Michigan Sales Tax Nexus: Economic Nexus Threshold (2026)
Michigan's economic nexus threshold for remote sellers is $100,000 in sales or 200 transactions (meeting either test is enough), measured over the previous calendar year. Marketplace sales count toward Michigan's threshold. Inventory or another physical presence in Michigan generally creates nexus regardless of sales. The state rate is 6%.
Michigan sales tax nexus: key facts
| Sales threshold | $100,000 |
|---|---|
| Transaction threshold | 200 transactions |
| Test | Sales OR transactions |
| What counts | Gross sales into Michigan, including taxable, non-taxable and exempt sales of all product types (TPP, digital goods, services), exceeding $100,000; or 200 or more separate transactions (taxable and non-taxable) |
| Measurement period | Previous calendar year |
| Marketplace sales count toward your threshold? | Yes, counted |
| Marketplace facilitator law | Yes: marketplaces generally collect on the sales they facilitate |
| State rate | 6% |
| Local sales taxes | No |
| Current threshold effective | October 1, 2018 |
| Recent change | None found in our research |
| Registration | Official registration page |
| Last researched | September 23, 2026 |
The state rate is the statewide state-level rate only. Local and district rates are extra where they apply.
Quick check: do you have nexus in Michigan?
Enter your Michigan sales to see whether you may have nexus.
Selling into several states? Use the full Sales Tax Nexus Checker. Your figures stay in your browser.
What to do after crossing the Michigan threshold
When it starts:
- Look-back is previous calendar year only: a seller that exceeds the threshold during a year registers and begins collecting on January 1 of the following year.
- Confirm the numbers. Check your Michigan sales against the measure and period in the key facts above.
- Register before you collect. Use Michigan's official registration page. Collecting a state's tax without a registration is generally not allowed.
- Collect and file. Charge Michigan sales tax on taxable sales from the start date, and file returns on the schedule the state assigns. Marketplaces generally collect on the sales they facilitate, so you usually collect on your direct sales.
- Look back. If you crossed the threshold in an earlier period and did not register, get advice on those periods. Many states have voluntary disclosure programs that may limit penalties.
Physical presence and inventory in Michigan
RAB 2021-21 recognizes physical, representational/attributional and click-through nexus in addition to economic nexus; inventory stored in Michigan (including FBA/3PL) generally creates physical nexus. Economic nexus was codified by Public Acts 145 and 146 of 2019 (MCL 205.52c and 205.95b).
Marketplace sellers in Michigan
Do marketplace sales count toward your own threshold? Yes, counted.
Treasury Marketplace FAQ: 'The economic nexus threshold for marketplace sellers includes all gross sales directly to, or transactions with, Michigan customers and all gross sales to, or transactions with, Michigan customers that are completed through a marketplace facilitator.' A marketplace seller has no filing obligation if all of its sales go through marketplace facilitators that have Michigan nexus. Marketplace facilitator collection has been required since January 1, 2020.
Other things to know about Michigan
- Once nexus is established, the seller remains liable until a full calendar year passes in which it does not meet either threshold.
- Full SSUTA member; SST registrants file monthly Simplified Electronic Returns with no annual reconciliation, while direct registrants are assigned a filing frequency and file an annual return.
- No local sales taxes; single 6% statewide rate. Pure wholesalers that meet the threshold have nexus but need not register if they make no taxable sales.
Frequently asked questions
What is the Michigan economic nexus threshold?
$100,000 in sales or 200 transactions (meeting either test is enough), measured over the previous calendar year. What counts: Gross sales into Michigan, including taxable, non-taxable and exempt sales of all product types (TPP, digital goods, services), exceeding $100,000; or 200 or more separate transactions (taxable and non-taxable).
Do marketplace sales count toward the Michigan threshold?
Yes, counted. Treasury Marketplace FAQ: 'The economic nexus threshold for marketplace sellers includes all gross sales directly to, or transactions with, Michigan customers and all gross sales to, or transactions with, Michigan customers that are completed through a marketplace facilitator.' A marketplace seller has no filing obligation if all of its sales go through marketplace facilitators that have Michigan nexus. Marketplace facilitator collection has been required since January 1, 2020.
Does FBA or 3PL inventory in Michigan create nexus?
RAB 2021-21 recognizes physical, representational/attributional and click-through nexus in addition to economic nexus; inventory stored in Michigan (including FBA/3PL) generally creates physical nexus. Economic nexus was codified by Public Acts 145 and 146 of 2019 (MCL 205.52c and 205.95b).
When do I have to start collecting Michigan sales tax?
Look-back is previous calendar year only: a seller that exceeds the threshold during a year registers and begins collecting on January 1 of the following year.
Registration: official registration page.
Does Michigan have a transaction-count test?
Yes: 200 transactions. Meeting either the dollar or the transaction test is enough.
Crossed the Michigan threshold, or not sure? A professional can confirm it and handle registration.
Nexus Study + Registration + Cleanup
Fixed price, quoted before any work starts
- State-by-state review of your sales and inventory locations
- Registration in states where you have nexus
- Plan for any past-due periods (including voluntary disclosure where appropriate)
- Ongoing sales tax filing option
Disclaimer: This page provides general information for educational purposes and is not tax, legal or accounting advice. State rules change, and whether you have nexus can depend on facts not covered here. Confirm with Michigan's official guidance or a qualified professional before acting. RAHA Financials is not affiliated with any state tax agency.
Sources
- Primary official source: https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/remote-seller-faq
- michigan.gov: https://www.michigan.gov/taxes/business-taxes/sales-use-tax/information/marketplace-facilitator-seller-faqs
- michigan.gov: https://www.michigan.gov/taxes/rep-legal/rab/2021-revenue-administrative-bulletins/revenue-administrative-bulletin-2021-21
