Michigan's sales tax rate and what it covers

Michigan charges a 6% sales tax on most goods you buy in the state. This is the base rate that applies statewide. When you make a purchase at a store, restaurant, or online retailer shipping to Michigan, you pay this 6% on top of the listed price.

Some cities and counties add their own local tax on top of the state rate. These local additions range from 0% to 2.5%, so your total sales tax bill can be anywhere from 6% to 8.5% depending on where you live or shop. The city or county where the sale happens determines which local rate applies, not where you live.

Not everything is taxed at the same rate. Groceries—unprepared food you cook at home—are taxed at only 2% in Michigan, not the full 6%. This includes items like milk, bread, vegetables, and meat from the butcher counter. Prepared foods, restaurant meals, and food you eat on premises are taxed at the full rate.

Key Takeaways

  • Michigan's base sales tax is 6%, but your actual rate depends on your city or county, which can add 0% to 2.5% on top of that.
  • Groceries—unprepared food you buy to cook at home—are taxed at 2%, while restaurant meals and prepared foods are taxed at the full rate.
  • Clothing and shoes under $100 per item are not taxed in Michigan, but items over that threshold are taxed at the full rate.
  • Online purchases from out-of-state sellers are subject to Michigan sales tax if the seller has a physical presence or meets certain sales thresholds in the state.
  • You can find your exact local sales tax rate by entering your address on the Michigan Department of Treasury website.

Clothing and footwear exemptions

Michigan does not tax clothing and shoes under $100 per item. This means if you buy a shirt for $45, a pair of jeans for $60, or shoes for $85, you pay no sales tax on those items. The $100 threshold applies to each individual item, not your total purchase.

Once an item costs $100 or more, the full 6% (plus local tax) applies to the entire price. A $120 winter coat is taxed on all $120. A $150 pair of boots is taxed on the full $150. Accessories like hats, belts, scarves, and gloves are also exempt under $100 per item.

This exemption does not explore to clothing rentals or alterations. If you rent a tuxedo or have pants hemmed, you pay tax on that service.

What is and is not taxed in Michigan

Beyond groceries and clothing, Michigan taxes most tangible goods—things you can touch and take home. This includes electronics, furniture, books, toys, and household items. Services are generally not taxed, though there are exceptions.

Haircuts and salon services are not taxed. Car repairs are not taxed. However, if you buy a haircut and shampoo product at the same time, the product is taxed but the service is not. Rental of tangible property—like renting a car, equipment, or a tool—is taxed. Admission to movies, concerts, and sporting events is taxed.

Prescription medications are not taxed in Michigan. Over-the-counter medications and vitamins are taxed. Medical devices like hearing aids and prosthetics are not taxed if prescribed by a doctor.

How to find your local sales tax rate

Your exact sales tax rate depends on which city and county you are in. The Michigan Department of Treasury maintains a sales tax rate lookup tool on its website. You enter your street address, and it shows you the combined state and local rate for that location.

If you are shopping online or by mail, the rate that applies is the rate where the item ships to, not where you live or where the business is located. If you order something to be delivered to your home in Detroit, Detroit's rate applies. If you pick it up at a store in Ann Arbor, Ann Arbor's rate applies.

Local rates change occasionally when cities or counties adjust their tax ordinances. If you are budgeting or comparing prices, check the current rate for your specific address rather than relying on a rate you saw months ago.

Sales tax on online and out-of-state purchases

Online retailers are required to charge Michigan sales tax on orders shipped to Michigan addresses if they have a physical presence in the state—such as a warehouse, office, or store location. Many large online retailers meet this requirement and already charge Michigan tax at checkout.

Retailers without a Michigan location are required to charge sales tax if they meet certain sales thresholds. Federal law requires remote sellers to charge sales tax if they sold more than $100,000 of goods or services in Michigan in the previous calendar year, or if they completed more than 200 transactions in Michigan in the previous year. Most major retailers meet these thresholds.

If an out-of-state seller does not charge Michigan sales tax, Michigan residents are technically responsible for paying use tax—a tax on goods brought into the state for use. In practice, use tax is rarely enforced for individual purchases, but it is a legal obligation.

Who collects and where the money goes

The retailer or seller collects sales tax from you at the point of sale and sends it to the Michigan Department of Treasury. The state keeps the 6% portion. The local portion—the 0% to 2.5% added by your city or county—goes to that local government.

Sales tax revenue funds state and local services. The state uses its portion for education, infrastructure, and general operations. Local governments use their portion for schools, police, fire departments, roads, and other municipal services.

You do not file sales tax yourself as a consumer. The business handles all the paperwork and payment to the state. Your receipt shows the tax amount charged, which can be useful for record-keeping or if you need to dispute a charge.

Sales tax on vehicles and special items

Cars, trucks, and motorcycles are subject to sales tax in Michigan. When you buy a vehicle from a dealer, the sales tax is calculated on the purchase price and collected at the time of sale. The rate is the same 6% base plus local tax for the county where the sale occurs.

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

Boats and recreational vehicles follow the same rules as cars. Fuel for vehicles is taxed separately—Michigan charges an excise tax on gasoline and diesel, which is different from sales tax and is included in the pump price.

Frequently Asked Questions

What is the difference between sales tax and use tax?

Sales tax is charged when you buy something in Michigan. Use tax is a tax on goods you bring into Michigan from out of state for your own use. If you buy something online from a seller with no Michigan presence and no sales tax is charged, you technically owe use tax. Most individuals do not report use tax, but it is a legal obligation.

Do I pay sales tax on gift cards?

No. When you buy a gift card, there is no sales tax. When the recipient uses the gift card to buy something, sales tax applies to that purchase at the normal rate, just as if they had paid cash.

Are digital products like e-books and software taxed?

E-books, digital music, and software downloads are generally not taxed in Michigan. However, if you buy a physical book or a CD, sales tax applies. The format matters—digital is usually exempt, physical is usually taxed.

What if a store charges me the wrong sales tax amount?

Check your receipt against the rate for your location using the Michigan Department of Treasury lookup tool. If the amount is wrong, contact the store. Most errors are corrected at the register. Keep your receipt in case you need to dispute the charge with your credit card company.

Do I have to pay sales tax if I buy something out of state and bring it home?

If you buy something in another state and bring it to Michigan, you technically owe Michigan use tax on it. However, this is rarely enforced for personal purchases. If you buy a car out of state and register it in Michigan, you will owe sales or use tax when you register it.