How does Amazon FBA sales tax work in Michigan in 2026?

For 2026, Amazon collects and remits Michigan sales tax on your FBA and MFN orders as a marketplace facilitator. You are still responsible for any direct-to-consumer or Shopify sales into Michigan once those off-Amazon sales cross $100,000 in gross sales OR 200 transactions, and you may need Michigan registration if FBA inventory is stored in-state.

Does Amazon FBA inventory in Michigan create physical nexus?

Yes — Amazon storing your FBA inventory in a Michigan fulfillment center generally creates physical nexus regardless of sales volume. Pull your Amazon Inventory Event Detail report and look for MI fulfillment-center activity; if present, Michigan typically expects registration even when Amazon already collects sales tax on the facilitated orders.

Does Amazon collect Michigan sales tax on my FBA orders?

Yes — Amazon is a marketplace facilitator in Michigan and collects and remits Michigan sales tax on your FBA and MFN sales automatically.

Do I still need to register in Michigan as an FBA seller?

If Amazon stores your FBA inventory in Michigan, you may have physical nexus and need to register for informational filing. Check your Amazon inventory reports for MI distribution.

What about direct-to-consumer sales outside Amazon?

Those are your responsibility. If your Shopify store or website sells into Michigan above $100,000 in gross sales OR 200 transactions, you register independently.

Michigan Amazon FBA Sales Tax Guide — 2026

Updated 2026-05-31

If your Amazon business sells $100,000 or 200 transactions into Michigan in a calendar year, you have economic nexus and must register, collect, and remit Michigan sales tax.

Amazon FBA and sales tax in Michigan

Amazon is a marketplace facilitator in Michigan, which means Amazon calculates, collects, and remits sales tax on your FBA and MFN sales to Michigan buyers. You don't collect tax on those transactions yourself.

However, if Amazon stores your FBA inventory in a Michigan warehouse, you may have physical nexus — independent of the economic threshold. Some states will ask you to register anyway for information reporting.

When you still need to file in Michigan

You sell direct-to-consumer from your own store outside Amazon (Shopify, your website) into Michigan.
You have inventory stored in a Michigan FBA center (check your Amazon Seller Central inventory reports by state).
You sell wholesale, dropship, or run retail trade shows in Michigan.
State requires an information return even for marketplace-only sales (rules vary).

Common Amazon-seller mistakes in Michigan

Assuming marketplace facilitator status covers everything — if Amazon stored your inventory in Michigan, some states still want a registration on file.
Double-collecting when you sell the same SKU via Amazon AND your own Shopify store. Amazon collects; Shopify collects. Both remit. The buyer pays tax twice. Audit your setup.
Reporting marketplace-facilitated sales on your Michigan sales tax return as taxable when they should be reported as marketplace-facilitated (non-taxable for you). State form boxes vary.

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

Read the full Michigan overview for thresholds, filing frequency, marketplace facilitator rules, and registration links. Use the nexus calculator to check whether you have crossed the threshold. For background on the post-Wayfair economic nexus framework, see the pillar guide.

Frequently asked questions

How does Amazon FBA sales tax work in Michigan in 2026?: For 2026, Amazon collects and remits Michigan sales tax on your FBA and MFN orders as a marketplace facilitator. You are still responsible for any direct-to-consumer or Shopify sales into Michigan once those off-Amazon sales cross $100,000 in gross sales OR 200 transactions, and you may need Michigan registration if FBA inventory is stored in-state.
Does Amazon FBA inventory in Michigan create physical nexus?: Yes — Amazon storing your FBA inventory in a Michigan fulfillment center generally creates physical nexus regardless of sales volume. Pull your Amazon Inventory Event Detail report and look for MI fulfillment-center activity; if present, Michigan typically expects registration even when Amazon already collects sales tax on the facilitated orders.
Does Amazon collect Michigan sales tax on my FBA orders?: Yes — Amazon is a marketplace facilitator in Michigan and collects and remits Michigan sales tax on your FBA and MFN sales automatically.
Do I still need to register in Michigan as an FBA seller?: If Amazon stores your FBA inventory in Michigan, you may have physical nexus and need to register for informational filing. Check your Amazon inventory reports for MI distribution.
What about direct-to-consumer sales outside Amazon?: Those are your responsibility. If your Shopify store or website sells into Michigan above $100,000 in gross sales OR 200 transactions, you register independently.

Sources

date_retrieved: 2026-05-31