Michigan has a 6% state-wide sales tax with no local sales taxes, making compliance simpler than in many states. If you sell taxable goods or services in Michigan, you may be required to collect and remit sales tax. This guide explains who must register, what’s taxable, current tax rates, and filing requirements.
Michigan Sales Tax at a Glance (2026)
| Topic | Key Information |
| State sales tax | 6% |
| Local sales tax | None |
| Economic nexus | $100,000 in sales |
| Sales tax license required | Yes |
| Filing frequency | Monthly, quarterly, or annually |
| Registration | Michigan Treasury Online (MTO) |
When Do You Have Sales Tax Nexus in Michigan?
You generally have sales tax nexus if your business:
- Has a storefront, office, warehouse, employees, or inventory in Michigan
- Uses a third-party fulfillment center located in Michigan
- Exceeds $100,000 in sales to Michigan customers during the current or previous calendar year
- Creates affiliate or click-through nexus through qualifying Michigan-based partners
If you meet any of these conditions, you’ll generally need to register and collect Michigan sales tax.
One common mistake: sellers track their threshold based on the calendar year but forget that crossing it mid-year means they need to start collecting almost immediately, not wait until January 1 of the following year.
What Is Taxable in Michigan?
Most tangible personal property sold in Michigan is taxable, including:
- Clothing
- Electronics
- Furniture
- Household goods
Michigan also taxes prewritten software and certain digital products.
Common exemptions include:
- Sales made with a valid exemption certificate
- Certain nonprofit purchases
- Custom software (in many cases)
Most professional services are not taxable.
Michigan Sales Tax Rates
Michigan keeps things relatively simple compared to states like Colorado or Louisiana. The state has a flat 6% sales tax rate, and there are no additional local or county sales taxes.
How to Register for a Michigan Sales Tax License
Register online through Michigan Treasury Online (MTO).
- Create an MTO account.
- Complete the registration application.
- Receive your sales tax license.
- Begin collecting sales tax.
There is no registration fee, and applications are typically processed within 7–10 business days.
Marketplace Facilitator Rules
Marketplace facilitators such as Amazon, Etsy, Walmart Marketplace, and eBay generally collect and remit Michigan sales tax on marketplace sales. If you also sell through your own website or directly to customers, you’re responsible for collecting tax on those sales if you have nexus.
Filing Requirements
Collecting sales tax is only half the job. You must remit it to the state on time and with accurate reporting.
| Filing Frequency | Average Monthly Liability | Due Date |
| Monthly | $750 or more | 20th of the following month |
| Quarterly | $62.50–$749.99 | 20th after each quarter |
| Annual | Under $62.50 | February 28 |
You file through Michigan Treasury Online, and electronic filing is mandatory for most businesses. The state may adjust your filing frequency as your sales volume changes, so check your MTO account periodically for notifications.
Businesses must file required returns even if no tax is due.
Late filings may result in penalties, interest, and additional enforcement actions. Businesses that intentionally fail to collect or remit sales tax may face further civil or criminal penalties.
Michigan Sales Tax Compliance Checklist
- Determine whether you have nexus.
- Register through Michigan Treasury Online.
- Collect the correct 6% sales tax.
- Keep exemption certificates on file.
- File returns on time.
- Maintain accurate sales records.
FAQs
What is the Michigan sales tax rate?
Michigan has a 6% state-wide sales tax with no local sales taxes.
Who needs to collect Michigan sales tax?
Businesses with a physical presence or more than $100,000 in Michigan sales generally must collect Michigan sales tax.
How do I register for a Michigan sales tax license?
Register online through Michigan Treasury Online (MTO) before making taxable sales.
Does Amazon collect Michigan sales tax?
Yes, marketplace facilitators like Amazon, Etsy, Walmart Marketplace, and eBay generally collect and remit Michigan sales tax on marketplace sales.
What happens if I file my Michigan sales tax return late?
Late filings may result in penalties, interest, and other enforcement actions by the Michigan Department of Treasury.
Final Thoughts
Michigan’s statewide sales tax system is straightforward, but businesses still need to determine whether they have nexus, register before making taxable sales, collect the correct tax, and file returns on time.
Need help with Michigan sales tax registration, filings, or compliance? Contact our tax professionals today.
