Michigan Sales Tax on Trade-Ins Michigan: Sales Tax Handbook


Are Trade-Ins subject to sales tax?

While Michigan's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of trade-ins in Michigan. To learn more, see a full list of taxable and tax-exempt items in Michigan.

General Trade-Ins
In the state of Michigan, the credit for the agreed-upon value of a titled watercraft is always utilized as a part payment of the purchase price of any new or used watercraft is applicable to be excluded. The agreed-upon value of a motor vehicle or any recreational vehicle (up to a pre-specified maximum limit) may be used as partial payment of the purchase price of a new or used motor vehicle or a new or used recreational vehicle, is always excluded. It is recommended that readers reference cited authority for more information.

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Source: http://www.salestaxhandbook.com/michigan/sales-tax-taxability/trade-ins