Big Rapids local tax guide
Who pays Big Rapids's local tax
Residents owe 1% on all wages, including jobs in Big Rapids Township or at plants elsewhere in Mecosta County. Nonresidents, including the many Ferris State employees who live in surrounding townships or farther away, owe 0.5% on wages for work done inside the city. A nonresident who teaches online from a home outside Big Rapids owes nothing for those days. Residents who also pay another Michigan city's income tax can credit it up to Big Rapids' 0.5% nonresident rate.
Big Rapids' income tax
Big Rapids, with about 10,600 residents, has taxed income since 1970 and administers the tax at City Hall. It uses the default rates in Michigan's uniform city income tax ordinance, 1% for residents and half that for nonresidents.
A university town of this size draws a large commuting workforce, so the nonresident rate carries much of the load. Each return allows a personal exemption for each person claimed. Our numbers apply the rate to full wages, so the actual tax will be somewhat lower.
Take-home pay in Big Rapids at $75,000
A single filer at $75,000 pays $7,670 in federal tax, $2,937 to Michigan, $4,650 in Social Security, and $1,088 in Medicare. A Big Rapids resident adds $750 of city tax and takes home $57,905.
A Ferris employee living in Big Rapids Township pays $375 and keeps $58,280. A worker untouched by city tax keeps $58,655. At $60,000, a resident pays $600 to the city and keeps $47,491.
Big Rapids among Michigan's taxing cities
Big Rapids is the only taxing city in Mecosta County. To the south, Grand Rapids charges 1.5%, which costs a $75,000 resident $1,125, and its neighbor Walker charges the same 1% as Big Rapids. Muskegon, to the southwest, also charges 1% and 0.5%.
Compared with Lansing, a city about ten times its size, Big Rapids charges identical rates, so a $75,000 resident pays the same $750 in either place.
Tips for Big Rapids paychecks
Residents with out-of-town jobs: cover the tax
An employer in Reed City or Cadillac has no Big Rapids office and may not withhold the city tax. Quarterly estimated payments keep the resident tax from piling up until you file.
Faculty who commute: track remote days
Nonresident employees owe Big Rapids tax only for work done in the city. Keep records of online teaching or research days worked from home.
Check the township line
Big Rapids Township, which borders the city, does not levy an income tax. A Big Rapids mailing address does not mean you live in the city.