Detroit city income tax calculator.

The rates the City publishes

Detroit is one of the Michigan cities that levy a personal income tax. The City's Income Tax Information page lists the rates for 2013 and subsequent years, "unless otherwise notified":

The same page keeps the earlier notice, which makes it easy to see what changed. In 2012 the resident rate was 2.45% and the nonresident rate was 1.225%; the 2013 notice cut both slightly and left the corporate rate alone.

One honesty note. The rate notice on the City's page dates from 2013, and individual returns for 2015 and later are filed with the State of Michigan, whose Treasury pages are where the City sends people for current forms. Those state pages block automated access, so this page cannot confirm they still match. If your return or payroll shows a different rate, trust the Treasury and your employer's payroll notice over this page.

Residents, nonresidents and Schedule N

Residents are taxed at the higher rate. Nonresidents are taxed at half that rate, and the Schedule N allocation limits it to work done in the city. A nonresident who works less than 100% of the time in Detroit completes Schedule N on page 2 of Form D-1040 (NR) to allocate income between Detroit and elsewhere. The share you enter above is that allocation. A nonresident working half the year in the city is taxed on half the wages at 1.2%, which is why a part-time commuter's bill is often a fraction of what a full-time resident pays.

The proof Detroit asks for

Since tax year 2005 the City has required nonresidents who allocate less than 100% of their income to show it. The return must come with a letter from the employer verifying lines 1 and 2 of Schedule N, signed by a named person with a title and phone number on official letterhead, plus a work log showing days or time worked in and out of Detroit. Without both, the return is sent back and refunds are delayed.

The City also closes an obvious loophole. Regulation 13.2 of the City Income Tax Ordinance says "The mere fact that a non-resident employee takes work home with him and performs such work at his home does not permit allocation of compensation." Nonresidents who are based in Detroit and work at home cannot count those days as days worked outside Detroit.

Worked examples (hypothetical wages, real rates)

Resident. Wages of $52,000 at 2.4% give $1,248.00 a year, about $48.00 per biweekly paycheck.

Nonresident, fully in Detroit. The same $52,000 at 1.2% is $624.00.

Nonresident, 40% in Detroit. Only $20,800 is allocated to the city, so the tax is $249.60. Moving from 100% to 40% of time in the city cuts a nonresident's bill by 60%, which is why the employer letter and work log are required.

Compare a resident and a nonresident on the same pay and the resident pays exactly double, because the nonresident rate is half the resident rate.

Fitting Detroit into a paycheck estimate

The Michigan paycheck calculator states that city income taxes are separate from state withholding and are not included. Calculate the Detroit figure here, divide by your pay periods, and subtract it from the state calculator's net pay. The figure here is an annual estimate, not the amount your employer withholds.

Where the City's page points you

For 2015 and later, individuals file with the State of Michigan, and electronic filing is available. Returns for 2014 and earlier went to the City's Income Tax Division, and corporate, partnership and fiduciary returns have been administered by the Michigan Department of Treasury since January 2017, which also collects employer withholding. The City's page lists a personal exemption of $600 per person, reduced from $750 in tax year 2005.

Who this is for, and what it does not cover

It is for wage earners estimating Detroit's tax. It does not apply the $600 exemption, calculate credits for taxes paid to other localities (for example a Detroit resident who also pays another city's tax), handle self-employment or investment income, or work out corporate tax. Use the City and Treasury pages for those.

FAQ

What is the Detroit city income tax rate?

The City lists 2.4% for resident individuals, 1.2% for nonresident individuals and 2.00% for corporations for 2013 and subsequent years, unless otherwise notified.

Do I pay Detroit income tax if I work in Detroit but live elsewhere?

Yes, at the nonresident rate of 1.2%, on the part of your pay allocated to work in the city. If you work less than 100% of your time in Detroit you complete Schedule N on the D-1040 (NR).

What is Schedule N for Detroit nonresidents?

It is the allocation schedule on page 2 of Form D-1040 (NR). A nonresident who works less than 100% of the time in Detroit uses it to split income between Detroit and elsewhere.

What proof does Detroit require for a nonresident allocation?

A letter from the employer on official letterhead verifying lines 1 and 2 of Schedule N, with the signer's name, title and phone number, and a work log showing days or time worked in and out of Detroit.

Can I allocate days I work from home to outside Detroit?

Not if you are a nonresident based in Detroit. Regulation 13.2 of the City Income Tax Ordinance says taking work home does not permit allocation of compensation.

Where do I file a Detroit income tax return?

The City's page says individual returns for tax year 2015 and later are filed with the State of Michigan, and returns for 2014 and earlier are filed with the City's Income Tax Division.

How big is the Detroit personal exemption?

The City's page says personal exemptions were reduced from $750 to $600 effective tax year 2005.

Does the Michigan paycheck calculator include Detroit tax?

No. It says city income taxes are separate from state withholding and are not included, so subtract the Detroit figure from this page yourself.

Sources

Retrieved 2026-10-20. Each link was opened and checked against the claim next to it.

• City of Detroit: Income Tax Information: Resident 2.4%, nonresident 1.2% and corporate 2.00% rates for 2013 and later, 2012 rates, the $600 exemption, Schedule N documentation, Regulation 13.2.
• City of Detroit: Income Tax: Individual returns for 2015 and later filed with the State of Michigan; business returns administered by Michigan Treasury since January 2017.