Live in Michigan, Work in Rhode Island: Which State Taxes Your Paycheck?
Answer
Expect withholding in Rhode Island and a return in both. Michigan and Rhode Island hold no reciprocal agreement, so the overlap is resolved after the fact: Rhode Island taxes the Rhode Island-source wages, and your Michigan resident return claims a credit for that tax against the Michigan liability on the same income.
Last verified
Without an agreement between Michigan and Rhode Island, the overlap is handled after the fact rather than prevented. That is why the filing order matters: the Rhode Island figure is an input to the Michigan return, so completing Michigan first means doing it twice.
A Michigan resident taxed by another state on the same income claims the credit for taxes paid to other states on Form MI-1040 (credit for income tax imposed by another state). The credit is capped at the Michigan tax on that income, so it removes the double tax but never refunds the excess when the other state charges more.
What you file
- 1Nonresident return · Rhode IslandForm RI-1040NR
File the Rhode Island nonresident return FIRST — you need the Rhode Island tax figure before you can complete Michigan.
- 2Resident return · MichiganForm MI-1040 (credit for income tax imposed by another state)
File a Michigan resident return reporting all income, then claim the credit for tax paid to Rhode Island. The credit is capped at what Michigan would have charged on that same income, so if Rhode Island taxes it at a higher rate the difference is not refunded.
The two states, side by side
| Michigan | Rhode Island | |
|---|---|---|
| Taxes wages | Yes — flat | Yes — graduated |
| Reciprocity partners | 6 (Form MI-W4) | None |
| Convenience rule | No | No |
| Nonresident return | Form MI-1040 with Schedule NR | Form RI-1040NR |
| Credit for other-state tax | Form MI-1040 (credit for income tax imposed by another state) | Form RI-1040NR Schedule II |
| Nonresident safe harbour | None published | None published |
| Local income tax | Yes | No |
| Revenue department | Michigan Department of Treasury | Rhode Island Division of Taxation |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Rhode Island and working in Michigan gives:Both states — credit offsets the double tax.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: Michigan → Rhode IslandHome state only
- 1099 contractor: Michigan → Rhode IslandHome state, plus the client state if you work there
- Moved mid-year: Michigan → Rhode IslandTwo part-year returns
Other Michigan pairs
Questions people actually ask
I live in Michigan and work in Rhode Island. Which state takes the tax out of my paycheck?
Expect withholding in Rhode Island and a return in both. Michigan and Rhode Island hold no reciprocal agreement, so the overlap is resolved after the fact: Rhode Island taxes the Rhode Island-source wages, and your Michigan resident return claims a credit for that tax against the Michigan liability on the same income.
Which state should my employer be withholding for?
Rhode Island. The wages are sourced to Rhode Island, so Rhode Island withholding is correct and there is no Michigan withholding to set up.
Will I end up paying tax twice on the same income?
Not twice over, but you will pay the higher of the two rates. Michigan gives residents a credit for tax paid to Rhode Island on the same income, claimed on Form MI-1040 (credit for income tax imposed by another state). The credit is capped at the Michigan tax on that income, so if Rhode Island taxes it more heavily the excess is not refunded by either state.
How current is this?
The Michigan and Rhode Island rules on this page were last checked against Michigan Department of Treasury and Rhode Island Division of Taxation on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- Michigan Department of Treasury — individual income taxaccessed 2026-08-07
- Rhode Island Division of Taxation — individual income taxaccessed 2026-08-07