# Michigan Sales Tax Guide (2026)

Canonical: https://trykintsugi.com/sales-tax-guides/usa/michigan
Published: June 17, 2026

Michigan applies a flat 6% rate with no local add-ons, and SaaS is exempt. Remote sellers trigger nexus at $100,000 or 200 transactions.

- **SaaS:** Exempt
- **Clothing:** Taxable
- **Groceries:** Exempt
- **Digital Goods:** Exempt

- **Effective date::** 
- **Scheduled change::** 

## Key Takeaways

Michigan charges a flat 6% state sales tax with no local sales taxes [1]. You have economic nexus once sales into Michigan exceed $100,000 or 200 separate transactions in the previous calendar year [2]. SaaS and cloud-accessed software are not taxable and neither are digital goods such as e-books and streaming, while groceries (food for home consumption) are exempt and clothing is taxable [3][4][1]. Request an informal conference within 60 days of an audit notice, with appeals to the Michigan Tax Tribunal [6].

## Taxability Snapshot

## Sales Tax Rates

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.

| Component | Rate | Scope |
| --- | --- | --- |
| State | 6.00% | Statewide |
| Local | none | — |
| Combined | 6.00% | Statewide |

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

## Registration or Nexus Threshold

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.

## Marketplace Facilitator Law

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]

## Filing Frequency & Deadlines

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.

#### Exemptions

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

## Resale & Exemption Certificates

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].

## Penalties

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.

## Audits & Appeals

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].

## Sources

- [1] [Michigan Treasury — Sales and Use Tax (6% rate, no local, groceries, clothing)](https://www.michigan.gov/taxes/business-taxes/sales-use-tax)

- [2] [Michigan Treasury — Remote Seller FAQ (economic nexus)](https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/remote-seller-faq)

- [3] [Michigan Treasury — RAB 2023-10 (remote-access software not taxable)](https://www.michigan.gov/taxes/rep-legal/rab/2023-revenue-administrative-bulletins/revenue-administrative-bulletin-2023-10)

- [4] [Michigan Treasury — Software Products Tax Treatment (digital goods not taxable)](https://www.michigan.gov/treasury/reference/tech/sales-and-use-tax-treatment-of-software-products)

- [5] [Michigan Treasury — Form 3372 (Certificate of Exemption)](https://www.michigan.gov/-/media/Project/Websites/taxes/Forms/SUW/3372.pdf)

- [6] [Michigan Treasury — Appeals (Tax Tribunal or Court of Claims)](https://www.michigan.gov/taxes/taxpayer-advocate/taxpayer-rights-rules-and-responsibilities/taxpayer-rights-during-an-audit/the-appeals-process/tax-tribunal-or-court-of-claims)

- [7] [Michigan Treasury — Register a New Business (MTO)](https://www.michigan.gov/taxes/business-taxes/new-biz)

- [8] [Michigan Department of Treasury — Marketplace Facilitator & Marketplace Seller FAQs](https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/marketplace-facilitator-seller-faqs)

Verified July 2026 against Michigan Department of Treasury published guidance.

## Frequently Asked Questions

### What is the Michigan sales tax rate in 2026?

A flat 6% statewide, with no local sales taxes anywhere in Michigan.

### What is Michigan's economic nexus threshold?

$100,000 in sales or 200 separate transactions into Michigan in the previous calendar year. Either one triggers nexus.

### Is SaaS taxable in Michigan?

No. Michigan does not tax SaaS, cloud-hosted software, or digital goods.

### Are groceries taxed in Michigan?

No. Groceries and prescription drugs are exempt from Michigan sales tax.

### When are Michigan sales tax returns due?

The 20th of the month following the reporting period, with an annual reconciliation due at the end of February.

### What is the penalty for late Michigan sales tax?

5% of the tax due, increasing 5% per month up to a 25% maximum, plus interest.

## Related Reading

- [Does Michigan Have Sales Tax on Clothing in 2026: A Guide for Businesses](/blog/does-michigan-have-sales-tax-on-clothing)

- [The Michigan Sales Tax Exemption: A 2026 Business Guide](/blog/michigan-sales-tax-exemption)

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