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Indiana
Employee Obligations (Which Returns YOU Must File)
Michigan has a reciprocity agreement with Indiana. If your only income from Indiana is wages, salary, tips, or commissions, file your Michigan return only — no Indiana return needed. Give your Indiana employer your reciprocity form (MI-W4) each year.
Employer Obligations (What Your Employer Must Withhold & Remit)
Reciprocity applies. If the employee provides the reciprocity form (MI-W4), withhold Michigan tax instead of Indiana tax. Must still register for Indiana unemployment insurance. Register for withholding and unemployment. Must also withhold county income tax. Unemployment applies to the first $9,500 of wages.
City & Local Income Taxes (Extra Filings Beyond the State Return)
All 92 Indiana counties charge income tax on nonresidents ranging from 0.5% to 2.9%. Combined state plus county can reach approximately 5.9%. The M1CR credit does NOT cover county taxes. Separate county withholding is required.
Reciprocity Agreement — File Home State Only for Wages
Michigan has a reciprocity agreement with Indiana. For wage income, you only need to file your Michigan return. Give your employer the reciprocity form (MI-W4) each year to avoid Indiana withholding.
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This is general information, not tax or legal advice. Laws change frequently. Always consult a licensed CPA or tax attorney for your specific situation. All information researched as of March 21, 2026.