The Michigan state sales tax rate is 6%. Some services are taxable. View the taxable services list from the Michigan Department of Treasury.
Digital goods or services delivered electronically are generally not taxed in Michigan, except pre-written computer software sold online. This is taxable.
To make a tax-free purchase, buyers need a Michigan sales tax exemption certificate from the Department of Treasury. Sellers collect and remit the 6% sales tax. Sales of electricity, gas, and heating fuels for homes are taxed at 4%.
Non Taxable Items
What items are non taxable in Michigan? Groceries, prescription drugs, and clothing are exempt from sales tax in Michigan. However, prepared food, non-prescription drugs, and personal items like toilet paper are taxable.
Michigan Sales Tax Rates
- Groceries: Exempt
- Clothing: 6%
- Prepared Food: 6%
- Prescription Drugs: Exempt
- Non-Prescription Drugs: 6%
General Tax Information
Michigan has no local sales taxes. The state sales tax rate is 6% for most items. Some exceptions like home heating fuels are taxed at 4%.
Businesses selling taxable goods in Michigan must register for a sales tax permit. There is no fee to register. Filers pay sales tax monthly, quarterly or annually depending on taxable sales volume. Returns are due the 20th day after the close of the tax period.
Taxable Services and Exemptions
Are repairs taxable in Michigan? Yes, repairs, improvements, ditching, or tiling land are also taxable.
Software programs downloaded electronically are taxable.
Income earners of all levels pay 4.25% tax on taxable income. The economic impact payments are not taxable income in Michigan. Property taxes are relatively high. Sales taxes are relatively low.
Registration and Charges
Companies or individuals can obtain a Michigan sales tax exemption certificate from the Department of Treasury to make qualifying tax-free purchases.
You would charge buyers in Michigan the 6% state sales tax rate. This is true whether based in or outside Michigan. There are no local sales tax rates. Effective April 2023, delivery and installation charges have different tax treatment per new legislation.