Michigan's statewide sales tax is 6%, but your actual rate depends on what you buy and which county you're in
Michigan charges a base sales tax of 6% on most purchases. However, individual counties can add their own tax on top of that rate, which means the total you pay at checkout ranges from 6% to 7% depending on where you shop. Some products are taxed differently or not taxed at all, so the rate you see on a receipt is not always the same as the rate your neighbor pays for an identical item.
The Michigan Department of Treasury sets the statewide rate. County commissions decide whether to add a local tax, and those decisions change over time. If you live near a county border or shop in multiple counties, you may notice your receipt shows different totals for the same store chain.
Key Takeaways
- Michigan's base sales tax is 6%, but 29 counties add a 1% local tax, bringing their total to 7%.
- Groceries, prescription medications, and medical devices are not subject to sales tax in Michigan.
- The tax rate that applies is the rate in the county where the sale takes place, not where you live or where the business is based.
- Online purchases are taxed at the rate of the county where the item is delivered, so your tax may differ from a store purchase in your own county.
Which Michigan counties charge 7% sales tax
Twenty-nine Michigan counties have voted to add a 1% local sales tax on top of the 6% state rate, bringing their total to 7%. These counties are: Allegan, Barry, Bay, Berrien, Branch, Calhoun, Cass, Eaton, Genesee, Gratiot, Hillsdale, Ingham, Ionia, Iosco, Jackson, Kalamazoo, Kent, Lapeer, Livingston, Mecosta, Montcalm, Muskegon, Newaygo, Osceola, Ottawa, Saginaw, Shiawassee, St. Joseph, and Tuscola.
The remaining 54 Michigan counties charge only the 6% state rate. Local tax rates can change if a county votes to add or remove the additional 1%, so if you move or shop in a new area, confirm the current rate before assuming your receipt will match what you paid elsewhere.
What products are not taxed in Michigan
Michigan does not charge sales tax on groceries — items you buy at a supermarket to cook at home, including meat, produce, dairy, bread, and pantry staples. Prepared food you eat at a restaurant or food court is taxed, but raw ingredients are not.
Prescription medications and over-the-counter drugs covered by a prescription are also tax-free. Medical devices such as hearing aids, prosthetics, and diabetic testing supplies are exempt. Insulin and other diabetes medications are not taxed. If you are unsure whether a specific medication or device qualifies, ask the pharmacist or retailer before checkout — they can tell you whether the item will be taxed.
Clothing and footwear are taxed in Michigan, so there is no tax break on back-to-school shopping or winter coats. Some states exempt clothing, but Michigan does not.
How sales tax is calculated on your receipt
The sales tax you pay is based on the county where the transaction takes place. If you buy something in a store in Kent County (7% total), you pay 7% even if you live in a 6% county. If you order online and the item ships to your home in a 6% county, you pay 6% — the tax follows the delivery address, not your billing address or the seller's location.
The tax is calculated on the subtotal before any discounts are applied. If you use a coupon that reduces the price, the tax is calculated on the reduced amount. Sales tax is not charged on the tax itself — it is a single calculation on the final taxable price.
Why your receipt might show a different rate than you expected
If you cross a county line to shop, you will see a different tax rate. A store in Kalamazoo County charges 7%, but the same chain location in Allegan County also charges 7% because both counties added the local tax. However, if you shop just across the border in a 6% county, your receipt will show 6%.
Online purchases can be confusing because the tax is based on the delivery address, not the store's location. You might order from a Michigan business but pay a different rate than you would in person, depending on where the package is sent. Some online retailers display the tax rate before you complete your order, but others show it only at checkout.
How to find the current sales tax rate for a specific county
The Michigan Department of Treasury maintains a list of current sales tax rates by county on its website. You can search by county name to see the exact rate, including any local additions. This rate applies to all taxable purchases in that county, regardless of what type of business you are shopping at.
If you are planning a large purchase or moving to a new county, checking the official rate takes one minute and removes guesswork. Rates do not change frequently, but they can shift if a county votes to add or remove a local tax, so the official source is more reliable than an old receipt or a neighbor's memory.
Frequently Asked Questions
Do I pay sales tax on used items bought from a private person?
No. Sales tax applies only to sales by a business or retailer. If you buy a used car, furniture, or clothing from another individual, there is no sales tax. However, if you buy used items from a business — such as a used car dealer or consignment shop — sales tax applies at the rate for that county.
Is sales tax charged on shipping costs?
It depends on the retailer and the item. Some retailers include shipping in the taxable price, while others tax only the item itself. The retailer's policy determines this, not Michigan law. Check your receipt or the retailer's website before checkout if you want to know whether shipping will be taxed.
What if I buy something in Michigan but have it shipped to another state?
You pay the sales tax rate of the state where the item is delivered. If you buy from a Michigan retailer but have it shipped to Ohio, you pay Ohio's sales tax, not Michigan's. The delivery address determines the tax rate, not the seller's location.
Do I owe sales tax when I buy something online from out of state?
If the item is delivered to a Michigan address, Michigan sales tax applies at the rate for that county. Most large online retailers now collect Michigan sales tax on orders shipped to Michigan, even if the retailer is based elsewhere. Smaller retailers may not, but Michigan law requires you to report and pay the tax yourself if it was not collected — though most individual purchases are not audited.
Are there any other products besides groceries and medications that are not taxed?
Newspapers and magazines are not taxed. Items used for farming or manufacturing — such as seeds, fertilizer, and certain equipment — may be exempt under specific conditions. If you run a business or farm, ask the Michigan Department of Treasury or your accountant whether a particular purchase qualifies for an exemption.