Michigan Cities Archived Income Tax Withholding Information

Withholding Formula (Effective Pay Period 12, 2011)

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment (s) (includes dental and vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in step 1 to obtain the adjusted gross biweekly wages.
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computer in Step 2 to obtain the adjusted gross biweekly wages.
4. 4.Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to obtain the taxable income.
   
   Exemption Allowance = $¹ x Number of Exemptions

1	$600 -	Flint, Lansing, and Pontiac
	$750 -	Battle Creek
	$600 -	Detroit, Grand Rapids
	$750 -	Saginaw

6. Apply the taxable income to the following guideline to calculate the Michigan city income tax withholding.

Compute the City Income Tax Withholding For:		By Multiplying the Taxable Income By:
City	State/City Code	Resident Percentage	Nonresident Percentage	City Tax Status (Duty Station=DS Residence=R)
Battle Creek	26/0310	1.0	0.50	DS, R
Detroit	26/1260	2.5	1.25	DS, R
Flint	26/1730	1.0	0.50	DS, R
Grand Rapids	26/2010	1.5	0.75	DS, R
Lansing	26/2700	1.0	0.50	DS, R
Pontiac	26/4020	1.0	0.50	DS, R
Saginaw	26/4350	1.5	0.75	DS, R

• Note: City tax is mandatory unless otherwise stated.
7. Divide the annual Michigan city income tax withholding by 26 to obtain the biweekly Michigan city income tax withholding.