Which state has the lower sales tax nexus threshold, Michigan or Arizona?

Both Michigan and Arizona publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-05-31; confirm against the official source before registering.

Do both Michigan and Arizona have marketplace facilitator laws?

Yes. Both Michigan and Arizona have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-31.

Which has the lower sales tax rate, Michigan or Arizona?

Michigan has the lower combined state and local sales tax rate at 6.00%, compared with 8.52% in Arizona. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-31.

Do I need to register for sales tax in both Michigan and Arizona?

It depends on where you cross each state's economic nexus threshold (or have physical presence there). Michigan's published threshold is $100,000 or 200 transactions, and Arizona's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-31.

When did economic nexus take effect in Michigan and Arizona?

Michigan's economic nexus rule took effect on 2018-10-01, and Arizona's took effect on 2021-01-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Michigan vs Arizona Sales Tax Nexus — Comparison 2026

Updated 2026-05-31

Compare economic nexus thresholds, state and local rates, and filing rules in Michigan and Arizona.

Metric	Michigan	Arizona
Economic nexus threshold	$100,000	$100,000
Transaction threshold	200	None
State rate	6.00%	5.60%
Avg. local rate	n/a	2.92%
Combined state + local	6.00%	8.52%
Marketplace facilitator	Yes	Yes
Effective since	2018-10-01	2021-01-01

Which state is easier for sellers?

For low-revenue sellers: nexus triggers first in both states because of its threshold. If you cross that first, you register there first.

On rate: Michigan is friendlier for customers with a combined state + local rate of 6.00% vs 8.52%.

Michigan also adds a 200-transaction trigger that Arizona doesn't have.

Michigan — nexus note

Economic nexus in Michigan triggers when remote sellers exceed $100,000 in gross sales OR 200 or more separate transactions into Michigan in the current or preceding calendar year — whichever is met first.

Arizona — nexus note

Economic nexus in Arizona triggers at $100,000 in gross sales delivered into Arizona in the current or prior calendar year. No transaction count threshold.

What to do next

Use the nexus calculator to check exactly which of Michigan and Arizona you've already triggered. Then read each state's full guide:

Michigan overview →Arizona overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, Michigan or Arizona?: Both Michigan and Arizona publish the same economic nexus dollar threshold of $100,000, so a remote seller would reach each state's published threshold at the same level of in-state sales. These are the thresholds published by each state's tax authority as of 2026-05-31; confirm against the official source before registering.
Do both Michigan and Arizona have marketplace facilitator laws?: Yes. Both Michigan and Arizona have marketplace facilitator laws, so marketplaces such as Amazon, Etsy, and eBay collect and remit sales tax on the sales they facilitate in both states. Direct-to-consumer sales you make outside a marketplace remain your own responsibility once you cross each state's threshold. Verified 2026-05-31.
Which has the lower sales tax rate, Michigan or Arizona?: Michigan has the lower combined state and local sales tax rate at 6.00%, compared with 8.52% in Arizona. These are the statewide base rate plus the average local rate; the exact rate depends on the customer's delivery address. As of 2026-05-31.
Do I need to register for sales tax in both Michigan and Arizona?: It depends on where you cross each state's economic nexus threshold (or have physical presence there). Michigan's published threshold is $100,000 or 200 transactions, and Arizona's is $100,000. You generally register in a state only once you cross its threshold, so you may have an obligation in one, both, or neither. Run the nexus calculator with your actual sales and confirm with each state's official source. Thresholds as of 2026-05-31.
When did economic nexus take effect in Michigan and Arizona?: Michigan's economic nexus rule took effect on 2018-10-01, and Arizona's took effect on 2021-01-01. Both stem from the 2018 South Dakota v. Wayfair Supreme Court decision, which let states require remote sellers to collect once an economic threshold is met.

Sources

date_retrieved: Michigan 2026-05-31 · Arizona 2026-05-27

Michigan: https://www.michigan.gov/taxes
Michigan: https://www.michigan.gov/taxes/business-taxes/sales-use-tax/remote-sellers
Michigan: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Michigan: https://taxfoundation.org/data/all/state/sales-tax-rates/
Arizona: https://azdor.gov/
Arizona: https://azdor.gov/business/transaction-privilege-tax/out-state-sellers
Arizona: https://www.salestaxinstitute.com/resources/economic-nexus-state-guide
Arizona: https://taxfoundation.org/data/all/state/sales-tax-rates/