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Michigan car sales tax and fees

Michigan charges 6% state sales tax on a vehicle purchase. No county or city tax is added on a vehicle purchase.

State vehicle tax
6%
Local tax
None
Trade-in lowers tax
Yes
Doc fee cap
$280
Title fee
$15.00
EV fee
$267

How Michigan taxes a car purchase

  • State rate: 6% of the price.
  • No county or city tax is added on a vehicle purchase.
  • Michigan taxes the price minus your trade-in, so a trade-in lowers the tax (on up to $12,000 of trade-in value).

Fees

  • Title: $15.00, plus $5.00 for plates.
  • Registration: MCL 257.801(1)(p): stepped by manufacturer list price, $36 up to $6,000 rising to $178 at $30,000 then $6 per additional $1,000, which 0.6% with a $36 floor reproduces within a few dollars. Statute keys on list price (MSRP), not sale price.
  • Dealer documentation fees are capped at $280. The doc fee is taxed.
  • Electric vehicles pay an extra $267, plug-in hybrids $113.

Drafted from the state's tax table and its fee schedule. Not every figure has been checked by hand yet, so confirm with the dealer or the DMV before you sign.

Worked example

Out-the-door

Estimate

A $40,000 gas car (destination included, 3,500 lb) bought in Detroit, ZIP 48201, no trade-in

Vehicle price$40,000.00
Documentation fee (typical here)$280.00
Title$15.00
Plate$5.00
Registration$241.68
Sales tax (6% state)$2,416.80
Total$42,958.48

What this estimate rests on

1 item is missing or approximate, so the real figure will differ.

  • Approximate

    No documentation fee was entered, so the typical MI dealer figure of $280 is used (the state caps it at $280). Enter the fee on your quote to replace it.

  • Unchecked

    Fee rules for MI have not been checked against the state's own notice.

  • Unchecked

    This rate has not been checked against the taxing authority’s published table.

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Buying in Michigan

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Common questions

What is the sales tax on a car in Michigan?

Michigan charges 6% state sales tax on a vehicle purchase. No county or city tax is added on a vehicle purchase.

Does Michigan tax the trade-in?

Michigan taxes the price minus your trade-in, so a trade-in lowers the tax (on up to $12,000 of trade-in value).

What is the out-the-door price of a $40,000 car in Michigan?

About $42,958 in Detroit, including $2,417 of sales tax and state title and registration fees.

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