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Your income tax may be pro-rated by your employer based on the amount of time you worked in the East Lansing community. The tax will only apply to the income earned while working in East Lansing. If your employer is unable to prorate and withholds too much, you will receive a refund when you file your EL-1040 form. You will be required to furnish support of the time worked outside of the City and this must be certified by your employer.
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Residents (working in East Lansing or another community) and non-residents working in East Lansing will pay the income tax. Community members can view the East Lansing Income Tax Boundary Map (GIS) to determine if they live or work in the area where the income tax will be assessed. The map is searchable by address, parcel number and MSU building name.Residents will pay a 1% income tax and non-residents will pay a 0.5% income tax. There will be $600 deductions for each personal and dependency exemption claimed and some income, such as retirement income, will not be taxed. If an individual lives in East Lansing and works in another community with an income tax or works in East Lansing and lives in another community with an income tax, they would pay 0.5% to East Lansing and 0.5% to the community in which they work or live.
Employers within the City of East Lansing are required to withhold and remit the tax on behalf of its employees. East Lansing residents working in other communities should work with their respective employer to see if the tax can be withheld. Form EL-W-4 will need to be filed with his or her employer stating the number of exemptions claimed, the city of residence, and the predominant place of employment.If the income tax is not withheld from pay or other taxable income sources and the adjusted gross income results in a tax liability of $100 or more, a resident is required to file quarterly estimated tax payments using form EL-1040-ES. Failure to file form EL-1040-ES and make the required payments will result in the assessment of penalty and interest for the late payment of the tax.To avoid penalty and interest charges, you must pay during the course of the year at least 70% of your current year or prior year liability, whichever is less. Payments can be made through employer withholdings or quarterly estimated payments.
Community members can view the East Lansing Income Tax Boundary Map (GIS) to determine if they live or work in the area where the income tax will be administered. The map is searchable by address, parcel number and MSU building name.Other ways to tell if you live in the City of East Lansing are your voter registration card and/or your property tax bill. If these are issued by the City of East Lansing, you are an East Lansing resident.
Your employer may elect to voluntarily withhold for the City of East Lansing at a rate of 0.5% as well as withhold for the community in which you work at a rate of 0.5%. Your total tax rate will not exceed 1.0%.
Residents of East Lansing will pay a 1% income tax if working in a different community without a local income tax. A non-East Lansing employer is not required to withhold; however, an employer may elect to courtesy withhold for the City of East Lansing.
Income exempt from the income tax includes retirement income, unemployment income, military pay, tax refunds (city, state and federal) and more. For a more exhaustive list of income exempt from the City income tax, click here.Additionally, individuals who make less than $5,000 annually and do not have a personal exemption because they are claimed on someone else’s taxes would be exempt from the income tax. This could apply to students who are still claimed on their parent or guardian's taxes.
Yes, the employer should withhold at the applicable tax rate. You must file the individual income tax return form EL-1040, due April 30 of the subsequent year, to receive a refund of the amount withheld.
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