Detroit citizens and those who work in the city will be able to pay their city income taxes online starting with the new tax season.
The state is taking over Detroit income tax collection as part of the city’s post-bankruptcy efforts and the Treasury Department will begin processing the taxes in January. The move will make it easier to file taxes while also boosting compliance, likely resulting in increased revenue for the city.
Income tax is 2.4% for residents and 1.2% for nonresidents who work in Detroit and is the city’s largest revenue source, it is estimated to raise more than $250 million a year.