Michigan car sales tax calculator
The sales tax in Michigan is 6.00% of the taxable amount.
legislature.mi.gov · checked Oct 3, 2026
By Mr. Voltage · Data checked Oct 11, 2026 · Page changed Oct 12, 2026
Where will you register the car?
Michigan
Example quotes. Pick your place and type yours. Example: three quotes on one car in Harris County, Michigan. Pick your own place and type your quotes.
Your deals at a glance
| Deal | Payment | All-in |
|---|---|---|
| $582.02a month | $39,921.16+$652.08 more than Deal C | |
| $525.58a month | $42,841.57+$3,572.49 more than Deal C | |
| $571.15a month | $39,269.08Lowest |
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Your numbers stay in this browser.
$582.02 a month · 60 payments
All-in $39,921.16
$525.58 a month · 72 payments
All-in $42,841.57
$571.15 a month · 60 payments
All-in $39,269.08Lowest
Out-the-door $35,177.80
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,914.50
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,760.80
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and plug-in hybrid cars pay a yearly fee
Sticker price (MSRP)
The research’s test car: the 2026 Tucson SEL FWD’s base price without the $1,400 destination. The Secretary of State’s published base list price is what counts
Birth month
Optional. The first registration runs to your birthday, so this works out its months. Without it, a full year shows. It stays on this device.
Financed through the dealer
Financed through the dealer. Michigan’s doc-fee limit covers only dealer installment contracts, not cash deals or loans from your own bank
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and plug-in hybrid cars pay a yearly fee
Sticker price (MSRP)
The research’s test car: the 2026 Tucson SEL FWD’s base price without the $1,400 destination. The Secretary of State’s published base list price is what counts
Birth month
Optional. The first registration runs to your birthday, so this works out its months. Without it, a full year shows. It stays on this device.
Financed through the dealer
Financed through the dealer. Michigan’s doc-fee limit covers only dealer installment contracts, not cash deals or loans from your own bank
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and plug-in hybrid cars pay a yearly fee
Sticker price (MSRP)
The research’s test car: the 2026 Tucson SEL FWD’s base price without the $1,400 destination. The Secretary of State’s published base list price is what counts
Birth month
Optional. The first registration runs to your birthday, so this works out its months. Without it, a full year shows. It stays on this device.
Financed through the dealer
Financed through the dealer. Michigan’s doc-fee limit covers only dealer installment contracts, not cash deals or loans from your own bank
$280.00: what Michigan allows here, the lesser of two limits (“shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less”).
Michigan calls it a documentary preparation fee.
legislature.mi.gov · checked Oct 3, 2026
$280.00: what Michigan allows here, the lesser of two limits (“shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less”).
Michigan calls it a documentary preparation fee.
legislature.mi.gov · checked Oct 3, 2026
$280.00: what Michigan allows here, the lesser of two limits (“shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less”).
Michigan calls it a documentary preparation fee.
legislature.mi.gov · checked Oct 3, 2026
Assumes optional add-ons sold with the car, such as etching or nitrogen, are taxed like the car. Michigan hasn’t said which side of its goods-or-services line each one falls on. If they are untaxed services, the tax is 6% of their price less.
- No city, county or transit tax on a car in Michigan.
michigan.gov · checked Oct 3, 2026
- No yearly property tax on a car: the registration tax replaces it.
legislature.mi.gov · checked Oct 3, 2026
- No safety or emissions inspection, so no inspection fee.
legislature.mi.gov · checked Oct 3, 2026
- No minimum or maximum tax on a car.
legislature.mi.gov · checked Oct 3, 2026
- No city, county or transit tax on a car in Michigan.
michigan.gov · checked Oct 3, 2026
- No yearly property tax on a car: the registration tax replaces it.
legislature.mi.gov · checked Oct 3, 2026
- No safety or emissions inspection, so no inspection fee.
legislature.mi.gov · checked Oct 3, 2026
- No minimum or maximum tax on a car.
legislature.mi.gov · checked Oct 3, 2026
- No city, county or transit tax on a car in Michigan.
michigan.gov · checked Oct 3, 2026
- No yearly property tax on a car: the registration tax replaces it.
legislature.mi.gov · checked Oct 3, 2026
- No safety or emissions inspection, so no inspection fee.
legislature.mi.gov · checked Oct 3, 2026
- No minimum or maximum tax on a car.
legislature.mi.gov · checked Oct 3, 2026
Your $5,000.00 down covers the $2,477.80 in tax, fees and the doc fee first; $2,522.20 goes toward the price.
Your $5,000.00 down covers the $2,519.50 in tax, fees and the doc fee first; $2,480.50 goes toward the price.
Your $5,000.00 down covers the $2,510.80 in tax, fees and the doc fee first; $2,489.20 goes toward the price.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
60 payments, last $581.98
72 payments, last $525.39
60 payments, last $571.23
cash down plus every payment
+$652.08 more all-in than Deal C
cash down plus every payment
+$3,572.49 more all-in than Deal C
cash down plus every payment
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
3 charges this total leaves out
3 charges this total leaves out
3 charges this total leaves out
What’s different in Michigan
Michigan calls it the sales tax.
michigan.gov · checked Oct 3, 2026
A trade-in comes off the amount taxed at its full value, so only the difference is taxed. The credit stops at $12,000.00.
legislature.mi.gov · checked Oct 3, 2026
Negative equity rolled into the new loan is not taxed.
michigan.gov · checked Oct 3, 2026
Michigan’s law makes the documentary preparation fee the smaller of a set amount and a share of the price (its words: “shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less”).
legislature.mi.gov · checked Oct 3, 2026
A maker’s rebate does not lower the tax, even when it is given at the time of sale. A discount offered by the dealer does.
michigan.gov · checked Oct 3, 2026
Worked examples
Each line below is worked by the same engine as the calculator, on the day this page was built (Nov 11, 2026).
A new car with a trade-in and negative equity
A new car at $32,700.00, with a trade-in allowed at $10,000.00 and $13,000.00 still owed, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Michigan’s example market.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Trade-in allowance | $10,000.00 |
| Still owed on the trade-in | $13,000.00 |
| Equity (negative if you owe more than it is worth) | −$3,000.00 |
| Taxable amount michigan.gov · checked Oct 3, 2026 | $22,980.00 |
| Michigan sales tax legislature.mi.gov · checked Oct 3, 2026 | $1,378.80 |
| Doc fee legislature.mi.gov · checked Oct 3, 2026 | $280.00 |
| Title fee michigan.gov · checked Oct 3, 2026 | $15.00 |
| Lien recording legislature.mi.gov · checked Oct 11, 2026 | $1.00 |
| Registration tax (by the car’s base list price), for a full year legislature.mi.gov · checked Oct 3, 2026 | $190.00 |
| Registration surcharges legislature.mi.gov · checked Oct 3, 2026 | $8.00 |
| Standard plate michigan.gov · checked Oct 3, 2026 | $5.00 |
| Out-the-door price | $34,577.80 |
| Cash down | $5,000.00 |
| Amount financed | $32,577.80 |
| Monthly payment | $628.31 |
| Interest over the loan | $5,120.50 |
| Total paid, interest included | $42,698.30 |
A used car from a dealer
A used car, model year 2022, at $21,500.00, $5,000.00 down, financed at 5.90% for 60 months, bought from a dealer and registered in Michigan’s example market.
| Line | Amount |
|---|---|
| Price | $21,500.00 |
| Taxable amount michigan.gov · checked Oct 3, 2026 | $21,780.00 |
| Michigan sales tax legislature.mi.gov · checked Oct 3, 2026 | $1,306.80 |
| Doc fee legislature.mi.gov · checked Oct 3, 2026 | $280.00 |
| Title fee michigan.gov · checked Oct 3, 2026 | $15.00 |
| Lien recording legislature.mi.gov · checked Oct 11, 2026 | $1.00 |
| Registration surcharges legislature.mi.gov · checked Oct 3, 2026 | $8.00 |
| Standard plate michigan.gov · checked Oct 3, 2026 | $5.00 |
| Registration tax (by the car’s base list price and age): needs the car’s sticker price (MSRP), which this example doesn’t give | Not included |
| Out-the-door price | $23,115.80 |
| Cash down | $5,000.00 |
| Amount financed | $18,115.80 |
| Monthly payment | $349.39 |
| Interest over the loan | $2,847.39 |
| Total paid, interest included | $25,963.19 |
The rules in Michigan
| Rule | What it says |
|---|---|
| Name of the tax | sales tax michigan.gov · checked Oct 3, 2026 |
| Michigan sales tax | 6.00% of the taxable amount legislature.mi.gov · checked Oct 3, 2026 |
| What is taxed | Taxed: the vehicle price, the doc fee, other dealer fees on the order, accessories fitted before delivery, protection packages and loose items sold with the car. Not taxed: service contracts, prepaid maintenance, GAP and government fees. michigan.gov · checked Oct 3, 2026 |
| Trade-in | A trade-in comes off the amount taxed at its full value, so only the difference is taxed. The credit stops at $12,000.00. legislature.mi.gov · checked Oct 3, 2026 |
| Maker’s rebate | A maker’s rebate does not lower the amount taxed. michigan.gov · checked Oct 3, 2026 |
| Dealer discount | A dealer discount lowers the amount taxed. michigan.gov · checked Oct 3, 2026 |
| Negative equity | Negative equity rolled into the loan is not taxed. michigan.gov · checked Oct 3, 2026 |
| Doc fee | The law makes the documentary preparation fee the smaller of a set amount and a share of the price (its words: “shall not exceed 5% of the cash price of the motor vehicle or $280.00, whichever is less”). legislature.mi.gov · checked Oct 3, 2026 |
| Title fee | $15.00. That point is not confirmed. michigan.gov · checked Oct 3, 2026 |
| Registration tax (by the car’s base list price) | worked from the rule a year legislature.mi.gov · checked Oct 3, 2026 |
| Registration tax (by the car’s base list price and age) | worked from the rule a year legislature.mi.gov · checked Oct 3, 2026 |
| Registration surcharges | $8.00 a year legislature.mi.gov · checked Oct 3, 2026 |
| Private-party purchase | 6% use tax paid by the buyer at the Secretary of State, on the full purchase price or fair market value, whichever is greater. No trade-in credit. Transfers to family members are exempt. michigan.gov · checked Oct 3, 2026 |
| Bought out of state | Credit for sales or use tax paid to another state if that state gives Michigan a like credit; if the other state’s tax was less, the buyer pays the difference. legislature.mi.gov · checked Oct 3, 2026 |
| New resident | No use tax if the vehicle was bought by a nonresident and brought in more than 90 days after purchase. Brought in sooner, it is presumed taxable, with credit for tax paid elsewhere. A new resident still pays the $15 title fee and the list-price registration. legislature.mi.gov · checked Oct 3, 2026 |
| Electric and hybrid cars | Electric $267 a year and plug-in hybrid $113 a year (2026), re-indexed with the fuel tax each January 1. Ordinary hybrids that do not plug in pay no extra fee. michigan.gov · checked Oct 3, 2026 |
| Finance rate ceiling | 25% a year on installment sale contracts by licensed sellers. The law applies no vehicle-age tiers. legislature.mi.gov · checked Oct 3, 2026 |
| Regional transit tax | Michigan law allows a regional transit registration tax of up to $1.20 for each $1,000 of list price, but it is not in effect: it needs voter approval. legislature.mi.gov · checked Oct 3, 2026 |
What has changed
· What is taxed: a new version takes effect.
legislature.mi.gov · checked Oct 3, 2026
· What is taxed: a new version takes effect.
legislature.mi.gov · checked Oct 3, 2026
· What is taxed: a new version takes effect.
legislature.mi.gov · checked Oct 3, 2026
· Watching: A regional transit registration tax in Southeast Michigan, up to $1.20 for each $1,000 or part of the list price a year (about $38 on the test car), Only after a public vote at a November election; none is in force. SB 695, which changes the election wording, passed the Senate in March 2026.
legislature.mi.gov · checked Oct 3, 2026
· The rules on this page start here. Nothing earlier is loaded.
Questions people ask
How much does a trade-in lower Michigan sales tax?
By the lesser of the trade-in’s agreed value or a yearly limit. The limit is $12,000 for sales in 2026 and $13,000 for sales in 2027. It is $14,000 in 2028, and there is no limit from 2029 on. The limit rises by $1,000 each January 1 until then. The credit applies only to a purchase from a dealer, only to one trade-in per purchase, and not to leases, and the trade-in’s agreed value must be separately stated.
michigan.gov · checked Oct 3, 2026
legislature.mi.gov · checked Oct 12, 2026
michigan.gov · checked Oct 3, 2026
Is the Michigan dealer doc fee capped?
Only on financed deals. Michigan’s limit is part of its law on installment sale contracts, so it applies when the dealer finances the purchase. The cap is the lesser of 5% of the cash price or $280. The dollar amount is adjusted every 2 years by the Consumer Price Index, and the next adjustment is due in January 2027. The fee must be in the cash price on the contract and may not be described as required by the state. We found no rule that the dealer post a sign. For a cash purchase or a loan from your own bank, the state’s guidance says the law neither permits nor prohibits a doc fee, so no cap applies. That guidance is from a 2007 bulletin. We found nothing that replaces it, but we have not confirmed it is still current, so treat the cash-deal part as not confirmed.
michigan.gov · checked Oct 11, 2026
legislature.mi.gov · checked Oct 3, 2026
michigan.gov · checked Oct 3, 2026
michigan.gov · checked Oct 3, 2026
Is the doc fee taxed in Michigan?
Yes. The state’s dealer manual says the documentary preparation fee is taxable, and it goes on line 2 of the RD-108 title application with the other non-optional dealer charges. The optional $34 electronic filing fee, if the buyer agrees to it, is also part of the taxable price. Title, plate and registration fees are not.
michigan.gov · checked Oct 3, 2026
michigan.gov · checked Oct 3, 2026
How is the Michigan registration fee worked out?
By the car’s list price, not its weight. List price means the manufacturer’s suggested base list price as published by the Secretary of State, so destination and options are left out. For a 1984 or later car the fee starts at $36 up to $6,000 and rises $6 for each $1,000 step to $178 at $29,000.01 to $30,000. Over $30,000 it rises another $6 for each $1,000 or part of $1,000. Later years cost less: the second registration is 90% of the first, the third 90% of the second, and so on. Until October 1, 2027, an extra $8 in surcharges is added to every list-price registration. The first registration runs to your birthday, from 6 to 18 months, and its fee is prorated by the month.
legislature.mi.gov · checked Oct 3, 2026
legislature.mi.gov · checked Oct 3, 2026
Do rebates lower Michigan sales tax on a car?
A maker’s rebate does not. The state’s dealer manual says tax is due on rebates from manufacturers, even when the credit is given at the time of sale. A discount offered by the dealer does lower the tax, because it is taken off before the tax is figured. A 2021 bill to exempt manufacturer rebates passed both chambers in different versions and died in 2022, and the law has no rebate exclusion.
michigan.gov · checked Oct 3, 2026
legislature.mi.gov · checked Oct 3, 2026
I bought a car out of state. What do I pay in Michigan?
A Michigan resident who titles a car bought elsewhere pays the 6% use tax to the Secretary of State before the title is transferred. Credit is given for the sales or use tax paid to the other state if that state gives Michigan a like credit. If the other state’s tax was less than Michigan’s, you pay the difference. The buyer has 15 days from the sale to transfer the title or pays a $15 late fee. Michigan’s capped trade-in credit applies to purchases from a dealer. We have not confirmed whether the Secretary of State applies the cap to an out-of-state dealer’s trade-in allowance.
legislature.mi.gov · checked Oct 3, 2026
legislature.mi.gov · checked Oct 3, 2026