Live in Indiana, work in Michigan
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State income tax: $4,554 a year
Living in Indiana and working in Michigan, you'd pay about $4,554 in state income tax on $100,000 of wages.
Reciprocity agreement: you pay income tax only to your home state. Give your employer the work state's exemption form so it withholds for your home state instead.
State tax at different salaries
| Wages | To MI | To IN | Total | If you worked in IN |
|---|---|---|---|---|
| $50,000 | $0 | $2,254 | $2,254 | $2,254 |
| $75,000 | $0 | $3,404 | $3,404 | $3,404 |
| $100,000 | $0 | $4,554 | $4,554 | $4,554 |
| $150,000 | $0 | $6,854 | $6,854 | $6,854 |
| $250,000 | $0 | $11,454 | $11,454 | $11,454 |
Single filer, all wages earned in Michigan, 2026 state tax rules, standard deductions. State income tax includes Indiana's average county income tax. Other local income taxes are not included.
What to do
- Reciprocity: IN residents working in MI exempt from MI state tax on wages; file Form MI-W4 (nonresident reciprocal exemption). MI city income taxes (e.g., Detroit nonresident rate) still apply.
- Keep a record of the days you work in each state, especially if you sometimes work from home.
Local income taxes
- Indiana: Every Indiana county levies a local income tax. Indiana residents pay the rate of the county they live in on January 1. People who live in another state pay the tax of the Indiana county where they principally work on January 1, and that includes residents of reciprocity states (KY, MI, OH, PA, WI) who file Form WH-47: the reciprocity agreements cover only the state tax.
- Michigan: 24 cities levy income tax; nonresident rate is typically half the resident rate (e.g., Detroit 2.4% resident / 1.2% nonresident; Grand Rapids 1.5%/0.75%). Applies to commuters from reciprocity states too.
Special credit rules
- IN: Reverse-credit arrangements (notably AZ, CA, OR): IN nonresidents from those states claim credit on the IN nonresident return. Separately, IN county income tax is owed by nonresidents on IN-sourced wages (county of principal employment).
Frequently asked questions
Do I pay Michigan income tax if I live in Indiana?
No. Under the reciprocity agreement you pay only Indiana. IN residents working in MI exempt from MI state tax on wages; file Form MI-W4 (nonresident reciprocal exemption). MI city income taxes (e.g., Detroit nonresident rate) still apply.
Do I have to file taxes in both Indiana and Michigan?
Usually you file only one state return (a resident return in Indiana), though some states still require a nonresident return to get a refund of any wrongly withheld tax.
Will I be taxed twice?
No. Under the reciprocity agreement only Indiana taxes your wages: about $4,554 on $100,000.
Related
- Live in Michigan, work in Indiana
- Moving from Indiana to Michigan
- Moving from Michigan to Indiana
- Live in Indiana, work in Illinois
- Live in Indiana, work in Kentucky
- Live in Indiana, work in Ohio
Rules reviewed 2026-09-24 from state revenue departments and the Tax Foundation. Estimates only; confirm with each state's revenue department.