Live in Michigan, Work in Texas: Which State Taxes Your Paycheck?
Answer
Michigan taxes the income and Texas cannot. Residency, not the location of the job, drives this answer: Michigan reaches all of a resident's income, and Texas has no personal income tax to apply to the part earned inside its borders.
Last verified
Crossing into a state with no income tax does not lower your tax bill, because your home state is not taxing you on where you work — it is taxing you on where you live. Michigan reaches all of a resident's income, and Texas adds nothing on top.
What you file
- 1Resident return · Michigan
File a Michigan resident return reporting all of your income.
The two states, side by side
| Michigan | Texas | |
|---|---|---|
| Taxes wages | Yes — flat | No |
| Reciprocity partners | 6 (Form MI-W4) | None |
| Convenience rule | No | No |
| Nonresident return | Form MI-1040 with Schedule NR | Not applicable |
| Credit for other-state tax | Form MI-1040 (credit for income tax imposed by another state) | No income tax |
| Nonresident safe harbour | None published | Not applicable |
| Local income tax | Yes | No |
| Revenue department | Michigan Department of Treasury | Texas Comptroller of Public Accounts |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Texas and working in Michigan gives:Work state only.
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 → TexasHome state only
- 1099 contractor: Michigan → TexasHome state only — estimated payments
- Moved mid-year: Michigan → TexasOne part-year return — the state you left
Other Michigan pairs
Questions people actually ask
I live in Michigan and work in Texas. Which state takes the tax out of my paycheck?
Michigan taxes the income and Texas cannot. Residency, not the location of the job, drives this answer: Michigan reaches all of a resident's income, and Texas has no personal income tax to apply to the part earned inside its borders.
Which state should my employer be withholding for?
Michigan. Your employer should withhold Michigan tax rather than Texas tax on these wages. If a Texas line is showing on your pay stub, raise it with payroll now rather than at filing time.
How current is this?
The Michigan and Texas rules on this page were last checked against Michigan Department of Treasury and Texas Comptroller of Public Accounts 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
- Texas Comptroller of Public Accounts — individual income taxaccessed 2026-08-07