Michigan residents who earn wages in another state are subject to Michigan income tax but may be entitled to a credit for taxes paid to the other state. Residents of states having a reciprocal agreement with Michigan (Illinois, Indiana, Kentucky, Ohio, Wisconsin, and Minnesota) are not required to pay tax to Michigan on income earned in Michigan. They pay tax to their state of residency. Michigan residents working in reciprocal states should claim an exemption from that state(s) income taxes.

View information on reciprocal agreements in the MI-1040 instruction booklet.