Michigan sales tax on invoices (2026 guide)

Michigan keeps it simple: the sales tax rate is 6%, and there are no city, local or county sales taxes. Whether your customer is in Detroit, Grand Rapids or the Upper Peninsula, the rate is the same.

That makes Michigan one of the easiest states to invoice in. Here's what else you need to know.

Michigan sales tax rate

Tax	Rate
State sales tax	6%
Local sales taxes	none

Because there's only one rate, you can set up a single 6% tax line for all Michigan customers.

Is what you sell taxable in Michigan?

Michigan's sales tax applies to retail sales of tangible personal property — physical goods.

• Physical products are generally taxable unless specifically exempt.
• Services are generally not subject to Michigan sales tax, and Michigan's returns allow a deduction for separately itemized nontaxable service charges.
• When a sale includes both goods and services, itemize the service charges separately so the non-taxable part is clear on the invoice and on your return.

Some services connected with the goods you sell can be treated as part of the taxable sale, so if you're unsure how a combined job is taxed, check the Department of Treasury's guidance before you invoice.

Getting a Michigan sales tax license

If you sell taxable goods, you need a Michigan sales tax license. You can:

• register online through Michigan Treasury Online (MTO) — you can receive a license in as little as seven business days, or
• mail Form 518, Registration for Michigan Taxes (allow four to six weeks).

Sales tax licenses are issued yearly and are valid from January to December of the tax year shown on the license.

What a Michigan invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and invoice date,
• a description and price for each item or service — services itemized separately,
• sales tax (6%) as a separate line, and
• the total due.

In Invoice Native, add a single 6% tax line and tick Tax only on the goods.

Exempt customers and Form 3372

Customers who are exempt — for example businesses buying for resale, or qualifying nonprofits — give you Form 3372, Michigan Sales and Use Tax Certificate of Exemption, or the same information in another acceptable format. Keep it on file, don't charge tax on that sale, and note the exemption on the invoice.

See how to invoice a tax-exempt customer.

A worked example

Suppose you sell and deliver $900 of custom furniture to a customer in Michigan. At the 6% rate, the tax is $900 × 6% = $54.00, and the invoice total is $954.00 — no matter which city the customer is in.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Michigan's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on Michigan invoices

• Adding a local sales tax — Michigan doesn't have one.
• Not itemizing service charges separately from the goods you sell.
• Letting the sales tax license lapse — licenses are issued for each tax year.
• Accepting incomplete exemption claims — use Form 3372 or its equivalent information.
• Not showing sales tax as its own line.

Keeping records for Michigan sales tax

Keep a copy of every invoice, a record of the tax you collected, and every Form 3372 you accept. Store them together by tax year, matching the yearly license. If Treasury asks why a sale wasn't taxed, the exemption certificate and a clearly itemized invoice are your evidence.

A simple routine helps: at the end of each filing period, total the tax on your invoices, compare it with what you're reporting, and file on time.

Quick checklist for Michigan invoices

• ✅ Sales tax license (renewed each year) if you sell taxable goods
• ✅ One rate everywhere: 6%
• ✅ Services itemized separately from goods
• ✅ Sales tax shown as a separate line
• ✅ Form 3372 on file for exempt customers