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 state. However, some counties and cities add their own local sales tax on top of the state rate, so 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 merchant is responsible for collecting it from you and sending it to the state. You will see the tax added to your receipt.

Key Takeaways

  • Michigan's base sales tax rate is 6 percent, applied to most goods and services statewide.
  • Many counties and cities add local sales tax on top of the state rate, raising your total to between 6 and 7 percent depending on location.
  • Food purchased at grocery stores is not taxed, but prepared food and restaurant meals are taxed at the full rate.
  • Prescription medications are exempt from sales tax, but over-the-counter drugs and vitamins are taxed.
  • You can find your exact local rate by entering your address on the Michigan Department of Treasury website or asking a retailer.

How local sales tax adds to the state rate

While the state rate is 6 percent, individual counties and cities in Michigan can impose additional local sales tax. This means your actual tax rate depends on your location. Some areas have no local addition and stay at 6 percent, while others add 0.5 to 1 percent or more on top of the state rate.

For example, Wayne County (which includes Detroit) has a 6 percent state rate plus a 0.2 percent county tax, bringing the total to 6.2 percent in most areas. Macomb County adds 1 percent locally, making the total 7 percent. Smaller cities may have their own additions as well.

The easiest way to find your exact rate is to enter your address on the Michigan Department of Treasury sales tax lookup tool at michigan.gov/taxes. You can also call your city or county assessor's office, or ask a cashier at any local store.

What is and is not taxed in Michigan

Not everything you buy is subject to sales tax in Michigan. Unprepared food — groceries like bread, milk, vegetables, and raw meat — is exempt from sales tax. This applies whether you shop at a supermarket or a farmers market.

However, prepared food is taxed. This includes restaurant meals, deli items, hot food from a grocery store, and food from a vending machine. The distinction is whether the food is ready to eat or requires preparation at home.

Prescription medications are also exempt from sales tax in Michigan. Over-the-counter drugs, vitamins, and supplements are taxed at the full rate. Clothing and shoes are taxed, as are most household goods, electronics, and services like haircuts or car repairs.

Sales tax on online purchases

Online retailers are required to collect Michigan sales tax on purchases shipped to Michigan addresses. This applies whether the retailer is based in Michigan or elsewhere. The tax rate that applies is the rate for the address where the item is being delivered.

If you order something online and it is shipped to your Michigan home, the retailer should add the appropriate sales tax to your order. If tax was not charged, you may owe it when you file your state income tax return, though most individual purchases below a certain threshold are not pursued by the state.

When you might not pay sales tax

Certain purchases and certain buyers are exempt from Michigan sales tax. Nonprofit organizations, schools, and government agencies can often purchase items without paying sales tax if they provide a resale certificate or tax exemption form.

If you are buying items for resale — for example, you are a retailer purchasing inventory — you do not pay sales tax at the time of purchase. Instead, you collect tax from your customers when you sell the items. You will need a resale certificate from the Michigan Department of Treasury to make these purchases tax-free.

How to find your exact local rate

Your total sales tax rate depends on your specific address, not just your city or county. Some areas within a county may have different rates if they are in different tax districts. The most reliable way to find your exact rate is to use the Michigan Department of Treasury's online lookup tool.

Go to michigan.gov/taxes and use the sales tax rate search. Enter your street address, city, and ZIP code. The tool will show you the state rate, any local additions, and your total combined rate. You can also contact your city assessor's office directly, or ask a local business what rate they charge.

Frequently Asked Questions

Is clothing taxed in Michigan?

Yes, clothing and shoes are subject to the full sales tax rate in Michigan. There is no special exemption for apparel like some states have. The tax applies to new clothing at retail stores, online retailers, and secondhand shops.

Do I have to pay sales tax on groceries?

No, unprepared food from grocery stores — bread, produce, meat, dairy, and pantry items — is not taxed. However, prepared foods like deli items, hot food, and restaurant meals are taxed at the full rate.

What is the highest sales tax rate in Michigan?

The highest combined rate varies by location. Some areas reach 7 percent or slightly higher when local additions are included. You can find your exact rate by entering your address on the Michigan Department of Treasury website.

Do I pay sales tax when I buy something online from out of state?

If the item is shipped to a Michigan address, Michigan sales tax applies. The retailer is required to collect it, regardless of where the company is based. The tax rate is determined by your delivery address.

Are prescription drugs taxed in Michigan?

No, prescription medications are exempt from sales tax. Over-the-counter medications, vitamins, and supplements are taxed at the full rate. You will need a valid prescription for the exemption to explore.