Grand Rapids City Income Tax: Who Pays and How to File

If you live in Grand Rapids, you owe a city income tax on top of your federal and Michigan taxes. Residents pay 1.5% of their income, and people who live elsewhere but work in the city pay 0.75%. Either way, the city wants its own return, separate from the ones you file with the IRS and the state.

Who has to file a Grand Rapids city return

Residents file no matter where they work. If your home is inside the city limits, you file a resident return even if your job is in Kentwood or fully remote.

Nonresidents who work in Grand Rapids file a nonresident return. If you live in Wyoming and commute downtown, that is you.

If you moved into or out of the city during the year, you file a part-year return and figure the tax for the months you lived inside the city.

How much the tax is

Residents pay 1.5%. Nonresidents who work in the city pay 0.75%. On an $85,000 salary, that comes to about $1,275 a year as a resident and $637.50 as a commuter, before any adjustments.

This is separate from Michigan's flat 4.25% income tax for 2026, and it comes out of the same paycheck. It matters when you compare job offers. A position in Grand Rapids and a similar one in Kentwood or Grandville pay the same salary, but only one of them carries a city income tax.

Other West Michigan cities with an income tax

Walker charges residents 1% and nonresidents who work there 0.5%. Muskegon, Ionia and Big Rapids have city income taxes too. Michigan has 24 cities that tax income in total.

Most of the places around Grand Rapids do not. Kentwood, Wyoming, Grandville, Holland, Zeeland, Grand Haven, Ada, Rockford and East Grand Rapids have no city income tax. If you live in one of them but work in Grand Rapids or Walker, you may still owe that city's nonresident tax.

How to file

Gather the same documents you use for your federal return, starting with your W-2s.
Pick the right form on the City of Grand Rapids income tax site: resident, nonresident or part-year.
File electronically if you can. For 2025 returns, the city accepted e-filing from every kind of filer, including part-year and nonresident filers.
Mark the deadline. For 2025 returns it was April 30, 2026, two weeks after the federal date. Check the city's site each year.
If something does not make sense, call the city's Income Tax Office at (616) 456-3415.

The City of Grand Rapids income tax guide for individuals has the forms and instructions.

Getting it done for you

I prepare the Grand Rapids city return together with your federal and Michigan returns. If your income is all W-2, the three returns together start at $200. You can see your price and book on the tax preparation page.

If you want the city tax built into your budget and your job decisions, that is part of financial planning in Grand Rapids.

Frequently Asked Questions

Do I pay Grand Rapids income tax if I work from home?

If your home is inside Grand Rapids, yes. Residents pay the 1.5% city tax on their income no matter where the job is. If you live outside the city and work from home, you generally do not owe it, because the nonresident tax applies to people who work in the city.

What is the Grand Rapids city income tax rate?

The rate is 1.5% for residents and 0.75% for nonresidents who work in the city. Walker, the next city over, charges 1% for residents and 0.5% for nonresidents. Confirm current rates with the city before you file.

When is the Grand Rapids city income tax return due?

For 2025 returns the city set its deadline at April 30, 2026, two weeks after the federal deadline. The date can change from year to year, so check the City of Grand Rapids income tax site before you file.

Disclosure: This article is for educational purposes only and does not constitute personalized investment, tax, or legal advice. Individual situations vary. Tax rates and deadlines change, so confirm current figures with the City of Grand Rapids before filing. Villaire Financial, LLC is a registered investment adviser. Schedule a free intro call if you'd like to talk through your specific situation.