The City of Lansing income tax is 1% for residents on all income and 0.5% for nonresidents on income earned inside the city, filed each year on Form L-1040 with the Treasury & Income Tax Office by April 30.1Lansing, MI. Income Tax Information Corporations with business activity in Lansing pay 1% on the local portion of their income. The tax is authorized by Michigan’s Uniform City Income Tax Act (Act 284 of 1964).2Michigan Legislature. Michigan Compiled Laws – Act 284 of 1964 – City Income Tax Act
Who Owes the Tax
Three groups owe: Lansing residents, nonresidents who earn income in the city, and corporations with business activity there.3City of East Lansing. City Income Tax Act, Act 284 of 1964 – Sections 11-13
If Lansing is your permanent home, you owe 1% on all qualifying income no matter where you earn it. If you live elsewhere and commute into Lansing to work, you owe 0.5% only on income from work performed inside the city.
Part-year residents are a common sticking point. If you moved into or out of Lansing during the year, you pay the resident rate on income earned while living in the city and follow the nonresident rules for the rest. Form L-1040 has a checkbox for this situation.4City of Lansing. City of Lansing Income Tax – Form L-1040
What Income Is Taxed
Residents are taxed on most income to the same extent it’s taxable under the federal Internal Revenue Code: wages, salaries, bonuses, commissions, business profits, dividends, interest, capital gains (minus losses), rental income from real property, and income from estates and trusts.5City of East Lansing. City Income Tax Act, Act 284 of 1964 – Section 12
Nonresidents are taxed on a narrower list: compensation for work performed in the city, business profits from activity conducted in the city, and capital gains or rental income from property physically located in the city. Interest and dividends are not taxable for nonresidents.6City of East Lansing. City Income Tax Act, Act 284 of 1964 – Section 13
Income That Is Exempt
Active-duty military compensation is fully exempt under Act 284.7Michigan Legislature. City Income Tax Act, Act 284 of 1964 – Section 32 A civilian job held by a military spouse is still taxable; the military pay itself is not.
Social Security benefits and traditional pension payments are generally not taxed by the city, because Act 284 lists specific categories of taxable income and retirement benefits are not among them. Unemployment compensation and public assistance are treated the same way. Retirees in particular should not assume the city follows the federal government on these items.
What Your Employer Withholds
If your employer has a location in Lansing or conducts business there, it is required to withhold the city income tax from your paycheck. Withholding applies to all Lansing residents regardless of where the work happens, and to nonresidents on wages earned inside the city.8Michigan Legislature. Michigan Compiled Laws 141-651
One threshold matters for commuters: if your estimated share of work performed in Lansing is less than 25%, the employer isn’t required to withhold anything. You still owe the tax when you file; it just doesn’t come out of your check automatically.8Michigan Legislature. Michigan Compiled Laws 141-651
Filing on Form L-1040
Everyone files on Form L-1040. Residents, nonresidents, and part-year residents all use the same form, with checkboxes to indicate status. You’ll want your W-2s showing Lansing tax withheld, any relevant 1099s, and a copy of your federal 1040 to cross-reference.4City of Lansing. City of Lansing Income Tax – Form L-1040
The personal exemption is $600 per qualifying dependent. Multiply by the number of exemptions you’re claiming and subtract from taxable income before applying the rate.4City of Lansing. City of Lansing Income Tax – Form L-1040
If you live in Lansing but worked in another Michigan city that also taxed your wages, you can claim a credit on your Lansing return for the amount paid to that other city. The credit is capped at what Lansing would have charged a nonresident on the same income, but it prevents double taxation.9Michigan Legislature. Michigan Compiled Laws 141-665
Forms are available on the City of Lansing website or in person at the Treasury & Income Tax Office at 124 W. Michigan Avenue.10Lansing, MI. Individual Tax Forms
Deadline and How to Pay
Returns are due April 30 each year.1Lansing, MI. Income Tax Information If April 30 falls on a weekend or holiday, the deadline moves to the next business day.
You can mail the completed return to the address on the form instructions or file online through the city’s portal. Pay by check or money order with a mailed return, or by electronic transfer through the city’s payment site. Electronic payments generate an immediate receipt; save it.
Estimated Quarterly Payments
If your withholding won’t cover what you’ll owe, you need to make estimated payments on Form L-1040ES. This usually applies to self-employed people, landlords with Lansing rental property, and anyone with substantial income that isn’t subject to withholding. The total is split into four equal installments.
For the 2026 tax year, the quarterly due dates are:
- First quarter: April 30, 2026
- Second quarter: June 30, 2026
- Third quarter: September 30, 2026
- Fourth quarter: January 31, 2027
When a due date falls on a weekend or legal holiday, it shifts to the next business day.11City of Lansing. City of Lansing Estimated Income Tax Form L-1040ES
Penalties for Filing or Paying Late
The penalty for failing to file or pay on time starts at 5% of the unpaid tax if the delay is two months or less, with an additional 5% added for each month or partial month after that, up to 25% of the tax owed.12Michigan Legislature. Michigan Compiled Laws 205-24 Interest accrues on top of the penalty.
If you can’t pay the full balance, file an accurate return on time anyway. The penalty clock runs from the original due date regardless of whether the return is in.
Claiming the Tax on Your Federal Return
Lansing income tax counts as a state and local tax for federal purposes. If you itemize on Schedule A, include it in your SALT deduction. For the 2026 tax year, the SALT cap is $40,000 for most filers, or $20,000 for married filing separately. An income-based limitation can reduce the cap further but will not drop it below $10,000.13Internal Revenue Service. Topic No. 503, Deductible Taxes
The cap applies to all state and local taxes combined, including Michigan state income tax and property taxes. Most Lansing filers stay well under it.
Getting Help
Questions about filing status, nonresident calculations, or forms go to the Treasury & Income Tax Office at 124 W. Michigan Avenue, Lansing, MI 48933. The phone number is 517-483-4121, and hours are Monday through Friday, 8:00 a.m. to 4:00 p.m.14Lansing, MI. Treasury and Income Tax Office Staff can walk you through whether you owe as a nonresident and hand out paper forms if you’d rather not download them.