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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.

Michigan Enacts Click-Through and Affiliate Nexus Provisions

Michigan Governor Rick Snyder signed legislation that enacts affiliate and click-through nexus provisions, effective October 1, 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Telecom Companies Did Not Qualify for Industrial Processing Exemption in Michigan

Purchases of electricity by telecommunications companies were not eligible for Michigan’s industrial processing exemption because telecommunications signals do not qualify as tangible personal property.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Michigan Court Holds that Online Research Service is Not Subject to Sales Tax

The Michigan Court of Appeals has reversed a lower court\’s decision and found that Thomson Reuters is not liable for use tax on sales of its Checkpoint online research service to Michigan customers.

Medical Services Performed by Medicaid Managed Care Organizations Taxable in Michigan

Michigan has enacted legislation effective June 11, 2014, and retroactive to April 1, 2014, stating that medical services provided by Medicaid managed care organizations are subject to Michigan use tax.

Michigan Characterizes Cloud Computing as Nontaxable Service

Michigan has held that a taxpayer\’s purchases of cloud computing services are not subject to use tax.

SST Best Practices Matrix on Deal of the Day Vouchers

The Streamlined Sales and Use Tax (SST) Governing Board has issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are…

Michigan Extends Statute of Limitations

Michigan has enacted legislation that provides additional time periods for extending the four-year statute of limitations during which the Department of Treasury can assess Michigan corporate income tax, personal income tax, sales and use tax, and miscellaneous tax deficiencies, interest,…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Retailer that Contracted With Finance Companies Entitled to Bad-Debt Deduction in Michigan

A retailer that entered into private label credit card (PLCC) agreements with finance companies is entitled to a bad-debt deduction for Michigan sales taxes collected and remitted on purchases made by PLCC holders who subsequently failed to pay their credit…

Michigan Implements Changes to Accelerated EFT Program

Beginning January 1, 2014, Michigan has implemented changes to retailers subject to accelerated electronic funds transfer.

Michigan Aircraft Owner Not a Lessor Qualifying for Rental Receipts Election

An assessment for Michigan use tax due on the purchase of an aircraft was upheld because the taxpayer did not qualify as a lessor for the rental receipts election.

Michigan Aircraft Lessor Not Liable for Use Tax

A Michigan lessor of an aircraft was not liable for Michigan use tax on the purchase price of an aircraft because it was entitled to make an election to pay use tax on the lease payments it received.

Michigan Reminds Taxpayers of Use Tax Liability

The Michigan Department of Treasury is reminding residents that use tax may be owed on online purchases made from out-of-state retailers during the holiday shopping season.

Michigan Creates Tax Amnesty Program for 2011

The Michigan House of Representatives has passed and signed legislation creating a tax amnesty period for Michigan in 2011.

Michigan Steel Manufacturer’s Conveyor System Exempt

A Michigan steel manufacturer’s material handling conveyor system qualified for the industrial processing exemption from Michigan use tax. The exemption applied to production material handling because once the transportation of raw materials was initialized by the preliminary movement of the…

Concrete Manufacturer Vehicles Liable for Michigan Use Tax

The Michigan Department of Treasury found a concrete manufacturer liable for use tax on the use of pump trucks, tanker trailers, and a Smith trailer.

Medical Care Provided by Medicaid Plans Is Taxable in Michigan

Effective April 1, 2009, medical care serviced by a managed care entity, including Medicaid, is subject to Michigan use tax.

Michigan Agricultural Equipment Exemption Enacted

Effective January 6, 2009, the sale of machinery that is capable of simultaneously harvesting grain or other crops and biomass and machinery used for the purpose of harvesting biomass is exempt from Michigan sales tax.

Michigan Distribution of Phone Directories Taxable

The Michigan Department of Treasury denied a taxpayer\’s request for a use tax refund.

Michigan Use Tax on Select Services Repealed

Governor Jennifer Granholm signed HB 5408 on December 1, 2007. This law creates a business tax surcharge that replaces the service tax originally set under HB 5198. The law to repeal the use tax on select services was signed just…

Michigan Expands Tax To Include Specific Services

Michigan Expands Tax To Include Specific Services. Effective December 1, 2007, certain specified services will be taxable (6%) in a manner similar to tangible personal property. For a complete list of impacted services, please refer to the law referenced below.…