MI
Michigan Small Business Tax Guide
What Michigan Treasury says about sales tax, sales tax licenses and the corporate income tax, quoted with the date checked. An overview for small businesses, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Michigan before making filing or planning decisions.
Tax landscape for small businesses
Selling goods in Michigan means collecting sales tax. Michigan Treasury (Michigan, checked October 31, 2026) says: "Individuals or businesses that sell tangible personal property to the final consumer are required to remit a 6% sales tax on the total price of their taxable retail sales to the State of Michigan." A license comes first: "Entities must register for sales tax with Treasury to receive a sales tax license." It also says: "The sales tax license is valid January 1 through December 31."
On filing, Treasury (Michigan, checked October 31, 2026) says: "Returns and payments are due monthly, quarterly, or annually." and "All filers must submit an annual return by February 28, regardless of assigned filing frequency." For C corporations, Treasury says: "The CIT imposes a 6% corporate income tax on C corporations and taxpayers taxed as corporations federally." This page doesn't quote Michigan's individual income tax rate; check Treasury's individual income tax pages for the current figure.
Worked example (sample figures, not tax advice): a Michigan retailer bills $1,450.00 of taxable goods. Treasury's 6% (Michigan, checked October 31, 2026) gives $1,450.00 × 6% = $87.00, so the bill totals $1,537.00.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales tax | "6%" (Michigan Treasury (Michigan, checked October 31, 2026)) | On the total price of taxable retail sales, in Treasury's wording above. |
| Use tax | "Use tax of 6%" (Michigan Treasury (Michigan, checked October 31, 2026)) | Treasury says it "must be paid to the State of Michigan on the total price of all taxable items brought into Michigan or purchases through the internet, by mail or by phone from out-of-state retailers that do not collect and remit sales or use tax from their customers." |
| Corporate income tax | "6%" (Michigan Treasury (Michigan, checked October 31, 2026)) | Applies to "C corporations and taxpayers taxed as corporations federally". On nexus, Treasury's corporate income tax page (Michigan, checked November 1, 2026) says: "A person has nexus with Michigan if the person 1) is physically present in the state for more than one day, 2) actively solicits sales in Michigan and has gross receipts of $350,000 or more sourced to Michigan, or 3) has an ownership or beneficial interest in a flow-through entity (directly or indirectly through 1 or more flow-through entities) which has substantial nexus in this state." |
Filing requirements
This list isn't a complete checklist for your business.
Register and renew the license
Michigan Treasury (Michigan, checked October 31, 2026) says: "Entities must register for sales tax with Treasury to receive a sales tax license." and "The sales tax license is valid January 1 through December 31."
Annual return for every filer
Treasury (Michigan, checked October 31, 2026) says: "All filers must submit an annual return by February 28, regardless of assigned filing frequency."
Account number
On registration, Treasury (Michigan, checked October 31, 2026) says: "If the business has a federal Employer Identification Number (EIN), the EIN will also be the Treasury business account number."
Deductions and write-offs
Confirm with your state how it treats each item.
- Federal self-employment tax (IRS, In the US (federal), last reviewed or updated October 30, 2026): "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Federal health insurance deduction (same IRS page): "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- This page doesn't address whether Michigan follows federal deductions; Treasury or a tax professional can.
Practical tips
- Keep the license period in mind; Treasury (Michigan, checked October 31, 2026) says: "The sales tax license is valid January 1 through December 31."
- Put Treasury's annual return date, quoted above, in your calendar.
- If your business has an EIN, Treasury (Michigan, checked October 31, 2026) says "the EIN will also be the Treasury business account number."
- Make payment terms clear. Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay."
Frequently asked questions
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At a glance
| Tax | Treasury wording |
|---|---|
| Sales tax | "6%" (Michigan Treasury, checked October 31, 2026) |
| Use tax | "Use tax of 6%" (Michigan Treasury, checked October 31, 2026) |
| Corporate income tax | "6%" (Michigan Treasury, checked October 31, 2026) |
| Federal self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
Here you'll find only Michigan's general sales, use and corporate taxes as they affect small firms. City income taxes, payroll, special excise taxes and multi-state filing are outside it, and none of it is tax advice; Michigan Treasury or a tax professional can help with your case.