Michigan Cities Income Tax Withholding Information (Taxes 14-03) | National Finance Center

Michigan Cities Income Tax Withholding Information

Additional Resources:

TAXES 14-03, Michigan Cities Income Tax Withholding

Previous Tax Formula

Withholding Formula Arrow Left(Effective Pay Period 01, 2014)Arrow Right

  1. Subtract the nontaxable biweekly Thrift Savings Plan contributions from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and flexible spending account - health care and dependent care deductions) from the amount computed in step 1 to obtain the adjusted gross biweekly wages.
  3. Add the taxable biweekly fringe benefits (i.e., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual wages.
  5. Determine the exemption allowance by applying the following guidelines and subtract this amount from the annual wages to obtain the taxable income.

    Exemption Allowance = $1 x Number of Exemptions

    1 $600 - Flint, Lansing, and Pontiac

    $750 - Battle Creek

    $600 - Detroit, Grand Rapids

    $750 - Saginaw

  6. Apply the taxable income to the following guideline to calculate the Michigan city income tax withholding.
  7. Compute the City Income Tax Withholding For:

    By Multiplying the Annual Wages By:

    City

    State/City Codes

    Resident Percentage

    Nonresident Percentage

    City Tax Status (Duty Station = DS Residence = R)

    Battle Creek

    26/0310

    1.00

    0.50

    DS, R

    Detroit

    26/1260

    Arrow Left2.40Arrow Right

    Arrow Left1.20Arrow Right

    DS, R

    Flint

    26/1730

    1.00

    0.50

    DS, R

    Grand Rapids

    26/2010

    1.50

    0.75

    DS, R

    Lansing

    26/2700

    1.00

    0.50

    DS, R

    Pontiac

    26/4020

    1.00

    0.50

    DS, R

    Saginaw

    26/4350

    1.50

    0.75

    DS, R

  8. Divide the annual Michigan city income tax withholding by 26 to obtain the biweekly Michigan city income tax withholding.