Michigan Sales Tax Guide for eCommerce Businesses
Michigan Sales Tax Guide for eCommerce Businesses
Sales Tax eBook
Contact Us
Michigan's Sales Tax Authority
State Phone Information
517-335-7508
Member of the Streamlined Sales Tax Governing Board?
Tax percent range for remote sellers in Michigan
6%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Michigan?
If you have nexus in Michigan you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Michigan charge sales tax on shipping?
Yes
Do you have physical nexus in Michigan?
A seller has physical nexus in Michigan if they "sell tangible personal property to a consumer" this should be extended to sellers who do any of the following:
Sell a line of products that is similar to one sold by an in-state business under a similar business name
Use employees, agents, representatives, or independent contractors in Michigan to promote or facilitate sales to purchasers in the state
Use an office, distribution facility, warehouse, storage place, or similar place of business to help sell or deliver tangible personal property to buyers in the state
Use the same or substantially similar trademarks, service marks, or trade names as an in-state business
Deliver, install, assemble, or perform maintenance or repair services for purchasers in the state
Have someone in the state that allows your customers to pick up or return tangible personal property at a place of business in the state?
Share management, business systems, business practices, or employees with a Michigan seller, or in the case of an affiliated person, engage in intercompany transactions related to the activities occurring with the seller to establish or maintain the seller’s market in the state
Do you have economic nexus in Michigan?
Michigan's Economic Nexus Sales Threshold
$100,000
Economic Transactions Threshold
Or 200 transactions
Economic Nexus Evaluation Period
Previous Year
Economics Nexus Effective Date
October 1, 2018
What types of sales are included in Michigan's Economic Nexus Sales Threshold?
Gross Sales
All sales including Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold
How does Michigan treat exempt transactions when calculating economic nexus?
Exempt sales and exempt services are included in the threshold
Does Michigan have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Michigan sales tax returns are almost always due the 20th of the month following the reporting period. (The exception is the annual sales tax return, which is due the last day of February the year following the taxable period.) If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
How often are Sales Tax Returns filed?
Monthly, Quarterly or Annually
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - Use the Michigan Department of Treasury website to file online
Mail - Monthly/Quarterly filers can use Form 5080 to file and pay through the mail
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