How to compute mi-sales-tax for Michigan, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
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State sales tax rate (flat)
6.00%Michigan Compiled Laws (MCL) § 205.52
Local sales tax rate
None (0%)Michigan Compiled Laws (MCL) § 205.52
Maximum combined sales tax rate
6.00%Michigan Compiled Laws (MCL) § 205.52
Sourcing method
Destination-based (SST)Streamlined Sales and Use Tax Agreement (SSUTA); MCL § 205.52b
Economic nexus threshold — sales revenue
$100,000MCL § 205.52(1)(c); Michigan Department of Treasury Notice: Remote Sellers
Economic nexus threshold — transaction count
200 transactionsMCL § 205.52(1)(c); Michigan Department of Treasury Notice: Remote Sellers
Streamlined Sales Tax membership status
Full memberStreamlined Sales and Use Tax Agreement (SSUTA)
General tangible personal property (TPP) — taxable rate
TAXABLE 6%MCL § 205.52
Clothing — taxability
TAXABLE (no exemption)MCL § 205.54a
Grocery food — taxability
EXEMPTMCL § 205.54g
Prepared food — taxability
TAXABLEMCL § 205.54g
SaaS (Software as a Service) — taxability
NOT TAXABLEMichigan Department of Treasury Revenue Administrative Bulletin 2016-18
Canned/prewritten software (downloaded) — taxability
TAXABLE (prewritten software treated as TPP)MCL § 205.52; Michigan Department of Treasury Revenue Administrative Bulletin 2016-18
Professional services — taxability
NOT TAXABLEMCL § 205.54
Manufacturing/industrial processing equipment — taxability
EXEMPT (industrial processing exemption)MCL § 205.54t
Prescription drugs — taxability
EXEMPTMCL § 205.54g
Resale purchases — taxability
EXEMPTMCL § 205.54a(1)(a)
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Michigan |
| State rate | 6.00% (flat -- no local sales tax) |
| Local taxes | None |
| Maximum combined rate | 6.00% |
| Sourcing | Destination-based (SST) |
| Economic nexus | $100,000 OR 200 transactions |
| Tax authority | Michigan Department of Treasury |
| Portal | https://www.michigan.gov/treasury |
| SST member | Yes (full member) |
| Skill version | 2.0 |
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 6% | |
| Clothing | TAXABLE | No exemption |
| Grocery food | EXEMPT | |
| Prepared food | TAXABLE | |
| SaaS | NOT TAXABLE | Michigan does not tax SaaS |
| Canned software (download) | TAXABLE | Prewritten software is TPP |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | Industrial processing exemption |
| Prescription drugs | EXEMPT | |
| Resale | EXEMPT |
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This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Michigan computations in the OpenAccountants Tax Library.
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