Michigan follows the IRS guidelines for estimated tax requirements. Based on the 2009 IRS estimated income tax requirements, to avoid penalties for failure to make estimated tax payments in 2009, your total tax paid through credits and withholding must be:

90 percent of your total 2009 tax;
or 100 percent of your total 2008 tax
or 110 percent if your 2008 adjusted gross income is more than $150,000 ($75,000 for married filing separately).

Penalty is 5 percent per month up to 25 percent of the tax due or 10% or 25% for filing late or failing to pay enough with your estimated payments. Interest is 1 percent above the prime rate.