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Minnesotaworking inMichigan
Reciprocity — home state withholds for you

Michigan

Work State Tax Rate
Flat 4.25%
Withholding Starts
N/A (reciprocity)
Law Last Updated
No change 2025/2026

Employee Obligations (Which Returns YOU Must File)

Minnesota has a reciprocity agreement with Michigan. If your only income from Michigan is wages, salary, tips, or commissions, file your Minnesota return only — no Michigan return needed. Give your Michigan employer your reciprocity form (Form MWR) each year.

Employer Obligations (What Your Employer Must Withhold & Remit)

Reciprocity applies. If the employee provides the reciprocity form (Form MWR), withhold Minnesota tax instead of Michigan tax. Must still register for Michigan unemployment insurance. If the employee provides Form MWR, withhold Minnesota tax instead of Michigan tax. Submit the MWR to the MN Department of Revenue by March 31. Register for Michigan unemployment. Unemployment ranges from 0.06% to 12.2% on the first $9,500 of wages.

City & Local Income Taxes (Extra Filings Beyond the State Return)

24 Michigan cities tax nonresidents at reduced rates. Detroit charges 1.2%, Grand Rapids 0.75%, Saginaw 0.75%, Highland Park 1%. Standard cities charge 0.5%. Reciprocity covers state tax only — city taxes still apply.

Reciprocity Agreement — File Home State Only for Wages

Minnesota has a reciprocity agreement with Michigan. For wage income, you only need to file your Minnesota return. Give your employer the reciprocity form (Form MWR) each year to avoid Michigan withholding.

Employee/Individual Tax Source: https://www.michigan.gov/taxes/iit
Row last reviewed: May 7, 2026Home state credit form: Schedule M1CR

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.