Michigan charges a 6 percent sales tax on most goods, with some exceptions for food and medicine
Michigan's sales tax rate is 6 percent statewide. This tax applies to the purchase price of tangible goods — things you can touch and take home. When you buy a shirt, a phone, or furniture in Michigan, the store adds 6 percent to your bill at checkout. The tax does not apply to services like haircuts, car repairs, or plumbing work, even though those cost money.
Some items are exempt from the 6 percent tax. Groceries — unprepared food you cook at home — are not taxed. Prescription medications are not taxed. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. This distinction matters because it changes what you actually pay.
The 6 percent rate is uniform across Michigan. Cities and counties cannot add their own local sales tax on top of it, the way some states allow. What you see as the tax rate in Detroit is the same rate in Traverse City or Marquette.
Key Takeaways
- Michigan sales tax is 6 percent on most goods, applied at the point of sale and collected by the retailer.
- Groceries and prescription medications are exempt; over-the-counter drugs are taxed.
- The rate is the same everywhere in Michigan — no city or county adds extra tax on top.
- Digital goods like e-books, software, and streaming services are taxed the same as physical goods.
- Restaurants and prepared food are taxed, but raw ingredients from a grocery store are not.
What items are taxed and what are not
The line between taxed and tax-free purchases is not always obvious. Groceries — bread, milk, vegetables, meat, cereal — are not taxed. But if you buy a rotisserie chicken from the grocery store deli, that is prepared food and is taxed. If you buy a sandwich from a restaurant, that is taxed. The rule is whether the food is ready to eat or requires preparation at home.
Clothing and shoes are taxed. School supplies like notebooks and pens are taxed. Books are taxed. Toys are taxed. Furniture is taxed. Appliances are taxed. The tax applies to nearly every physical object you purchase except groceries and prescription drugs.
Digital purchases follow the same rule as physical goods. E-books are taxed. Downloaded software is taxed. Streaming services like Netflix or Spotify are taxed. Digital games are taxed. The tax applies whether you receive a physical item or a digital file.
How the tax is collected and who pays it
The retailer — the store or business selling the item — collects the sales tax from you at the point of sale. They add it to your bill, you pay it, and they send it to the Michigan Department of Treasury. You do not file a separate form or send money directly to the state. The tax is built into the price you pay at checkout.
The retailer is responsible for collecting the correct amount and sending it to the state. If a store charges you the wrong tax, that is the store's error and the store's liability, not yours. Most modern cash registers calculate the tax automatically based on the item code and location.
Online purchases from out-of-state sellers have changed in recent years. If an out-of-state retailer has a physical presence in Michigan or meets certain sales thresholds, they must collect Michigan sales tax on orders shipped to Michigan addresses. If they do not, Michigan residents are technically supposed to pay "use tax" — a tax on purchases made outside the state — but this is rarely enforced for individual purchases.
Exceptions and special cases
Certain organizations do not pay sales tax on their purchases. Nonprofits, schools, and government agencies can provide a tax exemption certificate to retailers, and the retailer will not charge tax on those purchases. This is why a school can buy supplies without paying tax, but you cannot.
Resellers — people who buy goods to resell them — can provide a resale certificate to avoid paying tax on their initial purchase. They will collect tax from their customers instead. This prevents the same item from being taxed twice.
Some services are taxed and some are not. Repair services are generally not taxed. Installation services are generally not taxed. But if you buy a service bundled with a product — for example, a phone with a service plan — the product portion is taxed and the service portion may or may not be, depending on how the contract is structured.
What happens if you do not pay sales tax
As a consumer, you are not responsible for enforcing sales tax collection. The retailer collects it from you and sends it to the state. If a retailer fails to collect or send the tax, that is a violation of Michigan tax law and the state pursues the retailer, not the customer.
If you buy something and the retailer does not charge you tax when they should have, you have not broken the law. The retailer has. You are not required to track your purchases and file a return to pay tax the retailer missed.
The only exception is use tax, which applies to purchases made outside Michigan and brought into the state. Technically, Michigan residents owe use tax on those purchases, but enforcement is limited to businesses and high-value items. Individual consumers are rarely audited for use tax on personal purchases.
Sales tax on specific purchases
| Item or Service | Taxed? | Notes |
|---|---|---|
| Groceries (unprepared) | No | Bread, milk, vegetables, meat, cereal — anything you cook at home |
| Restaurant meals | Yes | Prepared food ready to eat |
| Deli prepared food | Yes | Rotisserie chicken, prepared salads, hot foods from grocery store |
| Prescription medications | No | Requires a prescription from a doctor |
| Over-the-counter drugs | Yes | Aspirin, cold medicine, vitamins, pain relievers |
| Clothing and shoes | Yes | All apparel and footwear |
| Haircut or salon service | No | Services are generally not taxed |
| Car repair | No | Labor is not taxed; parts may be taxed depending on context |
| Streaming services | Yes | Netflix, Spotify, gaming subscriptions |
| E-books | Yes | Digital books are taxed like physical books |
Frequently Asked Questions
Does Michigan have different sales tax rates in different cities?
No. Michigan has one statewide sales tax rate of 6 percent. Cities and counties cannot add their own local sales tax on top of it. The rate is the same whether you shop in Detroit, Grand Rapids, or any other Michigan city.
Is tax included in the price shown on the shelf?
No. The shelf price does not include sales tax. The 6 percent is added at checkout. If an item shows $10 on the shelf, you will pay $10.60 at the register (plus any applicable local taxes if the store is in a city with additional taxes, though Michigan does not allow this).
Do I have to pay sales tax on items I buy online from Michigan retailers?
Yes, if the retailer collects it. Most large online retailers now collect Michigan sales tax on orders shipped to Michigan addresses. Some smaller retailers may not. If tax is not collected at checkout, you may owe use tax, though this is rarely enforced for individual consumers.
Are groceries really not taxed at all?
Unprepared groceries are not taxed. This includes raw meat, fresh produce, bread, milk, eggs, and canned goods. But prepared foods — anything ready to eat — are taxed. A rotisserie chicken from the deli counter is taxed. A sandwich from a restaurant is taxed. Raw chicken from the butcher is not.
What if a store charges me the wrong amount of sales tax?
Tell the store immediately. The retailer is responsible for charging the correct tax. If they overcharged you, they should refund the difference. If they undercharged you, that is their error, not yours — you do not owe additional tax to the state.