Michigan sales tax for online sellers: nexus, permit and filing

What is the Michigan sales tax rate?

The rate is 6% statewide, and Michigan has no local sales taxes, so the same rate applies to every delivery address. Groceries and prescription drugs are exempt. Software that customers only access online is generally not taxed.

When does an online seller have to collect in Michigan?

You must collect if you have a physical presence in Michigan, such as staff, an office or inventory, or if in the previous calendar year your sales into Michigan were more than $100,000 or you made 200 or more separate transactions. Either test is enough. Both taxable and exempt sales count, and several guides say sales made through marketplaces count as well. Because Michigan looks at the previous year, a seller that passes a test during a year starts collecting from January 1 of the next year.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Michigan requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Register online through Michigan Treasury Online for a sales tax license. There is no fee. The license is renewed each year at no charge.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Michigan against its threshold.

2. Register before collecting

   With the Michigan tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Michigan assigns, including zero returns where required.

How are returns filed?

Returns are filed through Michigan Treasury Online and are due by the 20th of the month after the period. The Department of Treasury assigns monthly, quarterly or annual filing based on the tax you collect. Michigan also asks registered sellers for an annual return after the year ends, which reconciles the year.

See how to file a sales tax return.

When do you start collecting in Michigan?

Michigan measures both tests over the previous calendar year only. A seller whose Michigan sales pass $100,000 in June 2026 has no duty to collect during the rest of 2026; the obligation begins on January 1, 2027, and lasts for that whole year. Use the time to register, set up your store's tax settings and decide how you will file.

Why does the 200-transaction test matter?

Because it can be met at a low sales value. A seller of $20 items reaches 200 Michigan orders after $4,000 of sales, and from the following January must register and collect. Many states have dropped their transaction tests, but Michigan has kept its own, so count orders as well as dollars.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.