Michigan to Process Flint Income Taxes in 2027

The state treasury will assume control of Flint's income tax filing system starting January 1, 2027.

Updated on Oct. 27, 2026 in Taxes

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The Michigan Department of Treasury will manage all Flint city income tax returns starting January 1, 2027, to streamline municipal administration. AI Illustration. Upload story photo >

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Beginning January 1, 2027, the Michigan Department of Treasury will manage processing for all Flint city income tax returns. This new state-administered system will allow taxpayers to file their local and state returns simultaneously.

Why it matters

The transition is designed to simplify the filing process for residents while providing the city with improved tools to collect necessary revenue. This shift aims to streamline administration for individuals, corporations, partnerships, and fiduciary entities.

Flint currently maintains a 1% income tax rate for residents and a 0.5% rate for non-residents working in the city. The state-run model follows a precedent set by Detroit, which saw a 54% increase in tax revenue after moving to state administration.

The players

Michigan Department of Treasury

This state agency oversees revenue collection, tax administration, and the management of municipal tax programs across Michigan.

The details

Taxpayers will now use a centralized state system to pay and file their city income tax alongside state income tax returns. The move ensures the city of Flint utilizes the same administrative framework already employed by other major municipalities.

Timeline

  1. Detroit began using state-administered income tax processing in 2015.

  2. Michigan Treasury will officially take over Flint's tax processing on January 1, 2027.

  3. Pontiac is scheduled to initiate a similar state income tax partnership in 2028.

Market Dynamics

The transition for Flint follows the pattern established by the 2015 Detroit state-administered income tax transition. This shift represents a broader trend of municipal consolidation within the state revenue collection framework.

Residents and non-residents will gain the convenience of a unified filing process for both city and state obligations. Taxpayers should prepare for a transition to the state-administered system when filing their returns starting in 2027.

The takeaway

Taxpayers should prepare for a shift in their filing workflow as local administration moves to the state level. Consolidating these filings is intended to make compliance more straightforward for residents and business entities alike.

Further reading

Learn more about local filing changes on our Taxes page.

Source note: This article includes information reported by Mlive.

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Do you support shifting local income tax processing to state-level administration in your community?