Unsure where you owe sales or use tax
Run Your Nexus Risk CheckBusinesses that sell products or services into Detroit, Michigan may trigger economic nexus if their total sales into Michigan exceed the state threshold. Michigan enforces a statewide economic nexus rule. Once a remote seller exceeds this threshold, the business must register for Michigan sales tax and begin collecting tax on taxable transactions shipped to customers in Detroit and other Michigan jurisdictions.
Economic nexus applies to ecommerce sellers, SaaS companies, marketplace sellers, and other remote businesses delivering goods or services into Michigan.
| State | Revenue Threshold | Transaction Threshold | Measurement Period |
|---|---|---|---|
| Michigan | $100000 | 200 transactions | Previous 12 months |
If a remote business exceeds $100000 in total sales into Michigan during the Previous 12 months, economic nexus is established and sales tax collection becomes mandatory.
Detroit applies local sales taxes in addition to the Michigan state sales tax. Once economic nexus is triggered, remote sellers must collect the combined state and local tax rate applicable to transactions delivered to customers in Detroit. Michigan uses destination based sourcing for remote sellers. This means the tax rate applied is based on the customer's shipping address in Detroit.
Tracking nexus exposure across multiple states can become complex as businesses grow. Companies selling into Detroit must track rolling revenue totals, monitor transactions, and evaluate economic nexus thresholds in Michigan and every other state where they operate. TaxMap analyzes sales data, applies state nexus rules, and identifies where businesses may have triggered tax obligations.