INCOME TAX Rate changes July 1
Michigan's income tax rate drops to 3.9%, effective July 1,
2004. The reduction marks the final phase of the 0.5 percent reduction enacted
in 1999. The reduction was delayed from January 1, 2004, to help balance the
state budget.
The Michigan Department of Treasury previously issued
withholding schedules for both the 4% (January 1-June 30, 2004) and 3.9% (July
1-December 31, 2004) withholding rates. To view and print the withholding
schedules click on the following:
Withholding Tax Table
- For payroll issued July 1, 2004 - December 31, 2004
Withholding Tax
Table - For payroll issued January 1, 2003 - June 30, 2004
| Who is
required to register for withholding tax? |
Every employer in this state who is required to withhold federal income tax
under the Internal Revenue Code, must be registered for and withhold Michigan
income tax. Nonprofit organizations that are exempt from income tax, such as
charitable, religious and governmental organizations, must withhold tax from
compensation paid to their employees. Employers located outside Michigan that
have employees who work in Michigan must register and withhold Michigan income
tax from all employees working in Michigan.
| To
Register for Withholding Tax |
Applications must be mailed or faxed to:
Registration Section
Department of Treasury
Treasury Building
Lansing, MI 48922
Fax: 517 636-4520.
| Other
Helpful Information |
Frequently Asked Questions
For questions about withholding taxes, call 517-636-4730.
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