This blog was last updated on September 10, 2025
Michigan imposes a statewide sales and use tax rate of 6%. The state does not allow local jurisdictions to levy additional sales taxes.
Michigan is also part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. The program currently includes 24 states working to reduce the compliance burden for remote sellers.
What’s Taxable in Michigan?
Michigan sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.
Examples of taxable items and services include:
- Clothing
- Prewritten computer software
- Non-prescription medical items or drugs
- Telecommunication services
- Certain installation or repair services
- Software as a Service (SaaS)
Sales Tax Nexus in Michigan
A seller is liable to collect and remit Michigan state sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
MI: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Michigan.
MI: Economic Nexus
Michigan enforces economic nexus for remote sellers. If your business has:
- Over $100,000 in sales, or
- More than 200 transactions in Michigan during the previous calendar year,
Then you are required to register for and collect Michigan sales tax.
Learn more on the Michigan Department of Treasury’s Remote Seller page.
How to Register for a Michigan Sales Tax License
Businesses or individuals selling tangible personal property to Michigan consumers must register to collect sales tax. Registration can be completed through Michigan Treasury Online.
New business registration instructions
MI Sales Tax Exemptions
Certain sales in Michigan are considered generally exempt from the sales/use tax requirements.
Exempt Products and Services
- Most services (unless Michigan statutes specify otherwise)
- Food and food ingredients
- Agricultural items
- Medical equipment
- Digital goods (digital books, digital audio-visual works, digital audio)
Entity-Based Exemptions
Additionally, Michigan exempts sales to certain entities from the sales/use tax, including the following:
- Certain qualified nonprofit entities
- 501(c)(3) and 501(c)(4) organizations
- Churches and houses of religious worship
- Nonprofit schools, hospitals and homes for children and aged persons
- Certain wholesalers
- Retailers selling for resale
- Industrial processors
- Schools
- Government
How to Claim Sales Tax Exemption in Michigan
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury accepts Form 3372 as the most commonly used form.
Additional guidance on acceptable exemption formats can be found in RAB 2016-14.
MI Filing and Remittance Requirements
Michigan offers multiple methods for filing and remitting sales and use tax:
- E-filing through Michigan Treasury Online (MTO)
- Simplified Electronic Return (SER) for SST participants and their affiliates
- Paper filing:
- Form 5080
- Form 5081
- Form 5088 (use tax)
Taxpayers with more than $720,000 in sales or use tax liability for the preceding calendar year are required to pay their taxes electronically on an accelerated schedule. For more details see the Accelerated EFT Filers page.
Frequently Asked Questions
Does Michigan have sales tax holidays?
No, Michigan does not currently offer sales tax holidays
Are there any special seller fees in Michigan?
No, Michigan does not charge additional fees specifically for collecting or remitting sales tax. However, businesses that file late or incorrectly may be subject to penalties and interest. Large taxpayers may also be required to follow accelerated electronic filing rules.
Can I use the Simplified Electronic Return (SER) in Michigan if I’m not in the SST Model 1 program?
Yes. Michigan accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
Looking for an easier way to manage sales tax in Michigan and beyond? Learn how Sovos simplifies compliance.