Sales Tax. Individuals or businesses that sell tangible personal property to the final consumer are required to remit a 6% sales tax on the total price (including shipping and handling charges) of their taxable retail sales to the State of Michigan. Michigan does not allow city or local units to impose sales tax.

Who is exempt from Michigan sales tax?

Goods that are subject to sales tax in Michigan include physical property, like furniture, home appliances, and motor vehicles. Groceries, prescription medicine, and gasoline are all tax-exempt.

Does Michigan require sales tax on services?

In Michigan, certain goods are subject to the 6% sales tax while certain services are subject to a 6% use tax that is imposed on the purchaser or consumer of services for the privilege of using that service in this State.

How do I get a sales tax exemption in Michigan?

How to Claim the Michigan Sales Tax Exemption for Manufacturing. Michigan manufacturers can easily purchase exempt manufacturing items by supplying their vendors with “Michigan Sales and Use Tax Certificate of Exemption – Form 3372”. This form can be found on the Michigan Department of Treasury’s website.

What is the Michigan sales tax discount?

Many states encourage the timely or early filing of sales and use tax returns with a timely filing discount. As of March 2019, the Michigan Department of Treasury offers: An on-time discount of 0.5 percent on the first 4 percent of the tax.

Do you have to pay sales tax on services in Michigan?

In the state of Michigan, services are not generally considered to be taxable. While most services are exempt from tax, there are a few exceptions. For example, a service who’s work includes creating or manufacturing a product is very likely considered to be taxable, and thus you would most likely have to pay sales tax on the service.

What is the corporate income tax rate in Michigan?

The Michigan Corporate Income Tax (CIT) was signed into law by Governor Rick Snyder on May 25, 2011. The CIT imposes a 6% corporate income tax on C corporations and taxpayers taxed as corporations federally. The CIT has one credit, the small business alternative credit, which offers an alternate tax rate…

Are there any delivery charges that are taxable in Michigan?

Are delivery, shipping or handling charges taxable? Delivery charges include, but are not limited to, transportation, shipping, postage, handling, crating, and packing and are generally subject to Michigan tax.

Do you have to pay sales tax on drop shipments in Michigan?

In Michigan, drop shipments are generally subject to state sales taxes . This table shows the taxability of various goods and services in Michigan. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead.