NSNexus by State

Michigan E-commerce Sales Tax Nexus Guide — 2026

Updated

If your E-commerce 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.

E-commerce sales tax basics in Michigan

For a direct-to-consumer store (Shopify, WooCommerce, BigCommerce, or custom) shipping to Michigan buyers, the economic nexus trigger is $100,000 or 200 transactions in MI-destination revenue (effective 2018-10-01). Crossing that bar obligates registration, collection, and periodic filing.

Once registered, charge 6.00% state tax on most tangible personal property. Digital products, subscriptions, and professional services have different treatment — see the Michigan SaaS page if you sell software or digital goods.

Registration + collection checklist

  1. Register with the Michigan Department of Revenue for a sales tax permit.
  2. Configure your cart platform to collect tax at the destination rate. Enable MI in your tax settings.
  3. Charge the combined state + local rate at the customer's delivery address (most states source to ship-to, not ship-from).
  4. File returns on the cadence your DOR assigns (monthly, quarterly, or annually).
  5. Track your Michigan-sourced revenue monthly so you know when you're approaching or below threshold for the next period.

Common mistakes e-commerce sellers make in Michigan

  • Using origin-based rates (your HQ state's rate) instead of destination rates. Michigan sources to the buyer's ship-to address — charge the MI rate, not your home state's.
  • Counting marketplace sales toward the Michigan threshold. Amazon, Etsy, and eBay sales are usually excluded in Michigan; check the specific rule before adding them to your nexus-tracking spreadsheet.
  • Waiting until year-end to register. If you cross $100,000 mid-year, you must begin collecting on sales made after the threshold-crossing date — back-tax exposure grows until you register.
  • Forgetting to file zero returns once registered. Missing filings trigger penalties even when you owe no tax.

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

What is Michigan's e-commerce sales tax in 2026?
Michigan's 2026 e-commerce sales tax: out-of-state sellers collect once they cross $100,000 in gross sales OR 200 transactions in Michigan-destination revenue. Charge the 6.00% state rate plus any applicable local rate at the buyer's ship-to address.
Do I collect sales tax on every Michigan order?
You collect Michigan sales tax once you cross the economic nexus threshold ($100,000 in gross sales OR 200 transactions). Below threshold, you don't need to collect unless you have physical nexus (office, employees, inventory in Michigan).
What rate do I charge for Michigan e-commerce sales?
6.00% state rate, plus any applicable local rate at the customer's ship-to address. Most e-commerce platforms (Shopify, WooCommerce) can apply destination rates automatically when you enable MI in tax settings.
Do I need to collect sales tax on shipping in Michigan?
It depends on state-specific rules. Many states tax shipping when the product is taxable; some states exempt shipping if separately stated. Check Michigan's specific policy or use a tax service that encodes the rule.

Sources

date_retrieved: 2026-05-31