Short answer. Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. A resident of one of them who works here gives the employer Form MI-W4 and pays income tax on covered wages at home.
Michigan at a glance
- Income tax on wages
- Yes
- Agreements named
- Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin
- What's covered
- Salaries and wages.
- Employee form
- Form MI-W4, Withholding Exemption Certificate
- Nonresidents
- Withheld from unless an agreement or exemption applies
- Resident credit
- Stated
- Convenience rule
- Not stated on the pages we read
- Agency
- Michigan Department of Treasury
Michigan's agreement partners
| Partner | Other side | Their form | Conditions | Check |
|---|---|---|---|---|
| Illinois | Names this state too | IL-W-5-NR | None beyond the general ones | Live there, work here |
| Indiana | Names this state too | WH-47 | None beyond the general ones | Live there, work here |
| Kentucky | Names this state too | 42A809 | None beyond the general ones | Live there, work here |
| Minnesota | Names this state too | MWR | None beyond the general ones | Live there, work here |
| Ohio | Names this state too | IT 4NR | None beyond the general ones | Live there, work here |
| Wisconsin | Names this state too | W-220 | None beyond the general ones | Live there, work here |
The form: MI-W4
Withholding Exemption Certificate. Every Michigan employer gets an MI-W4 from each employee; the federal W-4 can't replace it. Treasury doesn't furnish separate nonresidency certificates, so the employer may use its own form or a letter from the employee as its authority not to withhold.
"Every employer must obtain a Withholding Exemption Certificate (Form MI-W4) from each employee."
In the official words
"Residents of reciprocal states (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) working in Michigan,"
"Employers located in Michigan must withhold Michigan income tax from all compensation paid to nonresident employees"
Credit for tax paid to other states
A Michigan resident may get a non-refundable credit for tax paid to a nonreciprocal state, DC, a Canadian province, or a city outside Michigan (including a city in a reciprocal state). No credit for salaries and wages earned in a reciprocal state.
Worth knowing
- If a Michigan resident had a reciprocal state's tax withheld by mistake, "it is the Michigan resident's responsibility to file a nonresident tax return with that state" to get it back.
- Employers in reciprocal states may voluntarily register with Treasury to withhold Michigan tax from Michigan residents who work in their states.
Not confirmed on the pages we read: a convenience of the employer rule, a days-in-state threshold.
Official sources
- Michigan Department of Treasury: 2026 Michigan Income Tax Withholding Guide (Form 446) (checked November 2026)
- Michigan Department of Treasury: Are my wages earned in another state taxable in Michigan if I am a Michigan resident? (checked November 2026)
General information, not tax advice. Checked November 2026 against the official pages listed above. Agreements, forms and thresholds change, and your own facts (where you lived, where you worked each day, other income) decide the answer; check with a tax professional for your situation. MCC Solutions is not a CPA firm and is not affiliated with any tax agency.
Questions about Michigan
Which states have a reciprocal agreement with Michigan?
Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Michigan's page puts it this way: "Residents of reciprocal states (Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin) working in Michigan,."
Which form does a nonresident give a Michigan employer?
Form MI-W4, Withholding Exemption Certificate. Every Michigan employer gets an MI-W4 from each employee; the federal W-4 can't replace it. Treasury doesn't furnish separate nonresidency certificates, so the employer may use its own form or a letter from the employee as its authority not to withhold.
Does Michigan withhold from nonresidents from other states?
Yes, unless an agreement or exemption applies. The official wording: "Employers located in Michigan must withhold Michigan income tax from all compensation paid to nonresident employees."
Do Michigan residents get credit for tax paid to another state?
A Michigan resident may get a non-refundable credit for tax paid to a nonreciprocal state, DC, a Canadian province, or a city outside Michigan (including a city in a reciprocal state). No credit for salaries and wages earned in a reciprocal state.
All states: reciprocity agreements by state · Live in one state, work in another · Maryland · Minnesota