Key Changes for City of Detroit Business Taxes

• Beginning January 1, 2027, Treasury will implement City of Detroit business taxes into GenTax. City of Detroit taxpayers and third parties will be able to use the Michigan Treasury eServices web platform to file returns, make payments, and manage tax accounts online.
• Revised forms, standardizing tax reporting for multiple cities administered by Treasury.
• Extension requests will be standardized. Penalty and interest will continue to accrue on any unpaid tax beginning on the original due date of the return.
• Sending City of Detroit tax returns:
  • All amended City of Detroit business tax returns must be submitted electronically.
  • Electronic filing is the quickest and preferred method:
    • Online, directly with Treasury — at no cost.
    • With approved tax preparation software (where available).
  • If needed, tax returns may also be submitted by mail.
• Sending City of Detroit tax payments:
  • Electronic payment is the most secure and preferred method:
    • Online, directly with Treasury.
      • Payment through a checking or savings account are no cost options.
      • Payment by debit card, credit card, and/or digital wallet are available and incur fees.
    • With approved tax preparation software when filing a return (where available).
    • Electronic Funds Transfer (EFT) Credit transactions. Treasury is updating Form 2329, Instructions for Payments of Michigan Business Taxes Using EFT Credit, to include tax codes for Partnership Tax and Fiduciary Income Tax (Estates and Trusts). All other City of Detroit tax codes will remain the same:
      
      

      Tax Type Code	City of Detroit Payment Type
      02110	Corporate Income Tax - Estimated Payment
      02610	Corporate Income Tax - Annual Payment
      01115	Income Tax Withholding - Monthly/Quarterly Payment
      01120	Income Tax Withholding - Annual Payment
      03070	Partnership - Estimated Payment
      03017	Partnership - Annual Payment
      01770	Estates/Trusts - Estimated Payment
      01717	Estates/Trusts - Annual Payment

  • If needed, payments may also be submitted by mail using a check.
  • In-person and phone payments will not be accepted.
• Bulk e-File Changes for City Employer Withholding Tax:
  • Effective October 30, 2026, Michigan Treasury Online (MTO) will no longer support bulk filing for City of Detroit Employer Withholding Tax returns (Forms 5323 and 5321).
    • The final tax period available to be filed through MTO will be September 2026 — due on or before October 15, 2026.
  • On November 2026, bulk filing for City of Detroit Employer Withholding Tax will be available in the new Michigan Treasury eServices web platform.
    • The format of the uploaded file is not changing.
    • More ways to access the bulk file pathway:
      • Guest Services (non-logged in)
      • Logged-In Services
        • Sign-in information is not changing; use your MTO username and password.
  • Transition support.
    • Instructions for City bulk filing will be available before November 12, 2026.
    • Sign up to receive City of Detroit email communications from Treasury, including bulk filing transition resources.
    • For software developers: an email communication will be sent on September 1, 2026 to all software developers who submitted a tax year 2026 Michigan Letter of Intent (Form 4430) outlining expected changes for the 2027 tax year.
• City of Detroit business tax return changes:
  • City of Detroit Corporate Income Tax — annual tax return
    • New schedule for S Corporations to increase accuracy and streamline return/refund processing.
  • City of Detroit Employer Withholding Tax — annual reconciliation return
    • Required for all taxpayers.
    • Redesigned, scales for multiple cities and includes integrated W-2 information for streamlined reporting.
  • City of Detroit Fiduciary Income Tax (Estates and Trusts)
    • Electronic filing availability.
  • City of Detroit Partnership Tax — annual tax return
    • Redesigned, scales for multiple cities and includes a partnership schedule that permits electronic filing.

Michigan Treasury eServices will allow City of Detroit taxpayers and third parties access to:

• Make City of Detroit tax payments electronically, directly with Treasury using a checking or savings account, debit card, credit card, or digital wallet transaction.
  • The preferred way to send tax money.
  • An easy and secure option.
  • Checking or savings account transactions are free, other options available for a fee.
• File City of Detroit tax returns electronically, directly with Treasury.
  • The preferred way to send tax returns.
  • An easy and secure option.
• Submit bulk City of Detroit tax returns (with or without payment).
• Check the status of your City of Detroit tax refund.
• View City of Detroit tax information online.

Third parties include tax professionals, tax preparers, service providers, non-liable family members, and friends. When a third party is communicating with Treasury about account-specific matters, the taxpayer must provide consent.

Direct Interactions (e.g., in-person meetings, phone calls, email, web messaging, etc.)

• Verbal: During a meeting or phone call where both the taxpayer and third party are present, the taxpayer can give Treasury permission to disclose information to the third party on a one-time basis. However, this authorization is temporary and expires when the interaction ends.
• Tax return: Taxpayers may authorize Treasury to discuss a specific return with the tax preparer identified on the return by selecting the designated preparer authorization checkbox. This authorization is limited to matters related to the processing of that return, including refund and payment status and related correspondence.
• Power of Attorney: A Form 151, Authorized Representative Declaration/Power of Attorney (POA) is required for matters outside the scope of the preparer checkbox including audit, assessment, collection, appeals, or broader representation before Treasury.

Indirect Interactions: Web Platform Access

• Several essential functions through Michigan Treasury eServices do not require specific permission for third parties to view or send tax information including checking refund status, making a payment, and responding to a letter.
• To view and send protected tax account information through Michigan Treasury eServices, all third parties must request access to the tax account and be approved by the taxpayer.
  • POA authorization is not required for a third party to use the web platform.
  • POA authorization does not bypass the required connection process for a third party.

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