State guide · MI
Michigan sales tax and property tax
A flat 6% sales tax written around a constitutional food exemption, and a property tax where two identical houses on the same street can carry very different bills.
Facts read on official Michigan pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 6%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $2,988
- Effective property rate
- 1.18% · #13 of 51
Michigan's property tax is built on taxable value, not market value: under Proposal A of 1994 the taxable value of a home can grow each year only by the State Tax Commission's inflation multiplier, 1.027 or 2.7% for 2026, until the property is sold, when it uncaps the following year and resets toward market. A long-time owner and a new buyer next door can therefore pay very different amounts. The Principal Residence Exemption removes up to 18 mills of school operating tax from a main home, and every property pays the 6-mill State Education Tax on the summer bill. Census data give a median bill of $2,988, rank 22 of 51, on a $254,200 home, 1.18% of value. The sales tax is simpler: 6% everywhere, since local units may not levy one, with residential electricity, gas and heating fuel at 4%. The constitution forbids taxing food except prepared food, and since February 2024 food sold with utensils counts as prepared. Prescription drugs are exempt, clothing is taxed, and Michigan has no holiday.
Total to pay
$106.00
Sales tax $6.00 · 6% of the price
| Price before tax | $100.00 |
| State tax · 6% | $6.00 |
| Local tax · not charged on this item | $0.00 |
| Total | $106.00 |
Rule applied: general state rate. How this is calculated.
Sales tax in Michigan
The single rate makes most Michigan purchases easy to check: a $1,500 couch carries $90.00 of tax in a city mall and in a lakeside general store alike, and the calculator above needs no local entry. Home energy is the one reduced rate. Residential electricity, natural gas and heating fuel pay 4%, so a $240 winter heating bill carries $9.60 instead of $14.40.
The food exemption sits in the constitution itself, article IX, section 8, which allows only prepared food to be taxed. What counts as prepared changed on February 13, 2024: besides food sold hot or mixed by the seller, food becomes taxable when the seller provides utensils such as forks, napkins or straws. A deli salad handed over with a fork is taxed; the same container taken from the cooler without one is not. Bread, bagels, muffins and cookies stay exempt when sold without utensils.
Use tax follows the same 6% rate on online and out-of-state purchases, with credit for tax paid to another state. Two exceptions are worth knowing. A car bought from a spouse, parent, sibling, child, grandparent, step-relative or in-law owes no use tax. And a resident who brings home an item bought for personal use elsewhere more than 360 days after buying it owes nothing; for nonresidents moving in, the window is 90 days.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 6% | no | 6% sales tax on retail sales of tangible personal property and 6% use tax; residential electricity, natural gas and home heating fuels are taxed at 4%. Michigan does not allow cities or local units to impose sales or use tax. |
| Groceries (food for home) | 0% | no | The Michigan Constitution (art. IX, sec. 8) prohibits taxing food for human consumption except prepared food. Prepared food includes food sold heated, food mixed by the seller, and (since February 13, 2024, PAs 141-142 of 2023) food sold with eating utensils provided by the seller. |
| Clothing | 6% | no | No clothing exemption; clothing is taxed at 6%. |
| Prescription drugs | 0% | no | |
| Residential electricity, natural gas and home heating fuel | 4% | Reduced rate for residential use. | |
| Hotel/motel accommodations and telecommunications | 6% | Subject to the 6% use tax. |
Local sales taxes
Michigan has no local sales taxes.
Sales tax holidays in 2026
Michigan has no sales tax holiday; none appears in Treasury guidance.
Worth knowing about Michigan sales tax
- Michigan bans local sales taxes, so the rate is 6% everywhere in the state. source
- Home heating (residential electricity, natural gas and heating fuel) is taxed at a reduced 4%. source
- Since February 13, 2024, food becomes taxable 'prepared food' when the seller provides eating utensils such as forks, napkins or straws. source
- Bakery items like bread, bagels, muffins and cookies stay tax-free when sold without utensils. source
- Buying a car from a spouse, parent, sibling, child, grandparent, step-relative or in-law is exempt from use tax. source
- A Michigan resident who brings home an item bought for personal use out of state more than 360 days after purchase owes no use tax. source
Property tax in Michigan
Local assessors in each city and township set two numbers for every parcel. Assessed value follows the market; taxable value, the one the millage applies to, is capped. For 2026 the State Tax Commission fixed the inflation rate multiplier at 1.027, and assessors may use no other figure. A home with a taxable value of $120,000 in 2025 can reach at most $123,240 in 2026, even if its market value jumped 10%. When ownership changes, the cap lifts the next year and taxable value moves up toward the assessed value, which is why buyers should look at the seller's taxable value with caution: their own bill may be much higher.
Millage is levied by cities, townships, villages, counties, school districts and special authorities. Two levies stand out. The Principal Residence Exemption frees a main home from up to 18 mills of local school operating tax; on that $120,000 taxable value it is worth up to $2,160 a year. File the PRE affidavit with your city or township assessor. The 6-mill State Education Tax applies to everyone and arrives with the summer tax, $720 on the same home.
On top of the bill, the Homestead Property Tax Credit on the Michigan income tax return helps homeowners and renters with household resources under an annual limit, and it can be claimed up to four years back. Deferment programs and veterans' exemptions also exist. As a rough benchmark, the statewide ratio of 1.18% applied to the median $254,200 home gives about $2,987, effective-rate rank 13 of 51.
Property tax on a home in Michigan
Typical bill per year
$2,987
| Per month | $249 |
| Median effective rate in Michigan | 1.18% |
| Median bill paid | $2,988 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Michigan |
|---|---|
| Median home value (owner-occupied) | $254,200 |
| Median real estate taxes paid | $2,988 |
| with a mortgage | $3,264 |
| without a mortgage | $2,685 |
| Effective rate (tax ÷ value) | 1.18% |
| Rank by effective rate (1 = highest) | 13 of 51 |
| Rank by median bill | 22 of 51 |
How the taxable value is set
Tax is levied on 'taxable value', not market value. Under Proposal A of 1994, taxable value is capped: each year it can rise only by the capped value formula using the State Tax Commission's inflation rate multiplier (1.027, i.e. 2.7%, for 2026), until the property is transferred, when it 'uncaps' the following year. Who levies the tax: local units (cities, townships, villages, counties, school districts, special authorities) plus the 6-mill State Education Tax collected with summer taxes; assessments by local assessors, equalized by counties and the State Tax Commission
Other property tax relief
- Homestead Property Tax Credit. Income tax credit for Michigan homeowners and renters (resident at least 6 months) with total household resources under an annually adjusted limit; homeowners' taxable value must also be under a limit. Can be claimed up to four years back. source
- Property tax deferment and veterans exemptions. Treasury lists programs allowing qualified owners to postpone payment of taxes or special assessments, and exemptions and credits for veterans and active-duty military. source
Worth knowing about Michigan property tax
- Michigan homes are taxed on a capped 'taxable value': for 2026 it could rise by no more than the 2.7% inflation rate multiplier (1.027), even if market value rose more. source
- When a home is sold, its taxable value 'uncaps' the next year, so a buyer can pay much more tax than the previous owner. source
- Local assessors are not allowed to use any multiplier other than 1.027 for 2026. source
- The Principal Residence Exemption removes up to 18 mills of school operating tax from a primary home. source
- Every property pays the 6-mill State Education Tax as part of the summer tax bill. source