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New Local Income Taxes in Michigan

BY: APA Staff | 08/23/18

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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