Using the state rate and ignoring local tax
The state rate is 6.00% but the average customer pays 6.00%. Under-collecting leaves you funding the difference out of your own margin.
USD · 6.00% average combined rate · Reviewed September 2026
Michigan Invoice Generator & Sales Tax Guide
Create a Michigan Invoice and Check the Michigan Tax Position
Build a professional invoice for a customer in Michigan below — free, no account, no watermark. Set your own tax rate, add line items and download a clean PDF.
Michigan's constitution caps the sales tax rate and no local sales taxes exist, so one rate applies statewide.
Michigan sales tax rates
Michigan charges sales and use tax at 6.00% statewide. There are no local add-ons, so one rate applies across the state.
| Statewide rate | 6.00% |
|---|---|
| Average local add-on | 0.00% |
| Highest local add-on tracked | 0.00% |
| Average combined rate | 6.00% |
| Rank by combined rate | 38th highest of 50 states |
Local rates in Michigan
Michigan does not allow local sales taxes. The 6.00% state rate applies in every city and county, which removes the address-lookup problem that sellers face in most other states.
Special rates can still apply to particular categories — lodging, prepared food, vehicle rental and similar — so check the category as well as the rate.
What to put on a Michigan invoice
- The word Invoice and a unique invoice number
- Your business name, address, email and phone
- The customer's legal name and Michigan billing address
- Invoice date and a calendar due date, not just Net 30
- A line for each item or service with quantity and rate
- Any sales and use tax shown on its own line with the rate used
- How to pay — ACH details, check payee or a payment link
- A purchase order number where the customer issued one
- Your state tax permit number where the state expects it
- A reference to an exemption or resale certificate on exempt sales
Registering and filing in Michigan
Sellers with a physical presence in Michigan — premises, staff, stock or regular on-site work — generally register with the Michigan Department of Treasury before their first taxable sale. Remote sellers register once their sales into the state cross the state's economic nexus threshold.
Filing frequency is set by the state and usually depends on how much tax you collect: larger collectors file monthly, smaller ones quarterly or annually. The Michigan Department of Treasury sets and notifies your frequency — do not assume it stays the same as your volume grows.
We deliberately do not publish thresholds, filing deadlines or penalty amounts on this page. Those numbers change, and the only copy worth relying on is the one on the state's own site, linked below.
Exempt sales and certificates
Resale, manufacturing, non-profit and government exemptions all exist in Michigan, and each one depends on a valid certificate from the buyer, not on the buyer's word. Collect the certificate before you issue a zero-tax invoice.
Reference the certificate on the invoice rather than silently leaving tax off. A tax line of $0.00 with a note explaining why is far easier to defend in an audit than an invoice with no mention of tax at all.
Example Michigan invoice
A contractor billing a Michigan customer for equipment and labour, showing how the tax line sits under the subtotal.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Equipment supplied and installed | 1 | $1,600.00 | $1,600.00 |
| On-site labour | 8 | $100.00 | $800.00 |
| Subtotal | $2,400.00 | ||
| Michigan sales and use tax at the 6.00% average combined rate | $144.00 | ||
| Total due — Net 30 | $2,544.00 | ||
Common Michigan invoicing mistakes
Charging tax without being registered
Collecting sales and use tax before you are registered creates a liability with no account to remit it to, and the customer cannot reclaim it.
Assuming services are treated like goods
Taxability of services varies widely between states and within them. Confirm the treatment of your specific service with the Michigan Department of Treasury rather than copying what a supplier in another state does.
Leaving the due date implied
Write both the terms and a calendar date. In a corporate payment run, an ambiguous due date always resolves in the payer's favour.
Filing the certificate nowhere
Exemption and resale certificates are what justify a zero-tax invoice years later. Store them alongside the invoice, not in an inbox.
Sending to your day-to-day contact only
Your contact commissioned the work; a different inbox pays for it. Ask for the accounts payable address at the start.
Michigan invoicing FAQs
What is the sales tax rate in Michigan?
The statewide rate is 6.00%. Local jurisdictions add 0.00% on average and up to 0.00% where local taxes are highest, giving an average combined rate of 6.00% — the 38th highest average combined rate in the country. Figures are from the Tax Foundation's midyear 2026 table; always confirm the rate for your customer's exact address with the Michigan Department of Treasury.
Do I have to charge Michigan sales and use tax on my invoices?
Only if you are registered in Michigan and what you sell is taxable there. Registration is triggered by physical presence or by crossing the state's economic nexus threshold for remote sellers. Taxability of services in particular varies, so check the position for your specific work with the Michigan Department of Treasury before adding a tax line.
Does Michigan have local city or county sales taxes?
No. Michigan has no local sales taxes, so the 6.00% state rate applies everywhere in the state.
Is a specific invoice format required in Michigan?
There is no prescribed commercial invoice template in Michigan. What matters is that the invoice identifies both parties, describes the supply, shows the amount due, shows any sales and use tax separately, and can be reconciled with your returns and records.
Where do I register for Michigan sales and use tax?
Through the Michigan Department of Treasury, which runs registration, filing and rate lookups for Michigan. Its website is linked in the official sources section on this page.
Can I invoice a Michigan customer from another state or country?
Yes — the invoice itself is the same document. The question is whether your sales into Michigan create a registration obligation there. Remote sellers can be required to register once they exceed the state's economic nexus threshold, so track your sales by state.
Official sources
Last reviewed September 2026.
- Michigan Department of Treasury
The primary authority for Michigan registration, rates, filing and exemption rules.
- Tax Foundation — State and Local Sales Tax Rates, Midyear 2026
Secondary source for the statewide, average local and combined rate figures shown above.
- Federation of Tax Administrators — state tax agencies
Directory used to locate each state's official tax agency.
- IRS — small business and self-employed tax center
Federal guidance on business income, record-keeping and Form W-9.
Related tools and reading
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