Key takeaways
- Michigan sales tax rate: Michigan charges a flat 6% statewide rate with no local, city or county sales taxes, so the same rate applies everywhere.
- Economic nexus: Remote sellers must register once their Michigan sales in the previous calendar year exceed $100,000 in gross revenue or 200 or more separate transactions. Either threshold is enough.
- Filing & penalties: Monthly and quarterly returns are due on the 20th of the following month, and annual returns by February 28. Late filing or payment costs 5% of the unpaid tax for the first two months, then an extra 5% per month, up to 25%.
Michigan sales tax key facts (2026)
| Item | Michigan |
|---|---|
| Statewide rate | 6% (no local sales tax) |
| Economic nexus threshold | $100,000 or 200 transactions (prior calendar year) |
| Sourcing | Destination-based (single statewide rate) |
Collect and file Michigan sales tax with Taxually: LumaTax monitors your nexus, registers you and files your returns.
Is SaaS taxable?
No (downloaded software taxable).
| Item | Michigan |
|---|---|
| Groceries | Exempt (prepared food taxable) |
| Monthly/quarterly due date | 20th of the following month |
| Annual return due | February 28 |
| Governing agency | Michigan Department of Treasury |
What is the sales tax rate in Michigan?
Michigan has a single statewide sales tax rate of 6% with no local, city, or county sales taxes — so the 6% rate applies everywhere.
Do you have sales tax nexus in Michigan?
Nexus is the connection that obligates your business to collect and remit Michigan sales tax. You can establish it two ways — physically or economically. Either one is enough.
Physical nexus
You have physical nexus if you have a tangible presence in Michigan, such as:
- A physical place of business such as an office, warehouse, or distribution center
- Employees, independent contractors, or representatives working in the state
- Using an in-state distributor to deliver goods
- Working with a Michigan resident to conduct business activities
- Storing inventory in Michigan
Economic nexus
Out-of-state sellers establish economic nexus if, in the previous calendar year, their sales into Michigan exceeded $100,000 in gross revenue or 200 or more separate transactions. Either threshold triggers a duty to register, collect, and remit.
What is taxable in Michigan?
Tangible personal property is generally taxable; services are typically not taxable unless they involve creating or manufacturing a product. Exemptions include certain industrial machinery, agricultural equipment, and some family vehicle transfers.
Is SaaS taxable in Michigan?
Generally no. Michigan does not tax SaaS or remotely accessed software. Tax applies only where there’s a downloadable component — prewritten software delivered to or downloaded by the customer is taxable.
How is food taxed in Michigan?
Most food and food ingredients (groceries) are exempt. Prepared foods — ready-to-eat or sold with utensils provided by the seller — are taxed at 6%.
How to register for a Michigan sales tax permit
Register before collecting. Taxually can register for you, or you can apply online through Michigan Treasury Online (MTO) or by mailing Form 518. Registration is free.
Have ready: personal and business identification, your primary business activities, entity type, and the addresses of all your business locations.
How to collect sales tax in Michigan
With one statewide rate and no local taxes, you simply charge 6% on taxable Michigan sales — the same whether you’re in-state or remote.
Filing and paying Michigan sales tax
The Treasury assigns monthly, quarterly, or annual filing based on your volume. Monthly and quarterly returns are due the 20th of the month following the period; annual returns are due February 28 of the following year (next business day if a deadline falls on a weekend or holiday).
File and pay online through MTO or by mail using Form 5080. Taxually’s software automates the full process.
Penalties for late or non-compliant filing
Failing to file or pay on time triggers these penalties:
- Late filing/payment: 5% of the unpaid tax for the first two months, then an additional 5% per month, up to 25%.
- Interest accrues on unpaid tax at the current rate.
Frequently asked questions
What is the sales tax rate in Michigan in 2026?
A flat 6% statewide, with no local sales taxes.
What is the economic nexus threshold for Michigan?
$100,000 in gross revenue or 200 separate transactions in the previous calendar year.
Is SaaS taxable in Michigan?
Generally no. SaaS and remotely accessed software aren’t taxed; only software with a downloadable component is taxable.
Are groceries taxed in Michigan?
No, groceries are exempt. Prepared food is taxed at 6%.
When are Michigan sales tax returns due?
Monthly and quarterly returns are due the 20th of the following month; annual returns are due February 28.
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