Michigan Sales Tax Guide & Nexus Calculator (2026)

Michigan has a 6% state rate with no local sales taxes, making rate calculation straightforward. SaaS and most digital goods are not taxable under current Michigan Treasury guidance. Michigan is an SST member, enabling streamlined multi-state registration.

Quick Reference

Criterion	Detail
State Rate	6%
Economic Nexus Threshold	$100,000 gross sales (rolling 12 months)
Transaction Threshold	None
Digital Goods / SaaS	Not taxable
Typical Filing Frequency	Monthly
SST Member	Yes
Registration Portal	michigan.gov/taxes

Economic Nexus

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Gross Revenue (USD)

$

Total Transactions (not required)

Enter your trailing 12-month revenue to calculate nexus status.

For informational purposes only · Not legal or tax advice · Consult a licensed tax professional · Rules as of 2026

Michigan’s economic nexus threshold is $100,000 in gross sales into Michigan in the current or prior calendar year. Once exceeded, registration and collection are required.

Marketplace-facilitated sales (Amazon, Etsy, eBay) count toward the threshold. Michigan eliminated its 200-transaction alternative threshold before 2025. Only the revenue threshold applies.

Tax Rate and Product Taxability

Michigan’s state rate is 6%. Michigan does not permit local sales taxes — the 6% rate applies uniformly statewide.

This statewide uniformity makes Michigan simple for rate calculation: one rate for all Michigan orders, regardless of customer location.

Product Categories

Taxable: Tangible personal property, most retail goods, prepared food.

Exempt: Prescription drugs, most groceries (food for home preparation is exempt), qualifying agricultural inputs, industrial processing machinery.

Grocery exemption: Michigan exempts most food items intended for home consumption. Prepared food (restaurant meals, candy, carbonated beverages) remains taxable at 6%.

Digital Goods and SaaS

Michigan does not tax SaaS or most digital goods under current Department of Treasury guidance. Michigan’s sales tax applies to tangible personal property, and the Treasury has generally held that digital products lacking a physical medium are not taxable.

Michigan’s digital goods position:

• SaaS — not taxable; the Treasury has held that remote access to software does not constitute a sale of tangible personal property
• Downloaded software — Michigan has been inconsistent on downloaded software; current guidance generally treats electronically delivered prewritten software as not taxable, though older guidance treated it as taxable. Verify current Treasury guidance for your specific delivery model
• Digital content (ebooks, streaming, music downloads) — generally not taxable
• Online subscriptions for digital services — generally not taxable

For SaaS and digital-only businesses, Michigan is generally a non-taxable state — meaningful for sellers in a market covering the Detroit/Ann Arbor metro and beyond.

Caution: Michigan’s digital goods guidance has evolved and could change. Monitor Treasury updates.

Registration

Michigan is an SST member state. Register through the Streamlined Sales Tax Registration System (SSTRS) at streamlinedsalestax.org for multi-state coverage including Michigan.

For Michigan-only registration:

1. Go to the Michigan Department of Treasury: michigan.gov/taxes
2. Access Michigan Treasury Online (MTO): michigan.gov/mto
3. Register for a Sales Tax License
4. Provide EIN and business information
5. You will receive a Michigan Sales Tax License

Registration is free.

Foreign Sellers

Michigan accepts foreign business registrations. A US EIN is required.

Filing Frequency and Deadlines

Annual Tax Liability	Filing Frequency
Less than $750	Annual
$750–$3,600	Quarterly
More than $3,600	Monthly

Monthly due dates: Returns are due by the 20th of the following month.

Returns are filed through Michigan Treasury Online (MTO).

Compliance Notes

No local rates: Michigan’s single statewide rate eliminates complexity.

SaaS sellers likely have no Michigan obligation: If your revenue is purely SaaS, Michigan’s non-taxable position means you likely have no collection obligation. Monitor Treasury guidance for potential expansion.

SST membership: Use the SSTRS for multi-state registration covering Michigan.

Amazon FBA: Amazon operates fulfillment centers in Michigan. FBA inventory creates physical nexus immediately.

Use Tax: Michigan customers buying from unregistered sellers owe use tax. Registering and collecting relieves your customers of this obligation.

Related Guides

• US Sales Tax Overview
• State Sales Tax Index — All 50 States
• Stripe Tax for Digital Goods and SaaS
• Foreign Sellers Guide to US Sales Tax
• US Sales Tax Compliance Checklist