How to Pay Michigan State Taxes

If you owe the state of Michigan income taxes, employment taxes, sales tax, or several other types of taxes, there are multiple ways you may be able to pay. Whether you pay taxes once per year or you are required to make more frequent payments, timely payment of taxes can help you avoid penalties and interest. 

Learn more about paying your Michigan state taxes, and for more in-depth assistance, consult our database of local tax pros.

Paying Your Income Taxes

Under Michigan law, taxpayers who owe income taxes must pay on or before April 15. Any late penalties may result in penalties and interest. The Michigan Department of Treasury does provide a penalty and interest calculator that can help you calculate what you owe if you are paying late. How you pay depends on whether you choose to pay online or via mail.

Pay-by-Mail Options

Most people prefer to pay their taxes online, due to the immediate receipt and verification they get. But if you want to pay via check or money order, you can do so. You must send the check or money order to:

Michigan Department of Treasury
P.O. Box 30774
Lansing, MI 48929

Your check or money order should be made out to the State of Michigan. It must also include the tax year and your Social Security number.

Online Payment Options

Michigan also has an ePayments system that offers quick and easy electronic payments. You must choose to pay by eCheck or debit/credit card. 

If you want to pay by eCheck, you must have filed your taxes prior to the end of the year in which they were due. For example, you can only pay your 2023 MI state income taxes by eCheck online if you file them by December 31t, 2024. You must also use the same zip code listed on your Michigan Individual Income Tax Return.

The other option allows you to pay by debit or credit card. There is a $3.95 fee for debit card payments and a 2.3% convenience fee for credit cards. 

Online payments can be made for tax due payments, extension payments, and quarterly estimated payments.

Phone Payments

The state of Michigan does not currently accept any tax payments over the phone; taxpayers must use a mail or electronic payment option.

Estimated Tax Payments

Some taxpayers are required to make estimated tax payments every quarter. If you fall into this category, plan ahead to avoid penalties.

Do You Have to Make Estimated Tax Payments?

Under state law, individuals must make estimated tax payments if their tax liability after credits and withholding is expected to be $500 or more for the year. Payments are due April 15, June 15, September 15, and January 15.

As long as you pay 90% of the current year's tax or 100% of the previous year's tax, you are not required to make quarterly payments. For instance, if you owed $1,000 last year and you pay $250 every quarter, you won't face any penalties if you end up owing $2,000 at the end of the year. If you owed $0 last year and owe $5,000 this year, you also don't have to pay quarterly. 

The only exception is for taxpayers with adjusted gross incomes of $150,000 or higher ($75,000 if you file separately). They must pay at least 110% of the previous year's taxes. 

How to Remit Payment

The ePayments system accepts estimated tax payments. Anything paid in the current quarter will be paid toward the current quarter’s estimated taxes. If you miss the deadline, anything you pay after the deadline will go to the next quarter’s taxes.

You may also be able to pay via mail. If you have owed more than $500 in state taxes in previous years, the state of Michigan may send you estimated payment vouchers, or sometimes your tax prep software may generate the vouchers. You can simply send a check or money order with the voucher to make your payment. If your filing status has changed, you should use blank MI-1040ES vouchers instead of the preprinted vouchers.

Business Tax Payment Options

Business owners may have to make tax payments annually or quarterly, depending on how much they anticipate owing.

Employment Taxes

You can pay your employment taxes online via the Michigan Treasury Online. If you want to pay via mail with your tax return, make a check payable to the State of Michigan. It should include your business tax account number, SUW, and return period. You can also pay without your tax return if you have already filed it. The address is listed on your return.

Corporate Income Tax

The state of Michigan charges 6% in corporate income tax. This must be filed online via the Michigan Treasury Online, but you can pay online or via mail. EFT transfer is preferred due to its convenience, but you can pay via mail if you choose.

Sales and Use Taxes

You pay your sales and use taxes the same way you pay your employment taxes. If you do not want to use the Michigan Treasury Online, send your payment via check with your business tax account number, SUW, and the return period listed.

What If You Can’t Pay State Taxes in Full?

The Michigan Department of Treasury does have alternate payment options for those who are unable to pay in full. If you want to set up a payment plan, you must wait until you receive your Bill for Taxes Due. 

After you receive this form—either Form 168 or Form 169—you can apply for an installment agreement by submitting Form 990. It must include a proposed payment amount that will result in your tax debt being paid off in 48 months or less. If you want a longer payment plan, you have to fill out a Collection Information Statement. Note that the rules may vary for personal or business taxes.

Certain taxpayers may also be able to make an Offer in Compromise. This is a request for the Michigan Department of Treasury to agree on a payment amount that is less than you actually owe. The amount you offer should be an accurate reflection of your assets and income; the Department of Treasury is unlikely to accept an offer significantly lower than what you can afford.

State tax problems can be just as stressful and expensive as federal tax issues, and sometimes, even more so. At TaxCure, we help taxpayers like you find tax pros with experience in local tax laws and regulations. Explore our database of Michigan tax professionals to find someone to help you with your local tax concerns.