Michigan Sales Tax Guide: Rate, Rules & Filing

Michigan applies a flat 6% state sales and use tax with no local sales taxes, so every taxable sale is 6% regardless of location — one of the simplest rate structures in the country.

Because the rate is uniform, there is no city-by-city variation to track.

To look up the combined rate for a specific Michigan address, use our US sales tax calculator.

Michigan's use tax is the 6% companion to its sales tax. It is owed on taxable items brought into Michigan, and on purchases made online, by mail or by phone from out-of-state sellers that don't collect Michigan tax, and it also applies to certain services, including telecommunications and hotel and motel stays [1]. Michigan gives credit for sales tax paid to another state, and, as with sales tax, no city or county can add a local use tax [1].

Businesses report use tax on the same sales, use and withholding return as sales tax, monthly, quarterly or annually as Treasury assigns, with an annual return due February 28 [1]. Individuals report use tax on their Michigan income tax return.

Michigan economic nexus is triggered when your sales into the state exceed $100,000 or 200 separate transactions in the previous calendar year. Either threshold creates an obligation. Physical presence creates nexus immediately.

Michigan has required marketplace facilitators with economic nexus to collect and remit the state's 6% sales tax on facilitated sales since January 1, 2020, under MCL 205.52c and 205.52d (2019 PAs 143 and 144). A facilitator has nexus once its combined direct and facilitated sales to Michigan purchasers exceed $100,000 or reach 200 or more transactions in the previous calendar year — the same threshold used for Michigan's general remote-seller economic nexus. A marketplace seller generally does not separately collect or remit tax on sales made through a facilitator with Michigan nexus, provided it supplies the facilitator sufficient and accurate information, though it remains responsible for sales made outside that marketplace or through a facilitator without Michigan nexus.[8]

Michigan assigns monthly, quarterly, or annual filing based on tax liability. Returns are due the 20th of the month following the reporting period, with an annual reconciliation return due at the end of February. For the portal, return, and step-by-step, see our guide to filing Michigan sales tax online.

Michigan exempts groceries and prescription drugs. SaaS, cloud-hosted software, and digital goods such as eBooks and streaming are not taxable in Michigan.

Michigan buyers give the seller Form 3372 (Sales and Use Tax Certificate of Exemption) to purchase for resale or another exempt use; it is kept by the seller rather than filed with the state [5]. A blanket certificate stays in effect for up to four years while a recurring relationship continues [5].

For the official form, multistate certificate rules and expiry, see the Michigan resale certificate guide.

Late filing or payment carries a penalty of 5% of the tax due, increasing by 5% per month up to a 25% maximum, plus interest from the due date. Our Michigan filing guide lists late filing penalties, interest, and what to do if you missed a return.

After an audit, you can request an informal conference within 60 days of the Department's notice [6]. A final assessment can then be appealed to the Michigan Tax Tribunal within 60 days, or to the Court of Claims within 90 days after paying the tax [6].

• [1] Michigan Treasury — Sales and Use Tax (6% rate, no local, groceries, clothing)

• [2] Michigan Treasury — Remote Seller FAQ (economic nexus)

• [3] Michigan Treasury — RAB 2023-10 (remote-access software not taxable)

• [4] Michigan Treasury — Software Products Tax Treatment (digital goods not taxable)

• [5] Michigan Treasury — Form 3372 (Certificate of Exemption)

• [6] Michigan Treasury — Appeals (Tax Tribunal or Court of Claims)

• [7] Michigan Treasury — Register a New Business (MTO)

• [8] Michigan Department of Treasury — Marketplace Facilitator & Marketplace Seller FAQs

Verified July 2026 against Michigan Department of Treasury published guidance.

• Does Michigan Have Sales Tax on Clothing in 2026: A Guide for Businesses
• The Michigan Sales Tax Exemption: A 2026 Business Guide