The City of Muskegon Income Tax Department is responsible for:
- Collecting income taxes owed to the city.
- Processing tax returns and issuing refunds.
- Enforcing tax rules and making sure people follow them.
- Checking tax accounts and collecting unpaid taxes.
Our Mission
We aim to manage the city’s income tax fairly and efficiently by:
- Providing professional and friendly service to residents, non-residents, and tax preparers.
- Keeping all taxpayer information private and secure.
Tax Rates
- Residents pay 1% on all earnings, including:
- Wages, bonuses, tips, and other payments for work.
- Taxable income earned outside the city.
- Non-residents pay ½% on money earned from work done in Muskegon.
- Extra taxable income includes:
- Payments for vacation, sick leave, bonuses, and separation or incentive pay.
Income That is NOT Taxed:
- Social Security benefits
- Most traditional pensions and IRA distributions
Employer vs. Taxpayer Responsibilities:
All employers in Muskegon are required to:
- Deduct city income tax from employees’ paychecks.
- Send the tax payments to the city either monthly or quarterly. Learn more here.
If your employer does NOT withhold taxes, you are required to pay estimated taxes:
- You are a resident and expect to make $10,000 or more.
- You are a non-resident and expect to make $10,000 or more.
- Your estimated tax paid should be at least 70% of what you owed the previous year.
These payments are due every three months at the end of each quarter.
Example: If you live in the City of Muskegon but work for a company in Fruitport, Whitehall, Norton Shores, or another city, your employer may not withhold Muskegon income tax from your paycheck. In this case, you are responsible for making estimated tax payments to the City of Muskegon.
How to File Your Income Taxes
All forms and information are on the Tax Form page.
Pay Your Income Taxes
- Pay Online
- Pay by Check, Cash, or Money Order – All checks should be addressed to ‘City of Muskegon.’
Mail payments to:
City of Muskegon Income Tax Department
PO Box 29
Muskegon, MI 49443-0029 - Pay by Credit Card, Over the Phone
Call (231) 724-6770
Please note you cannot pay via credit card on current year taxes without a return filed with our office.
Fees: 2.8% of the payment amount, per payment transaction by credit or debit cards. - Please contact us for available payment plans and auto-pay options – (231) 724-6770
Frequently Asked Questions
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Every individual with Muskegon taxable income must file a tax return Muskegon 1040 every year, even if no tax is due. A request for refund of overpaid tax must be made on a Muskegon tax return. A taxpayer must still file an annual return even if you filed and paid a Declaration of Estimated Tax.
For partnerships doing business or located in the City of Muskegon, each partner in a partnership is required to file an individual return unless the tax is paid by the partnership. The partnership must file a partnership return.
All corporations doing business or located in the City of Muskegon, including sub chapter S corporations, must file a corporate return.
A resident is taxed 1% on all earnings, including salary, bonus, separation and incentive payments, tips, commissions, and other compensation for service rendered, REGARDLESS WHERE EARNED.
A non-resident is taxed 1/2% (.005) on earnings received from work done or services performed in the City of Muskegon. Compensation for vacations, holidays, sick time, bonuses, and separation or incentive payments are taxable on the same ratio as normal earnings.
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Payment for taxes are due when the tax return is filed.
