Grand Rapids Local Tax Guide (2026)
Understanding how local taxes work in Grand Rapids, Michigan, and how they affect your take-home pay.
In this guide
Last updated: October 1, 2026
- •Grand Rapids has a local income tax that applies to income earned in the city.
- •Residents pay 1.50% on all income. Non-residents pay 0.75% on Grand Rapids income only.
- •Local tax is separate from Michigan state tax and federal tax. Both are calculated independently and add to your total tax burden.
- •Local tax directly reduces your take-home pay. Combined with state and federal taxes, the total tax burden can be significant for high earners.
What Grand Rapids local tax costs at three incomes
The 1.50% resident rate is charged on top of federal tax, Michigan state tax and FICA. Priced for 2026, a $75,000 salary loses $1,125 to Grand Rapids alone and takes home $57,280: a combined 23.6% of gross across all four.
| Salary | Grand Rapids tax | Michigan tax | Federal + FICA | Take-home | Total rate |
|---|---|---|---|---|---|
| $50,000 | $750 | $2,125 | $7,645 | $39,480 | 21.0% |
| $75,000 | $1,125 | $3,188 | $13,408 | $57,280 | 23.6% |
| $120,000 | $1,800 | $5,100 | $26,750 | $86,350 | 28.0% |
Living in Grand Rapids rather than only working there costs 0.75 percentage points more: $563 a year on $75,000, since non-residents pay 0.75%.
How Grand Rapids compares
Of the 62 US jurisdictions that levy a local income tax, Grand Rapids ranks 49th by resident rate, level with 2 other jurisdictions. The median is 2.50%, the highest is New York City at 3.078%–3.876%, and the lowest is St. Louis at 1.00%. Immediately above Grand Rapids sits Allen County (Fort Wayne) (1.59%) and below it Lake County (1.50%).
Within Michigan, 7 jurisdictions charge a local income tax and Grand Rapids is the 2nd highest. Same salary, different address:
What local taxes apply in Grand Rapids
Grand Rapids has a local income tax that applies to income earned in the city.
Key Takeaway
| Residency Status | Rate | Applies To |
|---|---|---|
| Resident | 1.50% | All income |
| Non-resident | 0.75% | Grand Rapids income only |
Grand Rapids has a local income tax that applies to income earned in the city. The rate depends on whether you're a resident or non-resident.
Grand Rapids has a local income tax that applies to income earned in the city.
Residents: If you live in Grand Rapids, you pay 1.50% on all your income.
Non-residents: If you work in Grand Rapids but live elsewhere, you pay 0.75% on income earned in the city.
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How they interact with state taxes
Grand Rapids local tax is calculated separately from Michigan state income tax. Both taxes are calculated on your taxable income and are withheld by your employer.
Tax Deduction
Grand Rapids local tax is calculated separately from Michigan state income tax. This means:
- Local tax is in addition to state tax, not instead of it
- Both taxes are calculated on your taxable income (or wages, depending on the tax type)
- Your employer withholds both local and state taxes from your paycheck
- You may be able to deduct local tax on your state tax return, depending on Michigan tax rules
For example, if you earn $100,000 in Grand Rapids, you pay Michigan state tax on that income, plus Grand Rapids local tax. The local tax doesn't reduce your state taxable income.
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Who is affected
You're subject to Grand Rapids local tax if you live in the city or work in the city, depending on whether you're a resident or non-resident.
You're subject to Grand Rapids local tax if:
- You live in Grand Rapids (residents pay on all income)
- You work in Grand Rapids but live elsewhere (non-residents pay on Grand Rapids income only)
- You're self-employed and perform work in Grand Rapids
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Common paycheck misconceptions
Common misunderstandings about Grand Rapids local tax, including when it applies and how it's calculated.
Common misconceptions about Grand Rapids local tax:
- "It's the same as state tax": False. Local tax is separate from Michigan state tax and is calculated independently.
- "I only pay if I live there": False. Non-residents who work in the city also pay.
- "Remote work means no tax": If you're a Grand Rapids resident, you typically pay on all income regardless of where you work.
Take-home pay impact
Grand Rapids local tax directly reduces your take-home pay. The amount depends on your income level and whether you're a resident or non-resident.
Grand Rapids local tax directly reduces your take-home pay. For example, if you earn $100,000 as a Grand Rapids resident:
- Local tax: approximately $1500 annually
- This reduces your bi-weekly paycheck by about $58
- Combined with Michigan state tax and federal tax, the total tax burden can be significant
To see exactly how Grand Rapids local tax affects your paycheck, use our calculator above. You can adjust your income, filing status, and deductions to see how different scenarios affect your net pay.
Want to see this with your numbers? Try the calculator with your numbers →
Does this apply to you?
Determine whether you're subject to Grand Rapids local tax based on where you live and work.
Check Your Pay Stub
You're subject to Grand Rapids local tax if:
- You live in Grand Rapids (residents pay on all income)
- You work in Grand Rapids but live elsewhere (non-residents pay on Grand Rapids income only)
You're not subject to Grand Rapids local tax if you live and work outside the city, even if you're a Michigan resident.