Michigan sales & use tax.
The facts an advisor checks first — rate, nexus threshold, marketplace rules — with links to the controlling authority.
Michigan: rate, nexus & administration.
- State rate
- 6%
- Local rates
- No local sales taxes
- Economic nexus
- $100,000 or 200 transactions · effective October 1, 2018Controlling authority: Mich. Comp. Laws § 205.52c(1) ↗
- Marketplace facilitator
- Yes — effective January 1, 2020
- Streamlined (SST)
- Full member
- Administered by
- Michigan Department of Treasury ↗
What to watch in Michigan
- SaaS is generally not taxable following Michigan case law on remotely accessed software.
- Groceries and prescription drugs are exempt; a single statewide rate keeps filing simple.
Rates, thresholds, and taxability change mid-year — verify against the Michigan Department of Treasury before advising. In L3i, every determination is cited to the controlling authority.
The Michigan voluntary disclosure agreement.
Behind in Michigan? There’s a front door. The voluntary disclosure program lets a business settle unregistered-period exposure on defined terms — before the state finds it first. The terms that shape the client conversation:
Administered by the Michigan Department of Treasury ↗ · also reachable through the MTC multistate voluntary disclosure program. Program terms as of February 2026 — confirm current terms before filing. L3i pairs the exposure math with the filing itself — see exposure analysis & VDA services.
Michigan, in brief.
What is the economic nexus threshold in Michigan?
$100,000 or 200 transactions, effective October 1, 2018. Once the threshold is crossed, remote sellers must register with the Michigan Department of Treasury and begin collecting.
What is the sales tax rate in Michigan?
The state sales tax rate is 6%. No local sales taxes.
Do marketplace facilitators collect Michigan sales tax?
Yes — marketplace facilitators have been required to collect since January 1, 2020. Direct (non-marketplace) sales remain the seller’s obligation.
How does a remote seller register for Michigan sales tax?
Register with the Michigan Department of Treasury before collecting — a remote seller must register once it crosses the economic nexus threshold ($100,000 or 200 transactions). As a Streamlined Sales Tax member state, Michigan also accepts central registration through the SST system, which covers all member states in one application.
Does Michigan offer a voluntary disclosure agreement (VDA)?
Yes — the Michigan Department of Treasury administers a voluntary disclosure program with a lookback of 48 months (4 years). Penalties are generally waived; interest is generally still due. An advisor can approach the state anonymously before disclosing the client’s identity.
A page tells you the rule. The platform applies it — and remembers why.
L3i runs Michigan determinations against a deterministic rules engine, cites the controlling authority, and captures your firm’s judgment so the next Michigan question starts further ahead.
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