Income Taxes & Forms

INCOME TAX DEPARTMENT

The City of Benton Harbor’s income tax took effect January 1, 2018. The city income tax is used to pave, repair, and maintain city streets. 

Tax Return Filing Dates

City of Benton Harbor Income Tax Returns is due on or before July 30, 2020.

City Tax Rates

• The rate for residents and businesses is 1% 
  • Residents are required to pay 1% on all earned income
  • Businesses are required to pay 1% on all earned income in the City of Benton Harbor
• The rate for non-residents working in the city if 0.5%
  • Non-residents are required to pay 0.5% on all earned income while working in the City of Benton Harbor.

Who Should File

• Residents – Residents are those that live within the city limits, whether they rent or own a home. 
• Non-Residents – non-residents are those that live outside the city limits, but work inside the City of Benton Harbor.
• Part-Year Residents – part-year residents need to file a return for the portion of the year they were a resident. 

Businesses

Businesses that must withhold City of Benton Harbor Income Tax

• Every employer who does business in the City of Benton Harbor is required to withhold Benton Harbor income tax. This applies even if you do not maintain a location in Benton Harbor. 
• Nonprofit organizations that are exempt from income tax, such as charitable, religious and governmental organizations, must withhold tax from compensation paid to their employees.
• If you are located outside of Benton Harbor and have employees who work in Benton Harbor, you must withhold Benton Harbor income tax for all employees working in the City of Benton Harbor.  

Employer Withholding Tool

After submitting their completed CF-SS-4 form, employers can use the City of Benton Harbor’s new Employer Withholding Tool to set up their withholding tax account and complete their withholding tax reporting and payment.