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Michigan is a destination-based state (sales are taxed where the buyer is located).
To file your sales tax return:
The Michigan state sales tax rate is 6%. No additional local, city, or county tax rates are imposed.
Generally, food and food ingredients are exempt from sales and use tax, while prepared foods are subject to the 6% tax rate.
Business activities that establish a minimum tax connection to the state include:
Online activities that establish nexus in Michigan include:
Economic nexus in Michigan:
Find out more information about nexus in Michigan.
Monthly and quarterly returns are due on or before the 20th day of the month following the end of the filing period. Annual returns are due on or before February 28th.
Your filing frequency is determined by the Department of Treasury based on your estimated tax liability when you register:
To register for Michigan sales taxes, you may either complete the online registration process through Michigan Treasury Online or mail Form 518.
Online registration is authenticated within 10-15 minutes of application submission. If mailing Form 518, allow 4-6 weeks for processing.
Penalties are 5% of the total unpaid tax due for the first two months. After two months, 5% of the unpaid tax amount is assessed each month. The maximum late penalty is equal to 25% of the unpaid tax owed.
Interest is calculated by multiplying the unpaid tax owed by the current interest rate.
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