BENTON HARBOR, Mich. (Michigan News Source) – While cities such as Detroit and Grand Rapids are reporting record levels of tax revenue with their income tax, the city of Benton Harbor hasn’t been as fortunate.

Benton Harbor’s income tax dropped from $2.1 million in 2023 to $1.64 million in 2024, according to a report the city filed Dec. 24 with the Michigan Department of Treasury.

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Benton Harbor first implemented an income tax of 1% on residents and 0.5% on nonresidents who commute to the city to work in 2018. The city collected $1.68 million in income taxes in 2019, the first full year the tax was collected. Records show the city had budgeted $2.1 million in 2024 for its expected amount of income tax.

Benton Harbor’s unemployment rate slightly increased in fiscal year 2023-24. For example, the Niles-Benton Harbor region unemployment rate reached 5.3% in Jun 2024, the highest since Aug. 2021.

There are 24 cities in Michigan that impose an income tax.