25% state income tax. If you commute into a taxing city, you pay its non-resident rate on the days you work there.
To estimate your total, including federal tax, Michigan's 4.25% and city tax, use the Detroit income tax calculator. For non-Detroit cities, you can follow the same method with your city's rate.
What the tax costs at common salaries
| Salary |
1% resident city |
1.5% resident city |
Detroit resident (2.4%) |
| $40,000 |
about $394 |
about $591 |
about $946 |
| $60,000 |
about $594 |
about $891 |
about $1,426 |
| $90,000 |
about $894 |
about $1,341 |
about $2,146 |
Figures subtract one $600 exemption. Non-residents pay half of these amounts on wages earned in the city.
Choosing where to live
If you're deciding between a taxing city and a nearby suburb, the city tax is a real yearly cost. On a $60,000 salary, living in a 1% city instead of a suburb without a city tax costs about $594 a year. That might be worth it for a shorter commute or lower rent, but it belongs in the comparison.
Who has to file a Michigan city return
You generally file a city return if you:
- Live in a taxing city and have taxable income above the exemption amount
- Work in a taxing city as a non-resident and had city tax withheld, or should have
- Moved into or out of a taxing city during the year
Even if your employer withheld the right amount, most cities still expect an annual return from residents. Each city's tax office publishes its own forms and deadlines, usually April 30 for city returns, while Detroit's return is handled through Michigan Treasury.
How to check which city you're in
Your mailing address isn't always your city for tax. Some addresses use a city's name for mail but sit in a township with no income tax, and the reverse happens too. Check your property tax bill or your city's website if you're unsure.
Retirees
Most Michigan cities don't tax Social Security, pensions or retirement account distributions. If your only income is retirement income, you may not owe city income tax at all, even living in a taxing city.
Quick checklist
- Check whether you live in a taxing city and whether you work in one.
- Give your employer the city's withholding certificate with your residency.
- If you work in a different taxing city, look up your home city's credit rules.
- File a city return each year if required, and keep your W-2 local boxes with your records.