Michigan charges a 6 percent sales tax on most goods, with some exceptions for food and medicine

Michigan's sales tax rate is 6 percent statewide. This tax applies to the purchase price of tangible goods — items you can touch and take home. The tax is collected by the seller at the point of sale and sent to the Michigan Department of Treasury.

Not everything you buy is taxed at the full 6 percent rate. Some items are exempt entirely, and others are taxed at different rates depending on what they are and how they're used. Understanding which purchases are taxed and which are not can help you anticipate the final cost of what you're buying.

Key Takeaways

  • Michigan's base sales tax is 6 percent on most tangible goods, collected by the seller when you make a purchase.
  • Groceries, prescription medications, and certain medical devices are exempt from sales tax in Michigan.
  • Some counties and cities add local sales taxes on top of the state rate, raising the total to between 6 and 6.5 percent depending on location.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in Michigan.
  • The tax applies to the full purchase price before any discounts or coupons are applied, though some coupons may reduce the taxable amount.

What is and isn't taxed in Michigan

Groceries and food intended for home consumption are exempt from sales tax in Michigan. This includes bread, milk, vegetables, meat, and other items you buy to cook or eat at home. However, prepared foods — items sold hot or ready to eat — are taxed. A sandwich from a deli counter or a rotisserie chicken are both subject to the 6 percent tax.

Prescription medications and certain medical devices are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs filled at a pharmacy are not. Some medical equipment, such as diabetic testing supplies and mobility aids, may be exempt depending on the specific item.

Services are generally not taxed in Michigan. A haircut, car repair, dental work, or plumbing service does not have sales tax added. However, if you buy a product as part of that service — such as a bottle of shampoo at a salon — the product itself may be taxed.

Local sales taxes on top of the state rate

While Michigan's state sales tax is 6 percent, some counties and cities add their own local sales taxes. These local taxes range from 0 to 0.5 percent, meaning the total sales tax you pay can be between 6 and 6.5 percent depending on where you shop.

The combined rate varies by location. For example, a purchase in one county might be taxed at 6 percent, while the same purchase in a neighbouring county could be 6.25 percent. When you make a purchase, the seller charges you the rate that applies in that specific location. You can find the exact rate for your area by entering your address on the Michigan Department of Treasury website.

How sales tax is calculated on your purchase

Sales tax in Michigan is calculated on the full retail price of the item before any discounts are applied. If an item costs $100 and you have a $10 coupon, the sales tax is still calculated on $100, not $90. However, some manufacturer coupons or store coupons may reduce the taxable amount — this depends on how the coupon is structured and the store's policy.

When you see a price tag in a Michigan store, that price does not include sales tax. The tax is added at checkout. If an item is marked $50, you will pay $50 plus 6 percent (or your local rate), for a total of $53 (or more, depending on local taxes). This is different from some other states where the displayed price includes tax.

Sales tax on online and out-of-state purchases

If you buy something online from a Michigan seller, Michigan sales tax applies. If you buy from an out-of-state seller, the rules depend on whether that seller has a physical presence in Michigan or meets certain sales thresholds. Many large online retailers now collect Michigan sales tax on purchases shipped to Michigan addresses, even if the company is based elsewhere.

If you buy something in another state and bring it back to Michigan, you do not owe Michigan sales tax on that purchase — the tax was already paid in the state where you bought it. However, if you order something from out of state and it is shipped to Michigan, and the seller did not collect sales tax, Michigan law technically requires you to pay "use tax" on that purchase. Use tax is the same rate as sales tax but is rarely enforced for individual purchases.

Who collects and where the money goes

The seller — whether a store, online retailer, or service provider — is responsible for collecting sales tax from you and sending it to the Michigan Department of Treasury. The seller acts as a collector on behalf of the state. Retailers must register for a sales tax permit before they can legally sell taxable items in Michigan.

The revenue from Michigan's 6 percent sales tax is split between the state general fund and local governments. The local portion helps fund schools, roads, and other municipal services in the county or city where the purchase was made. This is why the local add-on varies by location — different communities have different funding needs.

Frequently Asked Questions

Do I pay sales tax on clothing in Michigan?

Yes. Michigan taxes clothing and shoes at the full 6 percent rate (plus any local tax). There is no clothing exemption in Michigan, unlike some other states that exempt certain apparel items.

Is gasoline subject to sales tax in Michigan?

No. Gasoline is not subject to Michigan sales tax. However, Michigan does charge a fuel excise tax, which is a different tax collected at the pump. The excise tax is included in the price you see displayed.

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

If you notice the tax charged is incorrect, you can ask the cashier or store manager to correct it. Small errors sometimes occur, especially in stores that manually calculate tax. If the error is significant or happens repeatedly, you can contact the Michigan Department of Treasury to report it.

Do I owe sales tax on items I buy for my business?

Generally, yes — you pay sales tax when you buy items for business use, just as you would for personal use. However, some businesses can obtain a resale certificate, which allows them to buy items without paying sales tax if those items will be resold. This applies only to goods that will be sold to customers, not items used in the business itself.