Michigan's statewide sales tax rate is 6 percent
Michigan charges a flat 6 percent sales tax on most retail purchases. This is the rate you pay on clothing, electronics, groceries (with exceptions), and most other goods at checkout. The rate does not vary by county or city — it is the same whether you are buying in Detroit, Grand Rapids, or a small town in the Upper Peninsula.
Some cities and counties add a local tax on top of the state rate, which means your total tax can be higher than 6 percent depending on where you shop. For example, a city might add 1 percent for local transit or schools, bringing your total to 7 percent. These local additions are not uniform across the state, so the final amount you pay depends on your location.
Key Takeaways
- Michigan's base sales tax is 6 percent statewide, applied at the point of sale to most goods.
- Some cities and counties add local sales tax on top of the state rate, raising your total to 7 percent or higher.
- Food and medicine are generally exempt from sales tax, though prepared foods and some items are taxed.
- Services like haircuts, repairs, and professional fees are usually not subject to sales tax in Michigan.
- You can find your exact local rate by entering your address on the Michigan Department of Treasury website or asking a retailer.
What items are exempt from Michigan sales tax
Not everything you buy is taxed. Unprepared food — groceries like milk, bread, vegetables, and meat — is exempt from sales tax. Once food is prepared or ready to eat, the tax applies. A sandwich from a deli counter is taxed; a loaf of bread from the shelf is not.
Prescription medications and medical devices are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. Insulin, diabetic supplies, and other prescribed medical equipment fall under the exemption as well.
Clothing and footwear under $100 per item are exempt from Michigan sales tax. A $75 pair of shoes is not taxed; a $150 coat is taxed on the full amount. This exemption applies to regular clothing only — costumes, athletic uniforms, and protective gear have different rules.
How local sales tax works in Michigan cities
Michigan allows cities and counties to impose their own sales tax on top of the state's 6 percent. These local rates vary widely and are set by individual municipalities. Some cities have no local tax at all; others add 1 to 2 percent or more.
The local tax is collected at the same time as the state tax — you do not pay it separately. When you check out, the register shows the combined total. The retailer then sends the local portion to the city or county government.
Because local rates differ, your total sales tax depends entirely on where you are shopping. Two towns 10 miles apart might have different rates. If you live near a city border, you may notice the difference when you shop in different locations.
Services that are not subject to sales tax
Michigan does not tax most services. A haircut, car repair, dental work, or plumbing job is not subject to sales tax. Professional services like accounting, legal advice, or consulting are also exempt. The tax applies to goods — tangible items you can hold — not to labor or expertise.
There are exceptions. If a service includes a product, the product portion may be taxed. For example, a car repair that includes new parts will be taxed on the parts but not on the labor. A salon that sells you shampoo charges tax on the shampoo but not on the haircut itself.
Finding your exact local sales tax rate
The Michigan Department of Treasury maintains a sales tax rate lookup tool on its website. You enter your address or city name, and it shows you the exact combined rate — state plus local — that applies in that location. This is the most reliable way to find your rate.
You can also call your city or county assessor's office and ask directly. Retailers in your area can also tell you the rate they charge. Because rates can change when local governments pass new tax measures, checking the official source is better than relying on an old receipt.
How sales tax is calculated at checkout
The sales tax is calculated on the subtotal of your purchase before any discounts or coupons are applied in most cases. If an item is on sale, tax is calculated on the sale price, not the original price. Coupons that reduce the price also reduce the taxable amount.
The tax is rounded to the nearest cent. If your total tax comes to $5.634, it rounds to $5.63. This rounding happens at the transaction level, not per item, so the final amount you see on the receipt is what you pay.
Frequently Asked Questions
Do I pay sales tax on online purchases from Michigan retailers?
Yes. Michigan retailers must charge sales tax on online orders shipped to Michigan addresses, just as they do for in-store purchases. The rate depends on where the item is being delivered. Out-of-state retailers may or may not charge Michigan tax depending on their policies and whether they have a physical presence in the state.
Is there sales tax on used items or secondhand goods?
Used items sold by regular retailers are taxed at the same rate as new items. However, private sales between individuals are generally not subject to sales tax. A used car sold by a dealership is taxed; a used car sold by a private owner is not.
What about tax on gasoline and fuel?
Gasoline and diesel fuel are not subject to the standard 6 percent sales tax. Instead, Michigan charges an excise tax per gallon, which is separate from sales tax. The excise tax rate changes periodically and is set by the state legislature.
Can I get a refund if I overpay sales tax?
If you believe you were charged incorrectly, contact the retailer first — they may issue a refund or credit. If the retailer does not resolve it, you can file a complaint with the Michigan Department of Treasury, though individual refunds are rare unless there was a clear error.
Do I need to pay sales tax if I buy something out of state and bring it to Michigan?
No. Sales tax is paid where the purchase is made, not where you live. If you buy something in another state and pay that state's sales tax, you do not owe Michigan sales tax on it. However, if you buy something tax-free in another state and bring it to Michigan, you do not retroactively owe Michigan tax.