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Montanaworking inMichigan
Standard — file nonresident return if onsite

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)

If you physically work in Michigan, file a nonresident Michigan return (tax rate: Flat 4.25%). Then file your Montana return and claim the Schedule V credit so you don't get taxed twice on the same income.

Employer Obligations (What Your Employer Must Withhold & Remit)

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.

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Related guides

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

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.