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Michigan Sales Tax

On this page you will find handy sales and use tax information about Michigan.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Michigan that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000% The state has reduced rates for sales of certain types of items.
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

10/1/2015
AFFILIATE NEXUS

10/1/2015
ECONOMIC NEXUS

10/1/2018 – see state notice
MARKETPLACE NEXUS

1/1/2020
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

May 15, 2011 - June 30, 2011

Go to Michigan Amnesty Page
AMNESTY INCLUSION PERIODS

Taxes due prior to January 1, 2010.

TAX TYPES AND CONDITIONS

All state taxes administered through the Revenue Act.
AMNESTY BENEFITS

Civil and criminal penalties waived; any liability found due after amnesty subject to additional 20% penalty.

Administration Information
Streamlined Sales Tax Status

Full Member
NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Michigan Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: Agriculture, Industrial Processing, Rolling Stock, Qualified Data Centers

 

Entity types of exemptions: 501(c)(3) and 501(c)(4) organizations; churches; hospitals; schools; government

 

Michigan Exemption Certificate Forms
State Links
State Tax Web Page

Michigan Department of Treasury
Rate Look-Up Page

Michigan Sales Tax Rate Look-Up
Registration Link

Register for Michigan Sales Tax
History & Fun Facts
HISTORY

  • The Michigan General Sales Tax Act took effect June 28, 1933. Sales for resale, government purchases, and isolated sales were exemptions originally included in the Act. Michigan use tax was enacted four years later, effective October 29, 1937.
  • A Michigan sales tax increase from 3 to 4 percent was approved by voters in 1960 effective in 1961. In 1994, voters approved a constitutional amendment to increase the sales and use tax rate as part of a school finance reform package. An additional 2 percent was added for a total state-wide rate of 6 percent, where the rate stands today.
FUN FACTS
  • The Michigan Department of Treasury has indicated that it utilizes a three-factor test to make a determination of whether property qualifies as tangible personal property or real property for purposes of sales and use tax.

Your Guide to Sales Tax in the Midwest

To catch you up and cut down your research time, we’ve compiled some of the essential Midwestern sales tax trends for 2024 that you need to know.

Michigan Issues Guidance on Sales and Use Tax Refund Procedures

The Michigan Department of Treasury (Department) has issued a bulletin providing guidance on how sellers and purchasers can request refunds of Michigan sales and use tax.

Michigan’s Data Center Tax Reporting: What You Need to Know

Michigan\’s Treasury Department now requires data center operators claiming sales or use tax exemptions for equipment sales or purchases to report annually using Form 5726.

Michigan Issues Bulletin Addressing Digital Goods

Michigan issued a revenue administrative bulletin (RAB 2023-10) addressing the taxation of computer software and digital products.

Michigan Updates Guidance on Taxability of Lease Transactions

Michigan has updated its guidance on the sales and use tax treatment of leases.

Lawn Care Company Denied Agricultural Sales and Use Tax Exemption in Michigan

The Michigan Supreme Court affirmed a lower court’s decision stating that a lawn care company is not entitled to the state’s agricultural exemption for property it uses to maintain lawns and landscaping.

Michigan Provides Guidance on Taxability of Delivery and Installation Charges

Effective April 26, 2023, delivery and installation charges are excluded from the “sales price” and “purchase price” for purposes of Michigan sales and use tax if conditions are met.

Michigan Court of Appeals: Recycling machines do not qualify for Industrial Processing Exemption

A Michigan Court of Appeals on July 21, 2022 upheld a ruling that the seller of recycling machines did not qualify for the state’s industrial processing exemption.

Michigan Guidance on Prepared Food

On March 31, 2022, a Revenue Administration Bulletin was issued by the Michigan Department of Treasury explaining how sales and use tax will be handled on prepared foods and cooked meals.

Michigan Simplifies Taxation of Heavy Equipment Rentals

Michigan simplified their taxation of heavy equipment rentals by exempting these rentals from personal property tax and imposing a 2 percent excise tax on rental transactions of heavy equipment.

Retailer Exempt from Mail Tax in Michigan

Michigan Court upheld that Bed Bath & Beyond is not responsible for paying use tax on certain marketing materials that were mailed to state residents because the responsibility was given to an out-of-state marketing agency.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Michigan Appeals Court Upholds Ruling that Direct Mail Advertising Mailed to Customers in State Not Subject to Use Tax

The Michigan Court of Appeals handed down a ruling on July 8, 2021 affirming a lower court decision that use tax is not due by a retailer on advertising materials shipped to Michigan customers by an out of state direct mail company.

Michigan Holds that Recycling Machines Qualify for Industrial Processing Exemption

Michigan held that sales of container recycling machines qualify for the state’s sales and use tax exemption on machinery used in industrial processing.

Medical Instruments Shipped with Tangible Personal Property Subject to Use Tax in Michigan

Michigan held that an out-of-state manufacturer of orthopedic implants was subject to use tax on medical instruments that it provides in conjunction with sales of the implants.

Lawn Care Company Does Not Qualify for Michigan Agricultural Exemption

A company that provides lawn and ornament plant care services did not qualify for Michigan’s agricultural exemption.

Sellers May Be Contacted About Other Taxes Under New Streamlined Sales Tax Governing Board Rule

Sellers registered through SSTP may be contacted about other taxes in the member states where they register with the SSTP.

Michigan Enacts Marketplace Nexus Legislation

Michigan has enacted new tax remittance requirements for marketplace facilitators, effective January 1, 2020.

Michigan Announces New Form for Customer Refund Requests

Effective January 1, 2019, customers seeking sales tax refunds from the Michigan Department of Treasury must use a new form.

October 1, 2018 Remote Seller Deadline for Multiple States

The October 1, 2018 remote seller compliance deadline is approaching for a number of states. Click on the links below for our previous news items with more details. Alabama Enacts Economic Nexus Provision Illinois Enacts Economic Nexus Legislation Indiana Enacts…

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Michigan Warns Taxpayers of Tax Application Scam

The Michigan Attorney General has issued a consumer alert warning taxpayers of a scam that involves a company offering sales tax application processing.

Michigan to Require Remote Seller Sales Tax Collection

Michigan will require remote sellers to register and collect sales tax if they meet the state’s economic nexus standard, effective October 1, 2018.