Unsure where you owe sales or use tax
Run Your Nexus Risk CheckBusinesses selling products or services in Michigan must collect sales tax based on the combined state and local tax rates that apply to transactions within the jurisdiction. Sales tax rates often include multiple components such as state tax, county tax, and city tax. Understanding the sales tax structure in Michigan helps businesses calculate tax accurately and remain compliant with state tax laws. Businesses unsure whether their activity has triggered tax obligations should evaluate nexus exposure first.
Economic Nexus CalculatorUse the calculator to estimate sales tax for transactions delivered to Michigan.
The base statewide sales tax rate in Michigan is: 6.00%
Local governments may apply additional taxes depending on the county or city where the sale occurs.
Local jurisdictions in Michigan may apply additional sales taxes.
Average local rate: 0.00%
These local taxes vary across counties and cities.
Use the TaxMap calculator to estimate the total sales tax for transactions delivered to California.
The combined average sales tax rate in Michigan is: 6.00%
However, the exact tax rate depends on the specific city where the transaction occurs.
Examples of city-level tax rates include:
Businesses selling into Michigan may be required to collect sales tax once they exceed economic nexus thresholds.
Typical threshold: $100000 revenue
Businesses can review nexus rules here: Economic Nexus by State
Businesses that establish nexus must register with the appropriate tax authority before collecting tax.
Sales tax calculations depend on several components:
Businesses selling across multiple states often use automation tools to calculate sales tax and monitor nexus thresholds.
TaxMap helps businesses analyze multi-state sales activity and determine where tax obligations may exist.
The platform helps companies:
Businesses selling into Michiganshould also evaluate whether they have triggered economic nexus.
Check Your Economic Nexus Exposure