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

You are required to make estimated payments if:

You expect to owe more than $100 when you file your City Income Tax Return

AND

Your withholding is less than 70% of your total 2021 or 2020 tax (whichever is lower)

Underpayment or failure to make estimated tax payments may result in charges for penalty and interest.

For more information (including payment due dates and instructions for calculations) view form 5123, 2021 City Estimated Income Tax for Individuals instructions.

2. When are estimated tax payments due?

Quarterly tax payments are due April 15, 2021, June 15, 2021, September 15, 2021 and January 18, 2022.

View form 5123, 2021 City Estimated Income Tax for Individuals instructions

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

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

Penalty is 25 percent of the tax due (minimum $25 per quarter) for failure to make 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 failure to make 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