City of Muskegon Income Tax
The City of Muskegon Income Tax Department is responsible for the collection of income taxes owed to the City, processing of income tax returns, and issuing of refunds and assessments in accordance with our ordinance. Our department is also responsible for the implementation of compliance programs, income tax ordinance enforcement, account reconciliations and the collection of delinquent taxes.
Our mission is to administer and collect the municipal income tax for the City of Muskegon, as prescribed by our ordinance, in an efficient and thorough manner. We are committed to provide professional and courteous support to all resident and non-resident taxpayers and tax preparers, upholding the high level of confidentiality mandated. We strive to provide timely and appropriate reports regarding total income tax collections to internal and external persons, departments, divisions and agencies as warranted.
Our knowledgeable staff is available, either in person or by phone, to assist you with city income tax related questions or problems you may have during normal business hours. Our office is open 8:00 am to 5:30 pm Monday through Thursday, 231-724-6770.
The City of Muskegon collects a tax of 1.00% on all earnings including salary, bonus, separation and incentive payments, tips, commissions and other compensation for service rendered, as well as on income of residents earned outside the city. 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.
Employers within the city are required to withhold income tax on employee compensation and remit the tax to the city either monthly or quarterly, as specified by ordinance.
Am I a Muskegon resident subject to the tax?
View the Muskegon Street Directory.
Due Dates
Tax returns are due on or before April 30th every year, except when April 30th falls on a Saturday or Sunday or within four months after the end of the fiscal year accepted by the Internal Revenue Service. Seventy percent (70%) of the taxpayer’s estimated tax must be paid by the due date on the fourth payment voucher. When an extension is required, it may be requested by filing a copy of the Federal extension request by the due date of the return. If an extension is granted and a tax is due, a tentative return and payment of the estimated tax must be submitted by the due date of the original return.
Estimated Tax
Every resident or non-resident who expects to have taxable income, and their employer does not withhold for the City of Muskegon, must pay estimated income tax if that income will be at least $10,000 for residents or $20,000 for non-residents or 70% of the prior year tax. Payments are due at the end of each quarter.
Penalty and Interest will apply if required estimated payments are not paid by the due dates.
How to Pay Your Income Taxes
Pay by Check or Money Order
All checks should be addressed to ‘City of Muskegon.’ Write the last four digits of your SSN (social security number) on the check or money order, and mail it in with a copy of your tax return/voucher.
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 paper return filed with our office.
Fees: 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
Income Tax Forms
Looking for income tax forms for employers, individuals, prior years, and more? Visit our Income Tax Form page.
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.