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What you need to know about Michigan city income taxes. S corporations are taxed as C corporations. Pass-through entities DO have city income tax requirements if they have a connection to any of the 24 cities. For most cities, residents and businesses pay a 1% tax rate.
What you need to know about Michigan city income taxes. S corporations are taxed as C corporations. Pass-through entities DO have city income tax requirements if they have a connection to any of the 24 cities. For most cities, residents and businesses pay a 1% tax rate.
You will need to withhold from employees who live and or work in the City of Grand Rapids.
1. Who Needs to File. You will need to file if you lived in the city during any part of the tax year and had taxable income. If you did not live in the city, but earned taxable income from within city limits you will also need to file.
As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax.
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For 2021 the following Michigan cities levy an income tax of 1% on residents and 0.5% on nonresidents.What cities impose an income tax? CityResidentsNonresidentsDetroit2.4%1.2%Grand Rapids1.5%0.75%Highland Park2%1%Saginaw1.5%0.75%
You will need to withhold from employees who live and or work in the City of Grand Rapids.
Employers must comply with many different types of local payroll taxes. These taxes are based on where your employees work and/or live. Certain types of local taxes are only imposed on employers doing business in a locality.
You must make estimated income tax payments for 2022 if you paid $101 or more with your 2021 Grand Rapids income tax return unless: 1 . 70 percent or more of your 2022 income tax is paid by tax withheld and/or tax credits.
You will need to withhold from employees who live and or work in the City of Grand Rapids.

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