New Local Income Taxes in Michigan
Two cities in Michigan—Benton Harbor and East Lansing—recently voted in favor of implementing new income taxes. In 2019, there will be 24 cities in Michigan that have a local income tax.
Benton Harbor Income Tax
A voter-approved income tax took effect in Benton Harbor on January 1, 2018. The city previously rejected a similar proposal in 2013. The Benton Harbor income tax rate is 1% for residents and 0.5% for nonresidents. The exemption value is $750. Employers file returns and make payments quarterly or monthly if withheld tax is more than $100.
East Lansing Income Tax
On August 7, 2018, voters approved an income tax. A similar proposal failed to pass last year. Effective January 1, 2019, the East Lansing income tax rate will be 1% for residents and 0.5% for nonresidents. The exemption value will be $600. The tax is set to expire in 12 years (on January 1, 2031), unless it is reauthorized by voters.
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