FAQ
Estimated Payments
1. Do I need to make estimated payments?

The City Tax Act requires that a person must make quarterly estimated payments if the person's income tax liability, after credits, will be $100 or more for the year.  If you are required to make estimated payments use form 5123.

Special note for people required to file estimates. You may owe penalty and interest for underpayment, late payment or for failing to make estimated tax payments.

For more information view form 5123 instructions.

2. When are estimated tax payments due?

Quarterly tax payments are due April 15, 2019, June 17, 2019, September 16, 2019 and January 15, 2020.

3. What happens if I fail to file and make the required estimated tax payments?

Failure to file and make the required estimated tax payments may result in an assessment issued by the City Income Tax Administration for penalty and interest.

Interest is 1 percent above the adjusted prime rate. Penalty is 25 percent of the tax due (minimum $25 per quarter) for failing to file estimated payments or 10 percent (minimum $10 per quarter) for failing to pay enough with your estimates or paying late.

4. Why am I being charged penalty and interest?

The City Income Tax Administration follows the City Tax Act guidelines for estimated tax requirements. To avoid penalties for failure to make estimated tax payments, your total tax paid through credits and withholding must be 70 percent of your current year tax or 70 percent of your prior year tax.

Interest is 1 percent above the adjusted prime rate. Penalty is 25 percent of the tax due (minimum $25 per quarter) for failing to file estimated payments or 10 percent (minimum $10 per quarter) for failing to pay enough with your estimates or paying late.

View current interest rate

5. How do I submit my estimated tax payments?

Complete a City Estimated Individual Income Tax Voucher (Form 5123). Mail this voucher with payment to:

Michigan Department of Treasury
City Tax Administration
P.O. Box 30738
Lansing, MI 48909