Michigan's sales tax is 6 percent on most goods

Michigan charges a 6 percent sales tax on retail purchases of tangible goods. This is the statewide rate that applies across the state. When you buy something at a store, that 6 percent is added to the price at checkout.

Some cities and counties in Michigan add their own local tax on top of the state rate. These local additions range from 0 to 2 percent, depending on where you live. Your total sales tax bill is the state rate plus whatever local rate applies in your area.

The combined rate matters because it changes what you actually pay. If you live in a city with a 1 percent local tax, your total is 7 percent. If your area has a 2 percent local tax, you pay 8 percent total. Knowing your local rate helps you understand what to expect at the register.

Key Takeaways

  • Michigan's statewide sales tax is 6 percent on most goods, and local taxes add 0 to 2 percent on top of that depending on your city or county.
  • Food bought at a grocery store is not taxed, but prepared food and restaurant meals are subject to the full sales tax rate.
  • Prescription medications are not taxed, but over-the-counter drugs and vitamins are taxed like other goods.
  • You can find your exact local rate by searching your city or county name with "sales tax" or by asking a cashier.

What is and is not taxed in Michigan

Not everything you buy in Michigan is subject to sales tax. Groceries—unprepared food you buy at a supermarket to cook at home—are not taxed. This includes bread, milk, vegetables, meat, and frozen dinners you prepare yourself.

Restaurant meals and prepared food are taxed. If you buy a sandwich from a deli counter, a meal at a restaurant, or food from a food truck, you pay sales tax on it. The difference is whether the food is ready to eat when you buy it.

Prescription medications are not taxed in Michigan. Over-the-counter drugs, vitamins, and supplements are taxed like other goods. Clothing and shoes are taxed. Services like haircuts, car repairs, and plumbing are generally not taxed, though some specific services may be.

How to find your local sales tax rate

Your exact sales tax rate depends on your city or county. The easiest way to find it is to search online for your city name and "sales tax rate." Most Michigan cities and counties publish this information on their government websites.

You can also call your city or county assessor's office and ask directly. They can tell you the exact rate that applies to your address. Another quick way is to ask a cashier at a local store—they deal with the rate every day and can tell you what it is.

If you are shopping online and the seller is based in Michigan, they should charge you the sales tax for your delivery address. Out-of-state sellers have different rules and may or may not charge Michigan tax depending on their business structure.

Why sales tax rates vary by location

Michigan allows cities and counties to add their own local sales tax on top of the state rate. This local tax goes to fund city and county services like roads, schools, and public safety. Because each city and county decides whether to add a local tax and how much, rates vary across the state.

Some areas have no local tax and charge only the 6 percent state rate. Others add 1 or 2 percent for local services. A few areas have rates between those amounts. This is why two stores in different Michigan cities can charge different total sales tax on the same item.

Sales tax on online and mail orders

If you order something online from a Michigan-based business and it ships to your Michigan address, the seller should charge you Michigan sales tax. The rate applied is usually the rate for your delivery address, not the seller's location.

Out-of-state online sellers do not always charge Michigan sales tax, depending on whether they have a physical presence in Michigan or meet certain sales thresholds. The rules for this are complex and change. If you are unsure whether you should have been charged tax on an online purchase, contact the seller directly.

What happens if you do not pay sales tax

In most cases, the store collects sales tax from you at the register, so you do not have to worry about it separately. The store then sends that tax to the Michigan Department of Treasury.

If you buy something and sales tax is not charged when it should have been, you are not personally responsible for tracking it down or paying it later. The responsibility to collect and send sales tax falls on the business, not the customer. If a store fails to charge tax, that is a matter between the store and the state.

Frequently Asked Questions

Do I pay Michigan sales tax on used items?

Sales tax on used goods depends on where you buy them. Used items sold by a business are generally taxed. Used items sold between individuals are typically not taxed. If you buy a used car from a dealer, tax applies. If you buy one from a private person, it usually does not.

Is there sales tax on gasoline in Michigan?

Gasoline is not subject to Michigan sales tax. Instead, Michigan charges a fuel excise tax that is built into the price you see at the pump. This tax goes to road and transportation funding.

What if I buy something in one Michigan city and use it in another?

You pay sales tax based on where you buy the item, not where you use it. If you purchase something in a city with a 7 percent rate and take it to a city with an 8 percent rate, you paid the 7 percent rate at purchase. You do not owe additional tax.

Are services like haircuts or car repairs taxed in Michigan?

Most services are not subject to Michigan sales tax. Haircuts, car repairs, plumbing, and similar services are generally not taxed. However, if you buy a product as part of the service—like a haircut plus a bottle of shampoo—the product portion may be taxed.