Michigan's Sales Tax Rate and What You Pay
Michigan's statewide sales tax is 6 percent. This applies to most goods you buy in stores, online, and through mail order when shipped to a Michigan address. The tax is added at checkout and collected by the retailer, who sends it to the state.
Some counties and cities add a local tax on top of the state rate. These local additions range from 0 to 2 percent, so your total sales tax can be anywhere from 6 percent to 8 percent depending on where you live. The total rate is what appears on your receipt.
You pay sales tax at the point of purchase. The retailer calculates it based on the address where the item is being delivered or picked up, not where you live or where the store is located.
Key Takeaways
- Michigan's base sales tax is 6 percent on most goods, with local additions bringing the total to between 6 and 8 percent depending on your county or city.
- Food bought at grocery stores is not taxed, but prepared food, candy, and soft drinks are taxed at the full rate.
- Clothing and shoes under $100 per item are exempt from sales tax in Michigan.
- Services like haircuts, repairs, and medical care are generally not subject to sales tax.
- The tax rate that applies is determined by the delivery or pickup location, not by where you or the store are based.
What Is and Isn't Taxed in Michigan
Not everything you buy is subject to Michigan sales tax. Groceries — unprepared food like milk, bread, vegetables, and meat — are not taxed. However, prepared food, restaurant meals, and food bought at a deli counter are taxed at the full rate.
Clothing and shoes are exempt from sales tax in Michigan, but only if each item costs less than $100. A pair of shoes for $85 is not taxed. A winter coat for $120 is taxed. Items over $100 are taxed on the full price, not just the amount above $100.
Certain other items are also exempt: prescription medications, medical devices prescribed by a doctor, and newspapers. Candy, soft drinks, and energy drinks are taxed, even though they are food products.
Services — haircuts, car repairs, plumbing, medical appointments, and labor — are generally not subject to sales tax in Michigan. You pay the service fee without tax added.
Local Tax Additions by County and City
Michigan allows counties and cities to add their own sales tax on top of the 6 percent state rate. These local rates vary widely. Some counties have no local tax at all, keeping the total at 6 percent. Others add up to 2 percent, bringing the total to 8 percent.
The local tax that applies depends on where the purchase is delivered or picked up. If you buy something online and have it shipped to an address in a high-tax county, you pay that county's rate. If you pick up an order at a store in a different county, you pay the rate for that location.
To find your local rate, search online for your city or county name plus "sales tax rate," or ask a retailer in your area. Most receipts also show the breakdown of state and local tax.
When You Don't Pay Sales Tax
You do not pay sales tax on items that are resold. If you buy goods to resell in your business, you can provide a resale certificate to the seller and avoid paying tax. The tax is paid later when the customer buys the item from you.
Items purchased for business use may also be exempt in some cases. A manufacturer buying raw materials or equipment may not pay sales tax, depending on how the item is used. This requires documentation and varies by situation.
Certain organizations, including some nonprofits and government agencies, may be exempt from sales tax on purchases. Exemption requires a certificate or letter from the state.
How Sales Tax Is Collected and Reported
The retailer collects sales tax from you at the time of purchase and is responsible for sending it to Michigan's Department of Treasury. This happens regardless of whether you are buying in person, online, or by phone.
Online retailers must collect Michigan sales tax on orders shipped to Michigan addresses. This applies even if the retailer is based outside Michigan. The law changed in 2018 to require this, so most major online sellers now collect the tax automatically.
Small sellers and marketplace platforms have different rules. If you sell items on a platform like eBay or Facebook Marketplace, the platform may or may not collect tax depending on the sale amount and your location. Check with the platform for details.
Special Cases and Exemptions
Michigan offers a clothing exemption that is unusual compared to other states. Items of clothing and footwear under $100 are not taxed. This includes coats, shirts, pants, hats, gloves, and shoes. The exemption applies to each individual item, not to your total purchase.
Certain items that might seem like clothing are taxed anyway. Accessories like belts, scarves, and jewelry are taxed even if they cost less than $100. Protective equipment like safety glasses or work boots may be taxed depending on how they are classified.
Motor vehicles, gasoline, and cigarettes have their own tax systems separate from sales tax. These are taxed through excise taxes or fuel taxes rather than the standard sales tax rate.
Frequently Asked Questions
Do I pay sales tax on online purchases from out-of-state sellers?
Yes, if the item is shipped to a Michigan address, Michigan sales tax applies. Most major online retailers collect this automatically at checkout. Smaller sellers may not, in which case you are technically responsible for reporting and paying the tax yourself, though this is rarely enforced for individual purchases.
Is there sales tax on used items or secondhand goods?
Sales tax applies to used goods sold by a business, including used cars sold by a dealer. Items sold between individuals (private sales) are generally not taxed. Used clothing sold by a thrift store or secondhand shop is taxed like new clothing — exempt if under $100 per item.
What about sales tax on subscriptions and digital products?
Digital products like e-books, software, and streaming subscriptions are generally not subject to Michigan sales tax. However, this area is still evolving, and some digital services may be taxed depending on how they are classified. Check your receipt or the seller's website for details.
Can I get a refund of sales tax I already paid?
No. Sales tax is a final tax on the purchase. If you return an item and receive a refund, the sales tax is refunded as part of that refund. You cannot claim a refund of sales tax you paid on items you keep.
How do I find out what the exact sales tax rate is in my area?
Search online for your city or county name plus "Michigan sales tax rate." You can also call your local city or county assessor's office, or check your most recent receipt from a local purchase — the rate is usually printed there.