What is Michigan's vehicle sales tax rate?

Michigan charges a 6% state sales tax on motor-vehicle purchases. On a 30,000 dollar car with no trade-in that is $1,800.00 in tax.

Does a trade-in lower the tax in Michigan?

Yes. Michigan applies the trade-in credit, so tax is charged on the price minus the trade-in allowance. Trading in a 5,000 dollar car on a 30,000 dollar purchase makes only 25,000 dollars taxable.

Is this the full out-the-door price?

No. This shows the 6% sales tax plus the net price. Title, registration, plate, and any local or county add-on taxes are separate and paid at the DMV.

Does the 6% rate include local taxes?

This calculator uses Michigan's base 6% rate. Some localities add their own vehicle tax on top, so confirm your county or city rate with the Michigan revenue or motor-vehicle department.

Michigan Vehicle Sales Tax Calculator

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Michigan charges a 6% state sales tax on vehicle purchases. The tax applies to the price after any trade-in allowance, because Michigan grants a trade-in tax credit. This tool estimates the sales tax owed and the total cost on a car bought in Michigan.

How it works

The taxable amount is the purchase price minus a qualifying trade-in, and the sales tax is that amount times Michigan’s 6% rate:

taxable   = max(0, purchase price - trade-in allowance)
sales tax = taxable * 0.06
total     = (purchase price - trade-in) + sales tax

The trade-in credit is real in Michigan: only the net difference between the new car’s price and the trade-in value is subject to the 6% tax.

Example

Buy a car for $30,000.00 and trade in a vehicle worth $5,000.00. The taxable amount is 30,000 - 5,000 = 25,000. At 6% the sales tax is 25,000 * 0.06 = $1,500.00, and the total you pay (net price plus tax) is $26,500.00.

Notes

This is an estimate only and is not financial or tax advice. It computes the 6% Michigan state sales tax on the purchase; title, registration, plate fees, and any local or county vehicle taxes are additional. Some Michigan localities levy an extra rate on top of the state base. Confirm the current rate and any local add-ons with the Michigan Department of Revenue or motor-vehicle agency before you budget.