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 taxes on top of the state rate, which means your total tax can be higher depending on where you shop.
The state collects this tax at the point of sale — when you buy something at a store, online retailer, or restaurant. The seller is responsible for collecting it from you and sending it to the Michigan Department of Treasury.
Key Takeaways
- Michigan's base sales tax rate is 6 percent, but your actual rate depends on your county and city because local taxes stack on top of the state rate.
- Food you buy at a grocery store is not taxed, but prepared food at restaurants and hot food at delis is taxed at the full rate.
- Clothing and shoes under $100 are exempt from sales tax, but items over that threshold are taxed on the full purchase price.
- Some counties charge up to 2 percent additional sales tax, bringing the total to 8 percent or higher in certain areas.
How local taxes change your total rate
While the state rate is 6 percent everywhere, counties and cities can add their own sales taxes. These local rates vary by location and range from 0 to 2 percent. This means your actual sales tax rate depends on the specific address where you make the purchase.
For example, if you shop in a county that adds 1 percent local tax, your total rate is 7 percent. If your county adds 2 percent, your total is 8 percent. Some areas have no additional local tax, so you pay only the 6 percent state rate. To find your exact rate, you can search by zip code on the Michigan Department of Treasury website or ask a cashier at checkout.
What is and is not taxed
Not everything you buy is subject to sales tax in Michigan. Unprepared food — items you buy at a grocery store to cook at home — is not taxed. This includes raw meat, vegetables, bread, milk, and canned goods. However, prepared food is taxed at the full rate. If you buy a hot rotisserie chicken, a sandwich from a deli counter, or a meal at a restaurant, you pay sales tax.
Clothing and shoes under $100 are exempt from sales tax in Michigan. If you buy a shirt for $50, you pay no tax. If you buy a pair of shoes for $120, the entire $120 is subject to tax — not just the amount over $100. Once an item reaches the $100 threshold, the full price is taxed.
Other items exempt from sales tax include prescription medications, medical equipment, and newspapers. Gasoline is taxed, but the tax is included in the pump price rather than added at checkout.
Online purchases and out-of-state sellers
Online retailers are required to collect Michigan sales tax on purchases shipped to Michigan addresses. This applies whether the seller is based in Michigan or elsewhere. If you buy something online and have it delivered to your home in Michigan, you should see sales tax added to your order.
Some very small sellers may not collect sales tax, but this is rare for major retailers. If you notice that sales tax was not charged on an online purchase delivered to Michigan, the seller may be below the threshold that triggers collection requirements. You are not responsible for paying the tax yourself in this situation — the obligation falls on the seller.
Sales tax on vehicles and large purchases
When you buy a car in Michigan, sales tax applies to the purchase price. The rate is the same 6 percent state rate plus any local taxes in your county. You typically pay this tax when you register the vehicle with the Secretary of State, not at the dealership. The dealership will tell you the amount owed.
If you trade in a vehicle, the sales tax applies only to the difference between the new car's price and your trade-in value, not the full purchase price. For example, if you buy a car for $20,000 and trade in a vehicle worth $5,000, you pay sales tax on $15,000.
How to find your exact local rate
Your total sales tax rate depends on where you are located when you make the purchase. The Michigan Department of Treasury maintains a database where you can search by zip code or address to find your exact combined state and local rate. You can also call your local tax assessor's office or ask at any retail location in your area.
If you shop in different counties — for example, if you live near a county border — remember that the rate changes based on where the store is located, not where you live. A purchase made in one county is taxed at that county's rate, even if you live in a different county.
Frequently Asked Questions
Do I pay sales tax on groceries in Michigan?
No, unprepared food from grocery stores is not taxed. This includes produce, meat, dairy, bread, and canned goods. However, prepared foods like rotisserie chicken, deli sandwiches, and hot bar items are taxed at the full rate.
Why is my sales tax different from the person next to me?
You may live or shop in different counties or cities, each with their own local tax rates. Even within the same city, some areas add local taxes while others do not. The rate that applies is based on the location of the store, not your home address.
Is clothing always tax-free in Michigan?
Clothing and shoes under $100 are tax-free, but items $100 or more are fully taxed. The threshold applies to the individual item price, not your total purchase. A $150 jacket is taxed on the full $150.
Do I owe sales tax on items I buy online from out-of-state sellers?
Yes. Online retailers must collect Michigan sales tax on purchases shipped to Michigan addresses, regardless of where the seller is located. The tax should appear on your receipt or invoice.
What if a store doesn't charge me sales tax?
Most retailers collect sales tax correctly. If you notice it was not charged, the store may have made an error, or the seller may be very small and below the threshold for collection. You are not responsible for paying the tax yourself — the obligation is on the seller.