Michigan Sales Tax Exemptions
What is Exempt From Sales Tax in Michigan?
The state of Michigan levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. There are no local sales taxes in the state of Michigan.
Use tax is also collected on the consumption, use or storage of goods in Michigan if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Michigan on or before February 20th.
Need more information?
For more information on Michigan sales tax exemptions please visit the sites below.
Michigan Sales & Use Tax Information
Michigan Sales Tax Exemption Research Bulletins
Sales Tax Compliance FAQs
Sales tax compliance can be intimidating, but it doesn't have to be!
Michigan Sales Tax Tips
Here are some useful Michigan sales tax tips our Agile team members felt could be helpful:
Use Michigan Online Treasury Online (MTO)
Companies in Michigan are encouraged to use Michigan Treasury Online (MTO) for registering, filing, and paying sales and use taxes, with benefits including error prevention, automatic use of correct forms, faster payment turnarounds, and mandatory use for specific businesses designated by the state.
Responsibilities & Filing Frequency
Understanding and fulfilling your responsibilities is crucial for Michigan sales tax compliance, encompassing tasks like maintaining registration information, record-keeping, timely filing even with a $0 payment, and being aware of the correct filing frequency.
Pay Early
Make the most of your dollars by paying your taxes before the 12th of the month. Doing so earns taxpayers an early payer discount and saves them a little bit of money. Those who consistently pay by the 20th, called Timely Payers, also receive a tax discount, but it’s smaller than the early payer discount. The maximum discount one can receive is $20,000.
Penalty Waivers
if you miss a return or payment, you can request a penalty waiver in writing, typically granted for reasons such as death, serious illness, fire, theft, criminal acts against the taxpayer, or misapplications of payment by the Michigan treasury; additionally, you can request a one-time penalty waiver for any reason, a tip that often proves effective in other states as well.
How to Calculate Michigan Sales Tax?
Utilize the following sales tax formula to obtain the necessary sales tax:
Sales tax = total amount of sale x sales tax rate
If you are looking for more information, check out our Sales Tax Consulting page or talk to one of our Sales Tax Experts:
Find the sales tax exemptions for your state
Select any state in the map below to view all relevant sales and use tax information available for that state.