Michigan's current sales tax rate

Michigan charges a 6% sales tax on most goods and services. This is the state rate that applies statewide. Some cities and counties add their own local tax on top of the state rate, which means your total tax can be higher depending on where you shop.

The 6% state rate has been in place since 2007. When you see a price tag in a Michigan store, the tax shown at checkout will be at least 6%, but often higher if your location has added a local tax. The combined rate you actually pay depends on your city or township.

Key Takeaways

  • Michigan's state sales tax is 6% on most purchases, and this rate applies everywhere in the state.
  • Many cities and counties add their own local sales tax on top of the state rate, raising your total to between 6% and 6.5% in most places.
  • Food bought at a grocery store is not taxed, but prepared food and restaurant meals are taxed at the full rate.
  • Prescription medications are not taxed, but over-the-counter drugs and vitamins are taxed like other goods.

Local taxes that add to the state rate

About 150 cities and villages in Michigan have added a local sales tax on top of the 6% state rate. These local taxes range from 0.25% to 0.5%, which means your total sales tax bill can be anywhere from 6% to 6.5% depending on your city or township. Some areas have no local tax and charge only the state 6%.

The local tax is collected by the same retailer at the same time as the state tax. You will see the combined total on your receipt. To find out your exact local rate, you can contact your city or village clerk's office, or check the Michigan Department of Treasury website, which lists all local tax rates by location. Knowing your exact rate matters when you are budgeting for large purchases.

What is and is not taxed

Food purchased at a grocery store or supermarket is not taxed in Michigan. This includes bread, milk, vegetables, meat, frozen foods, and other items you buy to cook at home. However, prepared food — anything ready to eat — is taxed at the full rate. This means restaurant meals, deli sandwiches, hot pizza, and food from a food truck are all taxed.

Prescription medications are not taxed. Over-the-counter drugs like pain relievers, cold medicine, and vitamins are taxed like regular goods. Clothing and shoes are taxed. Gasoline is taxed, but the tax is included in the pump price you see. Services like haircuts, car repairs, and plumbing are generally not taxed, though some specific services may be.

How the tax appears on your receipt

When you check out at a store, the sales tax is added to your subtotal. Your receipt will show the subtotal, the tax amount, and the total you owe. If you are shopping in a location with a local tax, the receipt may show the state tax and local tax separately, or it may show them combined as one line.

Online purchases from retailers based in Michigan are taxed at the rate of the location where the item is being shipped. If you order online from a retailer outside Michigan and have it shipped to your Michigan address, you may or may not be charged Michigan sales tax depending on the retailer's policies and whether they have a physical presence in the state. Large retailers typically charge tax on Michigan deliveries.

Why the rate matters for your budget

The 6% state rate means that for every $100 you spend on taxable items, you pay $6 in tax. With a local tax added, that number rises. If you live in an area with a 0.5% local tax, you pay $6.50 in tax on that same $100 purchase. Over time, this adds up — especially on large purchases like appliances or furniture.

Understanding what is and is not taxed helps you budget more accurately. Knowing that groceries are not taxed but restaurant meals are can help you plan your spending. If you are buying something expensive, checking whether it is taxed before you go to the store prevents surprises at checkout. This is particularly useful when comparing the cost of eating at home versus dining out.

Frequently Asked Questions

Does Michigan charge sales tax on clothing?

Yes, clothing and shoes are taxed at the full 6% state rate, plus any local tax in your area. There is no clothing exemption in Michigan, unlike some other states.

Are groceries taxed in Michigan?

No. Food you buy at a grocery store to cook at home is not taxed. This includes produce, meat, dairy, frozen foods, and pantry items. Prepared food and restaurant meals are taxed.

What is the sales tax on gasoline?

Michigan charges excise tax on gasoline, but it is included in the price you see at the pump — you do not see it listed separately. The total tax on gasoline is higher than the 6% sales tax rate.

Do I pay sales tax on services like haircuts or car repairs?

Most services are not subject to sales tax in Michigan. Haircuts, car repairs, plumbing, and similar services are generally not taxed. However, some specific services may be taxed, so it is worth asking the service provider.

How do I find out my exact local sales tax rate?

Contact your city or village clerk's office, or visit the Michigan Department of Treasury website, which has a searchable database of all local tax rates by location. You can also ask a cashier at a local store what the combined rate is in your area.