Michigan Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Michigan?

What is taxable in Michigan?

How do you register to collect sales tax in Michigan?

What is the economic nexus threshold for Michigan?

How to register for sales tax in Michigan

Before you can collect sales tax, you need to register with the Michigan Department of Treasury. Here is the step-by-step process.

1. Register online through the Michigan Department of Treasury website
2. Provide your FEIN or SSN, business entity type, and business location details
3. Registration is typically free
4. SST member states can also register at sstregister.org
5. A single registration covers the entire state — no local registration needed

How to collect sales tax in Michigan

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Michigan.

1. Determine taxability of each product or service under Michigan rules
2. The rate is a uniform 6.00% statewide with no local add-ons
3. Michigan is a destination-based state for sales tax sourcing
4. Charge the correct rate at the point of sale and itemize on receipts and invoices
5. Accept Michigan resale certificates from qualifying wholesale buyers
6. Keep records of all transactions and exemption certificates for at least 3 years

How to file and remit sales tax in Michigan

Filing your sales tax return on time is critical to avoid penalties. Michigan requires electronic filing for most businesses.

1. File electronically through Michigan Treasury Online (MTO)
2. Filing frequency is assigned based on your tax liability: monthly, quarterly, or annually
3. Returns are typically due on the 20th of the month following the reporting period
4. Report gross sales, exempt sales, and taxable sales
5. Pay electronically by the return due date
6. Retain all records for at least 3 years

What is exempt from Michigan sales tax?

Not everything is subject to sales tax. Michigan provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Michigan Department of Treasury.

• •Sales for resale with a valid Michigan resale certificate
• •Grocery food for home consumption
• •Prescription drugs and certain medical devices
• •Manufacturing machinery and equipment
• •Agricultural inputs including feed, seed, and fertilizer
• •Sales to federal, state, and local governments
• •Qualifying nonprofit organizations with a valid exemption certificate
• •Most digital goods and SaaS subscriptions (not taxable in Michigan)

What is use tax in Michigan?

Michigan use tax applies at the same rate as sales tax when you purchase taxable goods from out-of-state vendors who do not collect Michigan sales tax. Businesses must report and pay use tax on their regular sales tax return. Common triggers include online purchases, out-of-state equipment, and supplies from non-collecting vendors.

Does Michigan have marketplace facilitator rules?

Michigan requires marketplace facilitators meeting the economic nexus threshold to collect and remit sales tax on behalf of third-party sellers. Major platforms including Amazon, eBay, Etsy, and Walmart Marketplace collect Michigan sales tax on marketplace transactions. Sellers using these platforms are not required to collect on marketplace sales but remain responsible for direct sales.

What are the penalties for sales tax non-compliance in Michigan?

Michigan imposes penalties for late filing and late payment, typically 5-10% of the tax due per month (capped at 25-50%). Interest accrues on unpaid balances at a rate set annually. Failure to file returns can result in the state estimating your liability and potentially revoking your sales tax permit. Fraud or willful evasion can result in criminal penalties including fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Michigan Department of Treasury.