Do I have to charge sales tax for online sales in Michigan?
Quick answer
Only after you cross economic nexus. Once you exceed $100,000 in sales into Michigan or 200 separate transactions over 12 months, you must register with the Michigan Department of Treasury and charge the buyer's destination rate.
Michigan uses $100,000 in sales or 200 transactions in the previous calendar year.
Rule summary
How Michigan treats each category.
| Economic nexus — sales threshold | $100,000 |
|---|---|
| Transaction-count threshold | 200 separate transactions |
| Marketplace facilitator collection | Required — Amazon, Etsy and eBay collect on your behalf for their sales |
| Rate to charge | The buyer's destination rate (6% in covered Michigan metros) |
| Registration authority | Michigan Department of Treasury |
This page summarizes the general rule. Every state writes exceptions for specific products, and local jurisdictions can differ from the state treatment. Confirm your situation with the Michigan Department of Treasury or a tax professional before relying on it for filing.
Combined rates in Michigan
What a taxable purchase actually costs in Michigan.
Frequently asked
Answers pulled from the same rule set.
- Do I have to charge sales tax for online sales in Michigan?
- Only after you cross economic nexus. Once you exceed $100,000 in sales into Michigan or 200 separate transactions over 12 months, you must register with the Michigan Department of Treasury and charge the buyer's destination rate.
- Do marketplace sales count toward the Michigan threshold?
- Marketplaces collect and remit for their own sales, but most states still count those sales when measuring your $100,000 threshold. Check the Michigan Department of Treasury guidance before excluding them.
- Which rate does an online seller charge in Michigan?
- Michigan sources remote sales to the delivery address, so you charge the buyer's combined state, county, city and district rate, not your own location's rate.
More Michigan guides
Other Michigan rules that change the total.