Michigan Sales Tax: One 6% Rate, No Local Tax and the February 28 Annual Return

One rate across the whole state is rare, and it makes Michigan easy to get right at the till. The deadlines are where sellers slip. This guide uses the Michigan Department of Treasury's sales and use tax pages, read in October 2026.

Michigan sales and use tax rates

What's sold	Rate (as of October 2026)
Taxable retail sales of tangible personal property	6%
Electricity, natural or artificial gas and home heating fuel for residential use	4%
Use tax on taxable items brought into Michigan or bought from out-of-state sellers that don't collect	6%
City or local sales tax	Not allowed in Michigan

Who uses the 4% rate

The 4% rate is narrow. It covers electricity, natural or artificial gas and home heating fuels sold for residential use. A utility or fuel supplier selling to homes uses it, and almost everyone else charges 6%. If you're a shop, salon, cafe or online seller, the 4% rate won't apply to anything you sell.

Use tax: the companion tax

Use tax is the other half of the system. If you buy taxable items online, by mail or by phone from an out-of-state seller that doesn't collect Michigan tax, or bring them into the state, you owe 6% use tax to the State of Michigan. For a business, that's typically equipment, supplies and software bought from sellers outside Michigan.

Your sales tax license runs on the calendar year

You register with Treasury to get a sales tax license, and it's valid from January 1 to December 31. Treasury then decides how often you file, and it reviews that frequency each year.

Michigan sales tax due dates

Filing frequency	Due date
Monthly	The 20th of the following month
Quarterly, first quarter	April 20
Quarterly, second quarter	July 20
Quarterly, third quarter	October 20
Quarterly, fourth quarter	January 20 of the following year
Annual	February 28 of the following year

When a due date falls on a weekend or holiday, the return and payment are due the next business day.

The annual return almost everyone forgets

This is the one that catches people. Treasury says every filer must submit an annual return by February 28, whatever filing frequency they've been given. So a monthly filer who has paid all twelve months on time still owes a return in February. Think of it as the year's reconciliation, not an extra tax. It's also where any difference between what you paid during the year and what you owed gets settled.

Who owes Michigan use tax in practice

Use tax applies to the total price of taxable items brought into Michigan, and to items bought online, by mail or by phone from out-of-state retailers that don't collect sales or use tax. For a small business, the usual culprits are office equipment, devices, stock bought from suppliers in other states and items shipped in for use rather than resale. Keep those invoices in one place and you'll see what's owed each period.

A simple Michigan sales tax routine

1. At each sale, charge 6% on the total price of taxable items.
2. Once a month, add up untaxed business purchases from out-of-state sellers and work out 6% use tax.
3. File and pay by the 20th through Michigan Treasury Online, using the frequency Treasury gave you.
4. Each January, check whether Treasury has changed your filing frequency for the year.
5. Before February 28, file the annual return that reconciles the whole year.

Because Michigan has no local rates, you don't need a rate lookup tool for addresses inside the state. That's one less thing to maintain, so spend the saved time on the dates instead.

When the 20th falls on a weekend

Treasury publishes a separate list of sales, use and withholding tax due dates for holidays and weekends. If the 20th is a Saturday, Sunday or holiday, the return and payment are due the next business day, but don't guess the date. Check the list for the year you're filing.

Accelerated filers

Larger sellers can be put on accelerated payments. They make a prepayment by the 20th of the current month and a reconciliation payment by the 20th of the next month to cover the rest, and they file on a monthly frequency.

Getting it right, step by step

1. Register with Treasury for a sales tax license.
2. Set one 6% rate for taxable sales, and 4% only for residential energy if you sell it.
3. Note the filing frequency Treasury gives you and diarise the 20th.
4. Accrue 6% use tax on business purchases from out-of-state sellers that didn't charge it.
5. File the annual return by February 28, even if every month is already paid.

If you hire in Michigan, my Michigan minimum wage page covers the wage side. Buying stock to resell? Use a resale certificate.

My verdict

Michigan hands you the simplest rate in the region: 6%, everywhere, with no local add-ons. Don't let that make you casual about dates. File by the 20th, pay use tax on untaxed purchases, and put February 28 in your calendar for the annual return every single year. A flat rate is the easy part. The calendar is the job.

Ohio works differently, letting counties and transit authorities add their own layers on top of the state rate, which our Ohio sales tax guide walks through.

Frequently asked questions

What is the sales tax rate in Michigan?

It's 6% as of October 2026 on taxable retail sales. Residential electricity, gas and home heating fuel are taxed at 4%.

Do Michigan cities charge their own sales tax?

No. Michigan doesn't allow cities or local units to impose a sales tax, so the rate is the same across the state.

When is Michigan sales tax due?

Monthly returns are due on the 20th of the following month, quarterly returns on April 20, July 20, October 20 and January 20, and annual returns by February 28.

Is a Michigan annual sales tax return needed if I file monthly?

Yes. Treasury says all filers must submit an annual return by February 28, regardless of their filing frequency.

What is Michigan use tax?

It's a 6% tax on taxable items brought into Michigan or bought from out-of-state sellers that don't collect Michigan tax.