The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
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