Muskegon Heights local tax guide
Who pays Muskegon Heights's local tax
A Muskegon Heights resident owes 1% on all wages, from a factory job in the city or an office job in Norton Shores alike. Nonresidents owe 0.5% on wages for work done in Muskegon Heights. If a resident works in Muskegon, Muskegon withholds 0.5% and Muskegon Heights credits all of it, since its credit limit is its own 0.5% nonresident rate. The resident then owes Muskegon Heights the remaining half of its 1% rate.
Muskegon Heights' tax basics
Muskegon Heights is a small Muskegon County city bordered by Muskegon to the north and Norton Shores to the south. Its income tax uses the default rates in Michigan's uniform city ordinance and is administered by the city, not by Michigan Treasury.
Residents may subtract a personal exemption for each person claimed on the city return. Our calculator does not, so the true tax will be slightly below the figures on this page. Retirement income such as pensions is generally outside the city tax base; the tax falls on earned income like wages.
Paycheck example: $75,000 in Muskegon Heights
Federal income tax on a $75,000 salary is $7,670 for a single filer, Michigan takes $2,937, and FICA adds $4,650 for Social Security and $1,088 for Medicare. A resident's city tax of $750 brings take-home pay to $57,905.
A nonresident pays $375 and keeps $58,280. Moving a mile south into Norton Shores and working there too would mean no city tax and take-home pay of $58,655. At $60,000, a resident pays the city $600 and takes home $47,491.
How the Heights compares
Muskegon Heights and Muskegon are the only taxing cities in Muskegon County, and they charge identical rates. Moving between them does not change your city tax rate, only which city you file with.
Against the state's larger taxing cities, Grand Rapids charges residents 1.5% and Detroit 2.4%. A $75,000 resident of Muskegon Heights pays $1,050 less in city tax than a Detroit resident.
Tips for Muskegon Heights paychecks
Working in Norton Shores? Cover the resident tax
Employers in Norton Shores or Roosevelt Park may not withhold Muskegon Heights tax. Ask payroll to withhold it or make estimated payments.
Two cities, two returns
If you live in Muskegon Heights and work in Muskegon, file a nonresident return with Muskegon if needed and a resident return with Muskegon Heights claiming the credit.
Update your certificate after a move
Moving between the Heights and Muskegon keeps your rate the same but changes which city should receive your resident tax. Give your employer a new city withholding certificate.