Michigan charges a 6% sales tax on most goods, with some exceptions for food and medicine

Michigan's sales tax rate is 6% statewide. This is a tax added to the price of items you buy at checkout. The tax applies to tangible goods — things you can touch and take home — but not to services. So you pay sales tax on a shirt or a gallon of paint, but not on a haircut or car repair labor.

Some items are exempt from sales tax entirely. Unprepared food — groceries like milk, bread, and vegetables — is not taxed. Prescription medications are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. Clothing and footwear under $100 per item are exempt from sales tax in Michigan, though items over $100 are taxed on the full amount.

The 6% rate is the base rate set by the state. Some counties and cities add their own local sales tax on top of this, so your total rate at checkout may be higher. For example, Wayne County adds 0.2%, and Washtenaw County adds 0.5%. The total you pay depends on where you make the purchase.

Key Takeaways

  • Michigan's state sales tax is 6% on most goods, but some counties and cities add local taxes that raise the total rate.
  • Unprepared food, prescription medications, and clothing under $100 per item are exempt from sales tax.
  • Sales tax applies only to tangible goods you can take home, not to services like haircuts or repairs.
  • The tax is calculated and collected at the point of sale, so you see the total price at checkout.
  • Online purchases from out-of-state sellers may or may not be taxed depending on the seller's location and Michigan's tax laws.

What items are taxed and what are not

The line between taxed and tax-free items is not always obvious. Groceries are generally exempt, but prepared food is taxed. A sandwich from a deli counter is taxed; a loaf of bread from the shelf is not. Hot food is taxed; cold food is not. Candy and soda are taxed because they are considered prepared foods, not groceries.

Clothing and footwear under $100 per item are exempt. This means a $99 shirt is tax-free, but a $101 shirt is taxed on the full $101. If you buy multiple items, each item is evaluated separately. A pair of $80 shoes and a $90 jacket are both exempt, but a $150 coat is taxed.

Medical devices and equipment vary. Prescription medications are always exempt. Diabetic testing supplies, hearing aids, and prosthetic devices are exempt. Over-the-counter items like bandages, pain relievers, and vitamins are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check the receipt — it will show whether tax was charged.

How local taxes add to the state rate

Michigan allows counties and some cities to add their own sales tax on top of the 6% state rate. This local tax goes to fund county and local services. The total rate you pay is the state rate plus any local additions.

Local rates vary widely across the state. Some counties add nothing; others add up to 1% or more. Kent County adds 0.5%, Genesee County adds 0.5%, and Macomb County adds 0.5%. Wayne County adds 0.2%. The rate depends on where you live and where you shop. If you cross county lines to make a purchase, you pay the rate in the county where the sale happens, not where you live.

You can find your local rate by searching "Michigan sales tax rate" plus your city or county name, or by asking a local business. The total rate is always shown on your receipt.

Sales tax on online and mail orders

Online purchases are subject to Michigan sales tax if the seller has a physical presence in Michigan — a store, warehouse, or office. Large online retailers like Amazon collect Michigan sales tax on orders shipped to Michigan addresses. Smaller sellers or out-of-state-only retailers may not collect the tax at checkout.

If you buy from an out-of-state seller who does not collect Michigan sales tax, you may owe use tax on that purchase. Use tax is a tax on goods you bring into Michigan or have delivered to you. It is the same rate as sales tax, but you are responsible for paying it yourself, usually when you file your state income tax return. In practice, most individual buyers do not report use tax, but it is technically owed.

The rules around online sales tax change frequently as states and the federal government update laws. If you are buying from a seller outside Michigan and are unsure whether tax will be charged, check their website or contact them before checkout.

Who collects the tax and where it goes

The business selling you the item collects the sales tax at the point of sale. The cashier or checkout system calculates the tax based on the item's price and the local rate, adds it to your total, and you pay it. The business then sends this tax money to the Michigan Department of Treasury on a regular schedule — usually monthly or quarterly, depending on the business size.

The state keeps the 6% state portion and distributes the local portion to the county or city that added it. This money funds schools, roads, public safety, and other local services. You do not send the tax to the state yourself; the business handles it.

Frequently Asked Questions

Is clothing always tax-free in Michigan?

Clothing and footwear are tax-free only if each item costs less than $100. A $99 shirt is exempt; a $150 coat is taxed on the full amount. Accessories like hats, belts, and gloves under $100 are also exempt. Each item is evaluated separately.

Do I pay sales tax on groceries?

Unprepared groceries like milk, bread, vegetables, and meat are not taxed. Prepared foods — deli sandwiches, hot pizza, or items from a salad bar — are taxed. Candy and soda are taxed because they are classified as prepared foods, not groceries.

What is the total sales tax rate in my area?

The state rate is 6%, and your local rate depends on your county or city. Search "Michigan sales tax rate" plus your location, or check your receipt from a recent purchase. The total rate will be listed there.

Do I owe tax on items I buy online from out-of-state sellers?

If the seller collects Michigan tax, you pay it at checkout. If they do not, you technically owe use tax on the purchase, though most individuals do not report it. Large retailers like Amazon collect the tax automatically for Michigan orders.

Can I get a refund of sales tax I already paid?

No. Sales tax is final once you pay it. You cannot get a refund unless you return the item and receive a refund of the full purchase price, including tax. The business then returns the tax to the state.