Michigan Sales Tax Guide for Businesses
Return Location: Online
Has Local Filings: Yes
Sales Tax Rate: 6% state rate. There are no local sales tax rates in Michigan.
Contact Information: Visit their website or call 517-636-6925 for their sales tax hotline.
How is Tax Calculated?: Michigan sales taxes are based on the destination of the sale (rate is based on where the buyer is located).
Are Services Taxable?: Some services are subject to sales tax in Michigan. Read more here.
Nexus in Michigan
What Creates Nexus: A business is considered to be “engaging in business in Michigan” (and therefore owe sales tax) if they sell tangible personal property to the final consumer.
Read more about nexus conditions in Michigan here.
Affiliate Nexus: As of October 1st 2015, Michigan does have affiliate nexus laws for out of state sellers. Read more here.
eCommerce Nexus?: Michigan does have special laws that create nexus for online sellers, specifically “click-through” nexus. Read more here.
How to File a Sales Tax Return in Michigan
Online: Michigan requires that you file a sales tax return online using the Michigan Treasury Online site.
We will be adding an instructional video here at a later date.
How to Get a Sales Tax Permit in Michigan
View our full guide: Coming soon
Where to Register: Michigan UIA
Registration Fee: There is no fee for registering your business in Michigan
Renewal Required?: Yes, Michigan requires that you renew your business permit annually.
Michigan Sales Tax Filing Frequency
Michigan has taxpayers file on a monthly, quarterly, or annual basis depending on their monthly tax liabilities:
Monthly: For monthly tax liabilities over $1,000
Quarterly: For monthly tax liabilities between $62 to $1,000
Annually: For monthly tax liabilities between $0 to $62
Discounts: There is an early filing discount of 0.5% on the first 4% of the tax (or 0.75% if paid by the 12th of the month), with a minimum of $6 and a maximum of $15,000 per month
Late Fees: If you file your return or pay tax late in Michigan, the penalty is 5% of the total unpaid tax due for the first two months. After two months, 5% of the unpaid tax amount is assessed each month. The maximum late penalty is equal to 25% of the unpaid tax owed
Read more about Michigan sales tax penalties and late fees here.
Michigan Sales Tax Return Due Dates
Michigan’s sales tax returns are typically due on the 19th of the following month. Read more on Michigan’s website.
Monthly Filing Frequency
January Collection — February 20th
February Collections — March 20th
March Collections — April 20th
April Collections — May 21st
May Collections — June 20th
June Collections — July 20th
July Collections — August 20th
August Collections — September 20th
September Collections — October 22nd
October Collections — November 20th
November Collections — December 20th
December Collections — January 22nd (following year)
Quarterly Filing Frequency
Q1: Jan – March Collections — April 20th
Q2: April – June Collections — July 20th
Q3: July – September Collections — October 22nd
Q4: October – December Collections — January 22nd (following year)
Annual Filing Frequency
January – December Collections — February 28th (following year)
Michigan Sales Tax Holidays
Michigan does not offer any sales tax holidays in 2018.
Special Notes for Amazon Sellers
Amazon does have a warehouse in Texas. Be sure to check to see if your FBA inventory is being stored in Texas, as it will create a sales tax obligation.
We can help you determine where Amazon is storing your inventory. Contact us to learn more.