Nexus by State

Pennsylvania vs Michigan Sales Tax Nexus — Comparison 2026

Updated

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

MetricPennsylvaniaMichigan
Economic nexus threshold$100,000$100,000
Transaction thresholdNone200
State rate6.00%6.00%
Avg. local rate0.34%n/a
Combined state + local6.34%6.00%
Marketplace facilitatorYesYes
Effective since2019-07-012018-10-01

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 6.34%.

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

Pennsylvania — nexus note

Economic nexus applies at $100,000 in gross sales into Pennsylvania in the previous twelve months. Local rates apply in Philadelphia (+2%) and Allegheny County (+1%).

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 Pennsylvania and Michigan you've already triggered. Then read each state's full guide:

Pennsylvania overview →Michigan overview →