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Michigan sales tax, explained.

Thresholds, rates, taxability, filing schedules, and the Michigan Department of Treasury — everything a remote seller needs to know about Michigan, on one page.

Economic nexus threshold
$100,000
Statewide base rate
6%
Transaction threshold
200
DetroitWarrenAnn ArborLansingGrand Rapids
Michigan · major filing jurisdictions
Nexus · Michigan

When you owe sales tax in Michigan.

Either physical presence or crossing the economic nexus threshold creates the obligation to register, collect, and remit. Michigan uses an OR-type test — hitting either $100,000 in sales or 200 separate transactions in the previous calendar year is enough.

Economic nexus
Threshold
$100,000 in gross sales, or 200 or more separate transactions, delivered into Michigan in the previous calendar year
Measurement type
Sales OR transactions — crossing either metric triggers the obligation
Measurement period
Previous calendar year
Included
Gross sales into Michigan — refund transactions are excluded; all other sales count toward both the dollar and transaction tests
Marketplaces
Only refund transactions are excluded from the threshold count — marketplace-facilitated sales are not carved out, so sales made through Amazon, Etsy, or similar platforms count toward your $100,000 or 200-transaction threshold
Physical nexus
Office or place of businessEmployees / remote staffWarehouse or inventoryThird-party fulfillmentAgents or representatives

Any physical presence in Michigan — including a single remote employee, inventory stored in a Michigan warehouse, or a dependent agent acting on your behalf — creates physical nexus from the first sale. No sales threshold applies to physical nexus.

Rates · Michigan

One rate, statewide.

Michigan is one of the simplest states for rate compliance: the 6% sales tax is set by the state constitution and applies uniformly everywhere in Michigan. There are no county add-ons, no city surtaxes, and no district taxes — the rate on every invoice is 6%.

JurisdictionCombined rateTangible propertyDigital goodsSaaSServices
MichiganStatewide rate6%6%0%0%0%
Detroit6%6%0%0%0%
Grand Rapids6%6%0%0%0%
Warren6%6%0%0%0%
Ann Arbor6%6%0%0%0%
Lansing6%6%0%0%0%

Michigan's 6% rate is embedded in the state constitution and applies uniformly across all cities and counties. No local jurisdictions may levy additional sales tax. Digital goods, SaaS, and most services are not subject to Michigan sales tax. Rates verified as of June 11, 2026.

Need to confirm the rate for a specific Michigan address? Our calculator verifies the rate for any Michigan address — always 6% statewide, instantly confirmed.

Open the sales tax calculator
Taxability · Michigan

Is your product taxable in Michigan?

Michigan taxes tangible personal property and very little else. SaaS, digital goods, and most services are not subject to Michigan sales tax — making the state relatively straightforward for software and digital businesses.

Product categoryStatusWhat to know
Tangible personal propertyTaxablePhysical goods sold and delivered into Michigan are taxable at the flat 6% statewide rate, regardless of delivery city.
SaaS & cloud softwareNot taxableRemotely-accessed software — both B2B and B2C — is not subject to Michigan sales tax. No download means no taxable transfer of tangible property.
Digital goodsNot taxableElectronic downloads, streaming media, e-books, and other digital products delivered electronically are exempt from Michigan sales tax.
Professional servicesNot taxableConsulting, legal, accounting, design, and similar professional services are not taxable in Michigan — unless they are part of producing or transferring a physical good.
General servicesNot taxableMost services performed in Michigan are not subject to sales tax. Michigan's use tax can apply to certain taxable goods used in the state, but stand-alone service transactions are generally exempt.
Bundled hardware + softwarePartialWhen taxable hardware is sold with non-taxable software, itemizing the invoice protects the software portion. Lump-sum charges may result in the entire amount being treated as taxable.
Filings · Michigan

Filing schedules and due dates.

The Michigan Department of Treasury assigns your filing frequency at registration based on your expected tax liability, and may adjust it over time. All filings go through Michigan Treasury Online (MTO). Returns are due even for periods with zero taxable sales.

FrequencyReturnDue dateWho it applies to
MonthlyMost common for active sellersMichigan Sales, Use and Withholding Tax Return (Form 5080)20th of the month following the filing periodSellers with higher monthly tax liability, as assigned by the Department of Treasury
QuarterlyMichigan Sales, Use and Withholding Tax Return (Form 5080)20th of the month following the end of the quarter — Apr 20, Jul 20, Oct 20, Jan 20Sellers with moderate tax liability, as assigned at registration
AnnualMichigan Annual Sales, Use and Withholding Tax Return (Form 5081)February 28 for the prior calendar yearSmaller sellers with low annual tax liability, as assigned by the Department of Treasury

Crossed the threshold, or about to?

A Commenda expert will review your Michigan exposure, register you with the Michigan Department of Treasury via Michigan Treasury Online, and take over the filing calendar — usually within a week.

The state authority

Michigan Department of Treasury — the tax authority.

The Michigan Department of Treasury administers all state sales and use tax through Michigan Treasury Online (MTO). One account covers registration, filing, payments, and account management — no separate local portals are required.

michigan.gov/taxes/business-taxes

Registration requires a Tax Portal username and password. Your State Tax ID (format XXXXXXX-XX) is assigned upon registration and used for all subsequent filings.

What you can do there
  • Register for a Sales Tax License

    Michigan requires a Sales Tax License before you collect tax. Registration is completed through Michigan Treasury Online at no charge.

  • File returns and pay through MTO

    All monthly, quarterly, and annual returns — plus use tax — are filed and paid in a single MTO account.

  • Confirm the rate for any Michigan address

    Michigan's flat 6% rate applies statewide, but the Treasury's tools can confirm taxability for specific product types.

  • Verify a Michigan exemption certificate

    Check that a customer's exemption claim is valid before honoring it — the burden of proof rests with the seller.

Exposure & exemptions · Michigan

If you're behind, or your buyers are exempt.

Back-period exposure & voluntary disclosure

Michigan participates in the Multistate Tax Commission's voluntary disclosure program, and out-of-state sellers can also apply directly with the Michigan Department of Treasury before the state contacts them.

Lookback
Typically limited to 4 years under a VDA — versus an unlimited lookback if the state audits you first
Penalties
Generally waived under the program for cooperating taxpayers
Interest
Still due on the unpaid tax — interest relief is limited
Condition
The state must not have already contacted you before you apply — disclosure must be voluntary

Exemption certificates accepted

Collect a valid certificate at the time of sale and retain it in your records — Michigan places the burden of proof on the seller to show an exemption is properly supported.

Resale
Michigan Sales Tax Exemption Certificate (Form 3372) — used for purchases for resale or other exempt purposes
Multi-state (MTC)
MTC Uniform Sales and Use Tax Certificate accepted; Michigan is not an SST member state
Industrial / manufacturing
Machinery, equipment, and raw materials used in manufacturing or processing are exempt under Michigan law
Agricultural
Farm equipment, feed, seed, and certain agricultural inputs are exempt when used in commercial farming

FAQ · Michigan

Michigan questions, answered.

The questions remote sellers ask us most about Michigan sales tax.
Read our FAQ library

Michigan has a single flat sales tax rate of 6% that applies statewide. There are no county or city add-on rates, so the rate is 6% regardless of where in Michigan the delivery address is located — Detroit, Grand Rapids, Ann Arbor, or anywhere else.

Michigan uses an OR-type threshold: you have economic nexus if you made $100,000 or more in gross sales into Michigan, OR completed 200 or more separate transactions into Michigan, during the previous calendar year. Hitting either threshold creates the obligation to register and collect.

Yes. Michigan only excludes refund transactions from the threshold calculation. Sales made through marketplace facilitators such as Amazon or Etsy count toward both your $100,000 sales threshold and your 200-transaction count, even when the marketplace collects the tax on those individual sales.

No. Remotely-accessed software — both B2B and B2C — is not subject to Michigan sales or use tax. Michigan's tax applies to tangible personal property, and cloud software accessed over the internet without any download does not constitute a transfer of tangible property.

No. Electronic products delivered digitally — including downloaded software, streaming media, e-books, and digital music — are exempt from Michigan sales tax. Only physical goods transferred in Michigan are subject to the tax.

Under Michigan's economic nexus rule, the obligation applies beginning January 1 following the calendar year in which you exceeded the threshold. If you cross either the $100,000 or 200-transaction mark at any point during the prior year, you must be registered and collecting by January 1 of the next year.

Yes. A single remote employee working in Michigan creates physical nexus immediately, regardless of your sales volume. Physical nexus in Michigan has no minimum sales threshold — registration is required from your first taxable sale once any physical presence exists.

Yes. Commenda monitors your Michigan exposure, registers you with the Michigan Department of Treasury, calculates the correct 6% rate on every transaction, and files each return on your assigned schedule. Book a call to see it on your own data.

United States

Sales tax, state by state.

* No state-level sales tax. Alaska's local jurisdictions still enforce economic nexus through the ARSSTC.