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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.

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.…

Michigan Conforms to Existing Law by Amending Food and Drink Rules

The modified rules explain the tax treatment of bakeries, milk and dairy products, vending machines, water, and food for consumption.

Michigan Exempts Sponsorship of Certain Athletic Events

A recently enacted amendment to Michigan\’s tax law provides exemptions of retail sale of tangible personal property provided in a sponsor contract if the event meets certain criteria.

Reinstatement Fees Taxable In Michigan

Fees paid by customers to reinstate rental purchase agreements after a contract default are subject to Michigan use tax. The fees were not considered to be paid as a separate service, but rather part of the total price paid for…

Michigan Announces Change In Prepaid Gasoline Sales Tax Rate

The State of Michigan announced a change in the prepaid gasoline sales tax rate. Effective May 1, 2006, the new rate will be 12.7 cents per gallon. The Department is required to establish a new rate every six months unless…

Michigan Issues Directive on Delivery Fees

In an Internal Policy Directive, the Michigan Department of Treasury addressed delivery charges for shipments that include both taxable and exempt property.

Michigan Enacts Provision for Seller’s Amnesty

As of July 1, 2004, sellers who register to collect tax within 12 months of the state\’s participation with the SST Agreement will not be liable for sales taxes they did not collect or remit in the year preceding their registration.

SSTP registration does not create Michigan nexus.

With the passage of House Bill No. 5504, the Michigan legislature has established that registration under the multistate streamlined sales and use tax agreement does not create nexus with the state and would not be considered in determining whether nexus…

Michigan change in due date.

Under the “Streamlined Sales and Use Tax Revenue Equalization Act, H.B. 5505, which becomes effective September, 1, 2004, the due date of sales and use tax returns changes from the 15th to the 20th day of the month. (H.B. 5505,…

Michigan becomes 21st SSTP state

Effective September 1, 2004, Michigan law will conform to the provisions required by Streamlined Sales Tax Agreement, adding Michigan to twenty other Streamlined Sales Tax Implementing States.

Sale of computerized system for distribution of customized coupons and advertisements exempt in Michigan.

In the case of Catalina Marketing Sales Corp. v. Department of Treasury the “incidental to service test” was used to determine that, though tangible personal property, in the form of hardware and software installed by the taxpayer, was exchanged, the…

Michigan Use Tax Applicable On Lease of Aircraft

In a recent Michigan Court of Appeals case, the petitioner, an aviation company, argued that their purchase of an aircraft and then subsequent lease of that aircraft to a charter airline was not a taxable transaction subject to state use tax.

Michigan Nonlegend Drug Purchases Not Taxable

Michigan case Birchwood Manor, Inc. v Commissioner of Revenue found that the purchase of over-the-counter or \”nonlegend\” drugs for distribution to nursing home residents was exempt from use tax as a purchase of prescription drugs.

Michigan Vehicles Purchased To Be Eventually Resold Are Exempt From Use Tax

A car dealership was found not to be liable for any vehicles used in the interim before their resale in the Crown Motors of Charlevoix vs. Michigan Department of Treasury.

Michigan Aerospace Incentives Package

In attempt to lure aerospace manufacturer Boeing Co. to locate their new 7E7 aircraft manufacturing facility in Michigan, Governor Jennifer Granholm announced that the Michigan Economic Development Corporation has provided details concerning an incentives package to the company.

Michigan Container Exemption

The use of reusable containers in a manufacturer\’s assembly line that improved the efficiency of the line are exempt from Michigan use tax.

Michigan Revenue Division Eliminated

Effective December 23, 2002, the Revenue Division within the Michigan Department of Treasury was eliminated, for purposes of all Michigan taxes administered by the state. T

Michigan Charter Aircraft Taxable

A taxpayer was found to be liable for Michigan use tax when the plane they were selling was also used in a charter flight service.