The Michigan sales tax rate is 6%. It’s a single, statewide rate with no local additions, county surcharges, city-level variations, or special district overlays. That uniformity sets Michigan apart from other states and makes it one of the more straightforward places to manage sales tax compliance, whether you’re a local retailer or a remote seller who’s crossed the economic nexus threshold.

Below, we’ll discuss how the rate applies to different product categories, where remote sellers acquire obligations, how to calculate what you owe, and what the state’s tax rules mean for your day-to-day compliance work.

Highlights

• Michigan has a flat 6% sales tax rate that applies uniformly across all cities and counties in the state.

• Remote sellers must register and collect sales tax once they exceed the economic nexus threshold in annual sales or transaction volume into Michigan.

• Services are generally exempt from Michigan sales tax, but digital products and bundled sales require closer attention.

What is the Michigan sales tax rate?

Michigan’s state sales tax rate is 6%. The state doesn’t authorize counties or cities to apply their own local sales taxes. There is a lower 4% rate on sales of electricity, natural or artificial gas, and home heating fuels for residential use.

How does Michigan’s sales tax rate work?

Michigan’s 6% rate applies to retail sales of tangible personal property (e.g, physical goods sold to end customers). Services are generally exempt, which matters if your business sells both.

A few categories get specific treatment:

• Food for home consumption: Groceries aren’t taxed, but restaurant meals are.

• Prescription drugs: These are exempt, but over-the-counter (OTC) medications are taxable.

• Gasoline and diesel: Both fall under Michigan’s motor fuel tax structure rather than the general sales tax.

• Clothing: Unlike other states, Michigan doesn’t carve out apparel exemptions, so clothing is taxable.

• Manufacturing equipment: When used directly in production, this can qualify for an industrial processing exemption, which is relevant if you’re selling to manufacturers.

• Digital products: Prewritten computer software is taxable, while other digital goods (e.g., ebooks, electronic music, movies streamed over the internet) are not taxable.

Michigan also has a 6% use tax that mirrors the sales tax. If a Michigan resident or business buys a taxable item from an out-of-state seller that doesn’t collect Michigan sales tax, they owe use tax directly to the state.

Economic nexus

Once remote sellers exceed $100,000 in sales or 200 transactions in Michigan in the current or prior calendar year, they’re required to register with the Michigan Department of Treasury, collect 6% on taxable sales, and file returns on a schedule.

What are the local sales tax rates in Michigan?

Michigan doesn’t have local sales tax. The 6% standard sales tax applies everywhere in the state.

2026 Michigan sales tax range

What are Michigan’s sales tax rates by city?

Every city in Michigan has the same combined sales tax rate. Here’s a look at some of the state’s largest cities; note that the rates stay the same at 6%.

What are Michigan’s sales tax rates by county?

Michigan’s 83 counties don’t collect their own sales tax. The rate is 6% across the board. Here are some examples.

How do you calculate Michigan’s sales tax?

Since the rate is uniform at 6%, the calculation never changes based on where you’re selling within Michigan. You always multiply the taxable sale price by 0.06.

Determining what’s taxable can be more involved. Michigan has been extending its tax treatment of digital products, and if your catalog includes software-as-a-service (SaaS) or downloadable content, it’s worth confirming with a tax adviser before you build it into your checkout flow.

Stripe Tax applies Michigan’s 6% rate automatically to taxable transactions and updates as rules change. It also generates the records you’ll need at filing time.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, value-added tax (VAT), and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

• Simplify filing: Stripe Tax seamlessly integrates with filing partners, so your global filings are accurate and timely. Let our partners manage your filings so you can focus on growing your business.

Learn more about Stripe Tax, or get started today.