Michigan Sales Tax Overview
Michigan’s sales tax rate is 6% for most goods and services. Some items are exempt from sales tax, such as groceries, prescription drugs, and some clothing. To claim a sales tax exemption, buyers must provide exemption certificates, such as the Michigan Sales and Use Tax Certificate of Exemption (Form 3372).
The Michigan sales tax applies to the total price of taxable items sold to end consumers. It does not apply to sales between businesses. Use tax applies if sales tax was not charged initially. Michigan has no local sales taxes. Sales tax returns are due by the 20th day of the month after the sales occurred.
Obtaining Sales Tax Exemption in Michigan
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How do I get a sales tax exemption in Michigan? Sales and use tax certificates of exemption can be a bit of a hassle, but in Michigan, they are an absolute necessity. So take the time to get certificates for each of your vendors to ensure full compliance with your state’s tax regulations.
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A Certificate of Exemption resale certificate is obtained by filling out Form 3372 from the Department of Treasury titled Michigan Sales and Use Tax Certificate of Exemption. Filling out the 3372 is pretty straightforward, but it is critical for the seller to gather all the information.
Sales Tax Exemptions and Special Rates
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Michigan provides an exemption from sales or use tax on tangible personal property used in tilling, planting, caring for or harvesting things of the soil, in the breeding, raising or caring of livestock poultry or horticultural products for further growth.
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Many states have special, lowered sales tax rates for certain types of staple goods – such as groceries, clothing, and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Michigan: Clothing… Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.
Sales tax exemption forms can be downloaded from the Michigan Department of Treasury here. Michigan Sales Tax Calculator. Whenever you make a purchase at a licensed Michigan retailer, your sales tax will be automatically calculated and added to your bill.
The sales and use tax for Michigan is 6 percent for tangible personal property. Residential utilities are taxed at 4 percent. Goods that are subject to sales tax in Michigan include physical property, like furniture, home appliances, and motor vehicles. Groceries, prescription medicine, and gasoline are all tax-exempt.
Michigan State doesn’t collect sales tax on purchases of most groceries. While Michigan’s sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of food and meals in Michigan, including catering and grocery food. Sales of grocery food are exempt from the sales tax in Michigan.