NSNexus by State

North Carolina vs Michigan Sales Tax Nexus — Comparison 2026

Updated

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

MetricNorth CarolinaMichigan
Economic nexus threshold$100,000$100,000
Transaction thresholdNone200
State rate4.75%6.00%
Avg. local rate2.25%n/a
Combined state + local7.00%6.00%
Marketplace facilitatorYesYes
Effective since2024-07-012018-10-01

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 7.00%.

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

North Carolina — nexus note

North Carolina sales tax nexus and economic nexus threshold: effective July 1, 2024, the remote-seller transaction threshold was repealed. A remote seller is engaged in business in North Carolina when gross sales sourced to North Carolina exceed $100,000 in the previous or current calendar year, including sales as a marketplace seller and marketplace-facilitated sales. NCDOR guidance says the threshold calculation includes taxable sales, sales for resale, exempt sales, nontaxable sales, and marketplace-facilitated sales. Marketplace facilitators use the same $100,000 sourced-gross-sales threshold, including all marketplace-facilitated sales for all marketplace sellers.

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.

What to do next

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

North Carolina overview →Michigan overview →

Frequently asked questions

Which state has the lower sales tax nexus threshold, North Carolina or Michigan?
Both North Carolina and Michigan 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 North Carolina and Michigan have marketplace facilitator laws?
Yes. Both North Carolina and Michigan 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, North Carolina or Michigan?
Michigan has the lower combined state and local sales tax rate at 6.00%, compared with 7.00% in North Carolina. 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 North Carolina and Michigan?
It depends on where you cross each state's economic nexus threshold (or have physical presence there). North Carolina's published threshold is $100,000, and Michigan's is $100,000 or 200 transactions. 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 North Carolina and Michigan?
North Carolina's economic nexus rule took effect on 2024-07-01, and Michigan's took effect on 2018-10-01. 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: North Carolina 2026-05-22 · Michigan 2026-05-31