(720) 432-9021

Michigan Sales Tax Guide for Businesses

Fast Facts


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.

Receive a complementary nexus study from our team.

You'll learn where you owe sales tax and what your historical liabilities are.

Receive a free nexus study to learn where you owe sales tax.

Free Resource: The ULTIMATE Sales Tax Checklist

This guide breaks down the process of getting compliant in 5 simple steps.

 

This is a great resource if you're starting to figure things out on your own.

Thanks for Subscribing!