MI-WI Tax Reciprocity 2026

MI-WI reciprocity primarily serves Upper Peninsula commuters across the WI-UP border.

Quick answer: Yes, active reciprocity. MI residents working in WI file W-220. WI residents working in MI file MI-W4 with nonresident exemption.

How It Works Both Directions

ScenarioForm To FileResult
Live MI, work WIW-220 (to skip WI)No WI withholding. Pay MI tax only.
Live WI, work MIMI-W4 (to skip MI)No MI withholding. Pay WI tax only.

Worked Example

Hannah lives in Iron Mountain MI, works in Kingsford-area WI, earns $52,000. With reciprocity: files W-220 with WI employer. WI withholds $0. MI withholds ~$2,210 (4.25%). Because WI's top rate is higher, reciprocity saves her ~$180 in real tax (WI would have taken more than MI credits back).

Step-by-Step: Claim the Exemption

  1. Download the work-state exemption form (WI form W-220 for MI-residents-working-in-WI; MI form MI-W4 (nonresident exemption) for WI-residents-working-in-MI).
  2. Fill in name, SSN, home address (must be in the reciprocity state), and current date.
  3. Submit to HR/payroll at your employer.
  4. Verify on your next paystub that work-state tax withholding is $0.
  5. Update your home-state W-4 to make sure you withhold enough for full income tax.
  6. File only a resident return in your home state next April (unless you have non-wage work-state income).

OBBBA 2026 Note

OBBBA 2026 (One Big Beautiful Bill Act) raised the federal SALT cap to $40,000. This matters for reciprocity commuters who itemize: your full home-state income tax is now more likely to be fully deductible on federal Schedule A, making the state-level tax difference between your home and work state a real after-tax driver of commute value. Check each state rate: MI top rate 4.25% flat, WI top rate 7.65% top.

FAQ

Is MI-WI reciprocity commonly used?

It is primarily used by Upper Peninsula (UP) residents commuting to/from WI border towns. Lower-Peninsula MI residents working in WI is rare due to geography.

What form does a MI resident working in WI file?

Form W-220 (Wisconsin Certificate of Nonresidence) filed with WI employer. Valid until revoked. Re-submit annually for safety.

Does Michigan’s 4.25% rate include local taxes?

No. Several MI cities (Detroit, Grand Rapids, Lansing, Flint, etc.) have local income tax of 1–2.4%. These are NOT covered by reciprocity. WI residents working in these MI cities still owe the local tax.

What about Wisconsin county or city taxes?

Wisconsin has NO county or municipal income taxes. Reciprocity covers all WI wage-based income tax.

Does MN-MI reciprocity still exist?

No. MN-MI reciprocity ended in 2010. MN residents working in MI must now withhold to MI and claim a credit on MN return, and vice versa.

Model Your Take-Home

See exact post-reciprocity paycheck with MI or WI withholding.

Paycheck Calculator →
Other reciprocity pairs:
NJ-PA · VA-DC · MD-DC · MD-VA · MD-PA · PA-OH · Full matrix

Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.

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