As an e-commerce seller, you will need to collect sales tax in Michigan if you have:  

(1) Taxable and nontaxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year (economic nexus), or  

(2) Physical presence in Michigan (physical nexus).  

Below, we will highlight some of the basic provisions of Michigan sales tax law. 

What is the tax rate range for Michigan?  

State: Michigan’s general sales tax rate is 6%.  Sales of electricity, natural or artificial gas and home heating fuels for residential use are taxed at a 4% rate. 

Local: Michigan does not have local sales tax jurisdictions.  

Do you have physical or economic nexus in Michigan? 

Physical nexus. Certain business activities create physical nexus for retail merchants in Michigan. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Michigan. Examples of business activities that can create physical nexus: 

  • Uses its employees, agents, representatives, or independent contractors in Michigan to promote or facilitate sales by the seller to purchasers in Michigan. 
  • Maintains, occupies, or uses an office, distribution facility, warehouse, storage place, or similar place of business in Michigan to facilitate the delivery or sale of tangible personal property sold by the seller to the seller's purchasers in Michigan. 
  • Uses, with the seller's consent or knowledge, trademarks, service marks, or trade names in Michigan that are the same or substantially similar to those used by the seller. 
  • Delivers, installs, assembles, or performs maintenance or repair services for the seller's purchasers in Michigan. 

MCL 205.52b 


Economic nexus.  Remote sellers and marketplace facilitators that have taxable and non-taxable sales exceeding $100,000 or 200 or more separate transactions in the previous calendar year are required to collect and remit Michigan sales or use tax.  Additional information on economic nexus requirements: 

  • Remote sellers count transactions made through a marketplace facilitator in determining if it has economic nexus 
  • Marketplace facilitators must include both transactions made on its own behalf and transactions facilitated for sellers in determining if it has economic nexus in Michigan 

Remote Seller FAQ and Marketplace Facilitator/Marketplace Seller FAQ 


What are examples of sales of taxable items? 

  • Tangible personal property, unless specifically exempted 
  • Certain services 
  • Clothing  
  • Leased tangible personal property 

Overview of Use Tax for Sellers of Services and What Are Sales and Use Taxes? 


What are examples of sales of nontaxable/exempt items? 

  • Food (except prepared food) 
  • Prescription drugs 
  • Certain agricultural items  
  • Software as a service (SaaS) 
  • Digital goods 

Exemptions FAQ  

Are there any sales tax holidays? 

Currently, Michigan does not have any sales tax holidays. 

Is Michigan a member of the SST (Streamlined Sales Tax)? 

Currently, Michigan is a full member of the Streamlined Sales Tax Governing Board (SSTGB).   

How to get a sales tax permit / links to register in this state? 

You can register online at:  

Streamlined Sales Tax Registration System 

Michigan Treasury Online (MTO) 


Michigan is a one-rate state, there are no local jurisdictions that impose a sales tax.

  Get your complaince assessment