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Michigan Income Tax
Michigan has a flat tax of 4.35% on all income. This tax rate will remain constant at least until September 30, 2011. Michigan tax returns are due on April 15th. Several localities also impose income taxes on top of the state tax. These additional taxes require taxpayers to file different forms depending on the locality.
Michigan Tax Filing Guide
Here are detailed instructions for filing taxes in the state of Michigan.
Consider using TurboTax to E-File your Michigan taxes.
Michigan Residents
If your permanent home was in Michigan, you are a Michigan resident. A permanent home can be defined as the place you come back to after going away. A temporary absence from your permanent home, such as spending the winter in a southern state, does not make you a part-year resident of the state that your permanent home is in.
If you are a Michigan resident you need to file a return with Michigan, if you had to file a federal return. You should use Form MI-1040 to file this return. See the provided instructions for additional assistance or information on filing your return.
Related Tax Forms
- Form MI-1040 - Michigan Individual Resident Income Tax Return
Part-Year Michigan Residents
If you moved in or out of Michigan during the tax year, you are a part-year resident. Michigan part-year residents need to pay tax on all income earned, received, or accrued while they were living in Michigan. To file a Michigan return as a part-year resident attach your Schedule NR to Form MI-1040. For additional information on how to file a Michigan return as a part-year resident refer to MI-1040 Instructions. Please note you made need to pay taxes on income that is derived from Michigan sources while you are a nonresident. For more information check the Nonresident sections for Michigan.
Related Tax Forms
- Form MI-1040 - Michigan Individual Resident Income Tax Return
- Schedule NR - Michigan Individual Part-year and Non-resident Schedule
Michigan Residents who work in another state
If you are a Michigan resident and earned income from a Canadian province or another state (besides Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin) the income you earned will be taxed by Michigan. This is because all income earned by Michigan residents is subject to Michigan taxation, no matter where it is earned. The only exception is income earned from out-of-state business activity. To avoid facing dual taxation on income earned outside of the state of Michigan you may claim a credit on your Michigan return using Schedule 2. You may not use such a credit however with Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin because of reciprocal agreements that Michigan has with these states that state that those states won’t tax Michigan residents and Michigan will not tax their residents. If one of these states does hold income that was earned in that state in error from a Michigan resident, it becomes the responsibility of the Michigan resident to get a refund by filing a nonresident tax return.
For more information on reciprocal agreements with certain states see RAB 1988-17 (attached below).
Related Tax Forms
- Schedule 2 - Michigan Nonrefundable Credits Schedule
- RAB 1988-17 - Michigan Reciprocal Agreements
- Form MI-1040 - Michigan Individual Resident Income Tax Return
Non-Residents who work in Michigan
If you are a nonresident of Michigan you need to file a return for all salary, wages, and compensation for work performed in Michigan. If you are a nonresident of Michigan you must file a return using Form MI-1040 and Schedule NR.
If you are a resident of Illinois, Indiana, Kentucky, Minnesota, Ohio, or Wisconsin the above does not apply to you because you will not be taxed by Michigan due to reciprocal agreements with your state. Please note that these agreements only pertain to salaries, wages and other employee compensation. All other taxable income that comes from Michigan sources will still be taxed by Michigan. For more information on reciprocal agreements see RAB 1988-17 (attached below). For more information on what counts as taxable income see List of Taxable Income (attached below). If you are a Illinois, Indiana, Kentucky, Minnesota, Ohio or Wisconsin resident and Michigan is holding income that was earned in Michigan in error, you will need to file Form MI-1040 and Schedule NR to get a refund.
Related Tax Forms
- Taxable Income - Michigan Taxable Income Sources
- Schedule NR - Michigan Individual Part-year and Non-resident Schedule
- RAB 1988-17 - Michigan Reciprocal Agreements
- Form MI-1040 - Michigan Individual Resident Income Tax Return
Non-Residents who sold property in Michigan
All gambling winnings (including prizes won from Michigan casinos or racetracks) must be reported to Michigan using Form MI-1040, regardless of residency. This is because the reciprocal agreements that exist for wages and salaries with certain states do not apply for gambling winnings. Additionally nonresidents must file a Michigan income tax return for all other Taxable Income derived from Michigan sources. To find out what qualifies as Taxable Income see the List of Taxable Income (attached).
Related Tax Forms
- Form MI-1040 - Michigan Individual Resident Income Tax Return
- Schedule NR - Michigan Individual Part-year and Non-resident Schedule
Michigan State Tax Forms
- Schedule 2 - Michigan Nonrefundable Credits Schedule
- Taxable Income - Michigan Taxable Income Sources
- Form MI-1040CR - Michigan Homestead Property Credit Form
- Form MI-1040CR-5 - Michigan Farmland Preservation Credit Form
- RAB 1988-17 - Michigan Reciprocal Agreements
- Form MI-1040 - Michigan Individual Resident Income Tax Return
- Schedule 1 - Michigan Additions and Subtractions Schedule
- Schedule NR - Michigan Individual Part-year and Non-resident Schedule
- Form 4 - Michigan Application for Extension to File
Relevant Links
- State of Michigan Tax Website - Official Site
- State of Michigan E-File Service - Offered by Michigan's Official Website
- Additional Tax Forms - A Comprehensive Collection of Michigan Tax Forms
Michigan Mailing Address
Wondering where to mail your Michigan taxes? Here's the address:Refund, credit, or zero returns:
Michigan Department of Treasury
Lansing, MI 48956
Payment:
Michigan Department of Treasury
Lansing, MI 48929
Michigan Sales Tax
Michigan has a 6% sales tax. There are no local sales taxes in Michigan.
