Michigan's statewide sales tax is 6 percent

Michigan charges a 6 percent sales tax on most retail purchases. This is the base rate that applies across the entire state. However, some counties and cities add their own local sales tax on top of the state rate, which means your total tax can be higher depending on where you shop.

The 6 percent state rate has been in place since 2007. It applies to tangible goods — things you can touch and take home — but not to services. A haircut, a plumbing repair, or a car wash is not taxed. A shirt, a phone, or a gallon of paint is taxed.

Key Takeaways

  • Michigan's state sales tax is 6 percent, but your total tax rate depends on your county and city because many add local taxes on top.
  • Food bought at a grocery store is not taxed in Michigan, but prepared food and restaurant meals are taxed at the full rate.
  • Some items like prescription medications and medical equipment are exempt from sales tax.
  • You can find your exact local rate by entering your address on the Michigan Department of Treasury website or asking a retailer.

How local taxes change your total rate

Many Michigan counties and cities layer their own sales tax on top of the state's 6 percent. These local rates vary widely. Some areas add 1 percent, others add 2 percent or more. Your total sales tax can range from 6 percent in areas with no local tax to 8 percent or higher in places with multiple local taxes stacked together.

The local tax is collected by the retailer at the same time as the state tax. You see one combined number on your receipt, but that number includes both the state portion and the local portion. The retailer sends the local portion to the city or county, and the state portion to the Michigan Department of Treasury.

To find out your exact rate, you can search by address on the Michigan Department of Treasury's sales tax lookup tool, or you can simply ask a cashier what the total rate is in that location.

What is and is not taxed in Michigan

Groceries are not taxed. Food you buy at a supermarket to cook at home — produce, meat, dairy, bread, canned goods — is exempt from sales tax. This applies whether you shop at a large chain or a small market.

Restaurant meals and prepared food are taxed. If you buy a sandwich from a deli counter, a pizza, or a meal at a restaurant, you pay the full sales tax rate. The difference is that the food is prepared for immediate consumption, not for you to cook.

Prescription medications are not taxed. Drugs dispensed by a pharmacist with a prescription are exempt. Over-the-counter medications like aspirin or cold medicine are taxed.

Medical equipment and devices are often exempt. Items like wheelchairs, hearing aids, and diabetic supplies may not be taxed, depending on the specific item. If you use medical equipment regularly, ask the retailer or check with the Michigan Department of Treasury about whether a particular item is exempt.

Clothing is taxed. Unlike some states, Michigan taxes clothing and shoes at the full rate.

Sales tax on online and out-of-state purchases

If you order something online from a retailer outside Michigan, Michigan sales tax may still apply. Federal law now requires most online retailers to collect sales tax based on where the item is being shipped, not where the retailer is located. This means if you live in Michigan and order from an out-of-state company, they should charge you Michigan's rate for your location.

Some smaller online retailers are not required to collect sales tax. If they do not, you may be responsible for reporting and paying the tax yourself on your Michigan income tax return, though this is rarely enforced for individual purchases.

Sales tax on vehicles and major purchases

When you buy a car in Michigan, sales tax is calculated on the purchase price. The rate depends on where the dealership is located. You pay the tax at the time of purchase, and the dealership handles the paperwork with the Michigan Secretary of State.

If you buy a used car from a private seller, you still owe sales tax when you register it with the Secretary of State. The tax is based on the sale price you paid, and you pay it as part of the registration process.

Large purchases like furniture, appliances, and electronics are all taxed at your local rate. There is no threshold or exemption for expensive items — a $5,000 television is taxed the same way as a $50 item.

Frequently Asked Questions

What is the sales tax in Detroit?

Detroit is in Wayne County. The combined state and local sales tax rate in Detroit is 6 percent. Wayne County does not add a local sales tax on top of the state rate, so you pay only the 6 percent state tax.

Do I pay sales tax on used items?

Sales tax applies to used goods sold by retailers, including used cars, used furniture, and used electronics. If you buy a used item from a private person (not a business), sales tax typically does not apply, except for vehicles, which are taxed when registered.

Is there sales tax on services in Michigan?

No. Services like haircuts, plumbing, electrical work, car repairs, and consulting are not subject to sales tax in Michigan. You pay only the service fee itself. The exemption applies even if the service includes some materials.

Can I get a sales tax refund if I overpaid?

If a retailer charged you the wrong rate or taxed an item that should be exempt, contact the retailer first. They can issue a refund or credit. If the retailer will not help, you can file a complaint with the Michigan Department of Treasury, though individual refunds are handled case by case.

What counties in Michigan have the highest sales tax?

Several counties add local sales tax on top of the 6 percent state rate, pushing totals to 7 or 8 percent. The exact rate varies by county and city. Use the Michigan Department of Treasury's lookup tool or ask a local retailer to find the rate in your specific area.