Michigan: Sales Tax Handbook
Michigan Sales Tax Rate
|State Sales Tax||Local Sales Tax Range||Average Local Tax||Average Combined Tax||Max Combined Tax|
2023 Michigan Sales Tax Handbook
Michigan Table of Contents
- List of Local Sales Tax Rates
- Sales Tax Calculator
- Sales Tax Exemption Certificates
- Sales Tax Info For Businessowners
- Taxable vs. Non-Taxable Purchases
- Sales Tax on Cars & Vehicles
- More Information
Michigan's Sales Tax By The Numbers:
Michigan has a higher-than-average state sales tax rate, but the actual sales tax rates in most Michigan cities are lower than average when local sales taxes from Michigan's 163 local tax jurisdictions are taken into account.
Rankings by Average State + Local Sales Tax:
Ranked 38th highest by combined state + local sales tax
Ranked 27th highest by per capita revenue from state + local sales taxes ($904 per capita)
Rankings by State Sales Tax Only:
Ranked 8th highest by state sales tax rate
Ranked 21st highest by per capita revenue from the statewide sales tax ($852 per capita)
Printable PDF Michigan Sales Tax Datasheet
Michigan has a statewide sales tax rate of 6%, which has been in place since 1933.
Municipal governments in Michigan are also allowed to collect a local-option sales tax that ranges from 0% to 0% across the state, with an average local tax of N/A (for a total of 6% when combined with the state sales tax). The maximum local tax rate allowed by Michigan law is <span class='text-muted'>N/A</span>. You can lookup Michigan city and county sales tax rates here.
This page provides an overview of the sales tax rates and laws in Michigan. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Michigan Sales Tax Handbook's Table of Contents above.
What is exempt from sales taxes in Michigan?
Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Michigan taxes five types of commonly-exempted goods:
For more details on what types of goods are specifically exempt from the Michigan sales tax see Michigan sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Michigan? Taxation of vehicle purchases in particular are discussed in the page about Michigan's sales tax on cars.
Are services subject to sales tax in Michigan?
"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Michigan, specified services are taxable.
About the Michigan Sales Tax
The state of Michigan has relatively simple sales tax rate, and is one of the few states which does not have any local city or county taxes. The sales tax hasn't been changed since 1994, with a ballot measure to raise the tax to 7% failing in 2015.
There is also a use tax which is applicable to items which were brought into Michigan but were not purchased there.
It is worth noting that Michigan is considered to be a Streamlined Sales Tax State, which means that any out-of-state businesses who do not have any sales tax obligation per se, would nevertheless be encouraged to collect and remit sales tax."
Is the Michigan Sales Tax Destination-Based or Origin-Based?
Michigan is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Michigan from a Michigan vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.
Is Michigan a Streamlined Sales Tax State?
Michigan is a member of the Streamlined Sales and Use Tax Agreement, which means that the Michigan Department of Treasury has taken significant steps to simplify Michigan's sales tax rules and administration process.
Contact the Michigan Department of Treasury
The Michigan Sales Tax is administered by the Michigan Department of Treasury. You can learn more by visiting the sales tax information website at www.michigan.gov.
Phone numbers for the Sales Tax division of the Department of Treasury are as follows:
- Local Phone: (517) 636-6925
Learn More: Our Book Recommendations
If you would like to learn more about how to manage your Michigan sales taxes, we recommend the following books:
Small Business Taxes For Dummies
This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.Buy on Amazon
A Guide to Sales and Use Tax
This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.Buy on Amazon
Simplify Michigan sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.
Michigan Sales Tax Rates by Zip Code:
Need an updated list of Michigan sales tax rates for your business? Download our Michigan sales tax database!