Michigan Car Sales Tax Calculator
Michigan charges a state vehicle sales/use tax of 6% on a car purchase. On a $20,000 vehicle that is about $1,200.00 in state tax before any local add-ons. Enter your own price below — and your trade-in, if Michigan allows a trade-in credit — to estimate what you'll owe.
Quick answer: Michigan’s state vehicle sales/use tax rate is 6%. Local (county/city) taxes may apply on top.
Estimate your Michigan car sales tax
Enter the vehicle price. If Michigan gives a trade-in tax credit, add your trade-in value to reduce the taxable amount.
State rate only. Many Michigan counties and cities add a local sales tax on top, so your actual total may be higher. Trade-in credit rules vary — confirm eligibility with the official source below.
How Michigan taxes a car purchase
| State vehicle sales/use tax rate | 6% |
| Taxable amount | Price − trade-in credit (where allowed) |
| Local / county tax | Varies by jurisdiction — added on top of the state rate |
Michigan title fee is $15. State sales tax on vehicles is 6%. Annual registration is calculated from MSRP for newer passenger vehicles and may be discounted by age. Plate transfer fee is $10; standard plate fee is $5.
What this estimate excludes
- Local and district taxes. County, city, and transit taxes are added on top of the Michigan state rate.
- Title, registration, and plate fees. These are separate from sales tax — use the Michigan registration and title-transfer calculators for those.
- Dealer documentation fees. A dealer “doc fee” is charged on top and is often itself taxable.
- Exemptions. Gifts, inheritance, and certain family transfers may be exempt — confirm with Michigan Secretary of State — Vehicle Services.
Official Michigan source
↗Michigan Secretary of State — Vehicle Serviceswww.michigan.govRelated Michigan tools & guides
Frequently asked questions
How much is sales tax on a car in Michigan?
The Michigan state vehicle sales/use tax rate is 6%. Multiply it by the taxable purchase price (usually the price minus any trade-in credit). Counties and cities may add a local sales tax on top, so confirm your combined rate with Michigan Secretary of State — Vehicle Services.
Do I pay sales tax when buying a used car from a private seller in Michigan?
In most states, sales or use tax on a private-party vehicle purchase is collected when you title and register the car, not at the point of sale. The rate is generally the same as a dealer sale. Confirm the private-sale rules with Michigan Secretary of State — Vehicle Services.
Does Michigan give a sales tax credit for a trade-in?
Most states tax only the difference between the vehicle price and your trade-in value, which lowers the tax you owe. A handful of states tax the full price with no trade-in credit. Verify Michigan's treatment before you rely on the estimate above.
Are there local or county car sales taxes in Michigan?
Often, yes. The rate shown here is the Michigan state rate only; many counties, cities, and transit districts add a local sales tax on vehicle purchases, so your combined rate can be higher. Michigan Secretary of State — Vehicle Services publishes the official combined rates.
Last reviewed: 2026-01-01 · Reviewed by the Car Paperwork editorial team · Based on official Michigan Secretary of State — Vehicle Services sources · Independent resource · Not legal advice