Michigan Sales
Tax Rate

Michigan's general sales and use tax rate is 6 percent in 2026 and Michigan does not allow cities, counties or other local units to impose an additional sales tax. Qualifying food for home consumption is generally exempt while prepared food is taxable. Residential electricity, natural gas and home heating fuels use a reduced 4 percent rate.

What Is the Michigan Sales Tax Rate in 2026?

Michigan's general sales tax rate is 6 percent on taxable retail sales to the final consumer.

Because Michigan does not permit local sales taxes, the general combined rate remains 6 percent statewide. A taxable retail item in Detroit, Grand Rapids, Lansing or another Michigan city does not receive an extra city or county sales-tax percentage.

How to Calculate Michigan Sales Tax

For a standard taxable purchase, multiply the taxable sales price by 6 percent then add the tax to the price.

A $500 taxable retail purchase produces $30 of Michigan sales tax, making the total $530. A qualifying residential energy transaction subject to the reduced rate should use 4 percent instead.

Separately stated delivery and installation charges can be exempt under Michigan law when the seller separately states the charges on the invoice or similar document and keeps records that separately identify them.

Michigan Has No Local Sales Tax

Michigan has no city, county or other local sales tax, so the general statewide retail rate is 6 percent.

This makes location simpler than in states with multiple local sales-tax layers. The buyer's location can still matter for determining whether a sale is sourced to Michigan, but it does not change the standard percentage through a local sales tax.

Groceries Are Generally Exempt but Prepared Food Is Taxable

Michigan generally exempts food and food ingredients for human consumption, but prepared food is subject to sales and use tax.

Michigan's 2026 guidance defines prepared food to include food sold heated, food made from two or more ingredients mixed or combined by the seller plus food sold with qualifying eating utensils provided by the seller.

There are important exclusions. Food that is only cut, repackaged or pasteurized can remain exempt and raw food requiring cooking by the consumer is generally not treated as taxable prepared food solely because it is packaged for sale.

• Grocery-type food for home consumption is generally exempt.
• Prepared food sold heated or ready for immediate consumption is generally taxable.
• Alcoholic beverages and tobacco do not qualify for the food exemption.
• Direct sales to qualifying governmental purchasers can be exempt.
• Certain resale, industrial-processing and agricultural purchases can qualify for statutory exemptions.

Michigan Sales Tax Licenses for Retailers

Businesses that sell tangible personal property to final consumers in Michigan generally need a Michigan sales tax license.

Michigan Treasury states that there is no fee for the sales tax license. Once registered, the license is generally renewed automatically each year unless the business requests cancellation.

Wholesalers that sell only for resale have different treatment and should retain resale documentation. A business that makes both retail and wholesale sales should maintain records that separate taxable retail sales from exempt resale transactions.

Michigan Economic Nexus for Remote Sellers

A remote seller has Michigan economic nexus when, in the previous calendar year, it exceeds $100,000 of gross Michigan sales or completes 200 or more separate Michigan transactions.

Michigan counts gross sales for the threshold, including taxable, nontaxable and exempt sales. The transaction test also counts both taxable and nontaxable transactions.

A remote seller that exceeds the threshold generally begins collecting and reporting Michigan sales or use tax on January 1 of the following calendar year. Physical presence can create nexus independently of the economic threshold.

Marketplace Facilitators Use the Same Economic Nexus Threshold

Michigan marketplace facilitators and marketplace sellers can have economic nexus when gross Michigan sales exceed $100,000 or Michigan transactions exceed 200 in the previous calendar year.

For a marketplace facilitator, the threshold calculation includes both its direct Michigan sales and sales facilitated for marketplace sellers. Marketplace sellers should confirm which sales the facilitator reports and whether separate direct sales create an additional filing obligation.

Michigan Use Tax Is the Companion to Sales Tax

Michigan use tax generally applies at 6 percent when taxable property is brought into or used in Michigan and the required sales or use tax was not collected.

Michigan provides credit for qualifying sales or use tax legally paid to another state. Use tax can also apply to certain services such as telecommunications and hotel or motel accommodations.

Sales Tax Is Separate From Michigan Income Tax and Payroll

Michigan sales tax applies to retail transactions and should not be treated as an employee payroll deduction.

For individual income-tax questions, use the Michigan income tax guide. After a real payroll run is complete, the Michigan pay stub generator can organize actual wages and payroll deductions without mixing retail tax into the statement.

For a broader lawful payroll workflow, the online paystub tool should be used only with accurate employment and payment information.

Tax Information and Responsible Use

This guide is for general sales-tax planning and business recordkeeping. It does not replace current instructions from the state tax authority or advice for a specific transaction.

Sales and use tax can depend on the product or service, delivery location, exemption status, seller activity and transaction date. Businesses should use current official rate tables and maintain records that support the tax collected or exemption claimed. Online PayStub is intended for lawful payroll, business and recordkeeping purposes and should be used only with genuine payroll information.