Michigan Car Sales Tax Calculator
Michigan charges 6% sales tax (use tax on private sales) on a used car purchase, verified September 15, 2026. There is no local tax on top. Part of a trade-in is deducted before tax (capped at $12,000). Private-party sales are taxed too, paid when you title the car.
Figures verified September 15, 2026; sources linked per row. Re-checked quarterly, next due December 15, 2026.
Taxable amount: $25,000. Tax only; dealer doc fees, title and registration are separate, and some states tax the doc fee as part of the price. The local figure is an estimate from the state's published range unless you entered your own rate.
The Michigan numbers, with sources
Each figure below was checked on September 15, 2026 against the page linked in the source column, and the wording the state uses is quoted so you can confirm it yourself.
| Item | Michigan | Source |
|---|---|---|
| State rate (Sales tax (use tax on private sales)) | 6% | codes.findlaw.com(secondary, cites the statute)As published: “equal to 6% of the gross proceeds of the business” |
| Local tax range | None | codes.findlaw.com(secondary, cites the statute)As published: “equal to 6% of the gross proceeds of the business” |
| Trade-in credit | Partial, capped at $12,000 | codes.findlaw.com(secondary, cites the statute)As published: “Beginning January 1, 2019, subject to sub-subparagraphs (D) and (E), the lesser of the following: (I) $5,000.00. ... Beginning January 1, 2020 and each January 1 thereafter, the amount under sub-subparagraph (C)(I) is increased by an additional $1,000.00 each year.” |
| Dealer doc fee | Capped by formula (typically $287) | caredge.com(secondary, cites the statute)As published: “Michigan: $287. This report is based on 93,200 verified out-the-door (OTD) price quotes collected between July 2025 and September 2026.” |
| Title fee | $10 | codes.findlaw.com(secondary, cites the statute)As published: “An applicant for a certificate of title required by this act or an applicant for a duplicate of a certificate of title shall accompany the application with a fee of $10.00.” |
| Registration (by value) | $36+ | codes.findlaw.com(secondary, cites the statute)As published: “$ 0 --$ 6,000.00 ... $ 36.00 ... More than $30,000.00, the tax of $178.00 is increased by $6.00 for each $1,000.00 increment or fraction of a $1,000.00 increment over $30,000.00.” |
| Private-party sale taxed | Yes, paid when you title the car | codes.findlaw.com(secondary, cites the statute)As published: “The tax on a vehicle, ORV, snowmobile, and watercraft shall be collected by the secretary of state before the transfer of the vehicle, ORV, snowmobile, or watercraft registration.” |
- Local tax: No local sales tax in Michigan (Tax Foundation midyear 2026 table, fetched, lists a 0.00% max local rate).
- Trade-in: MCL 205.51 phases in the trade-in credit: the lesser of the trade-in value or $5,000 from Jan 1, 2019, with the dollar cap rising by $1,000 every January 1 from 2020, and no limit from the year the cap would exceed $14,000. That gives $12,000 for 2026 and unlimited from Jan 1, 2029. The 2026 figure is computed from the statute text; the Michigan Treasury page publishing the annual amount could not be fetched.
- Doc fee: Michigan limits the dealer documentary preparation fee to the lesser of $200 or 5% of the price, indexed annually to the consumer price index since 2020 with the current dollar figure published by the Secretary of State. The current indexed figure could not be verified: michigan.gov was blocked, legislature.mi.gov failed TLS, and the FindLaw copies of MCL 257.251 and 257.251a do not contain the provision, so the statutory section was not located. CarEdge's report of 93,200 verified quotes (July 2025 to September 2026) puts the average doc fee in Michigan at $287.
- Registration: Annual fee for 1984 and later passenger vehicles is set from the manufacturer's list price under MCL 257.801(1)(p): $36 for list price up to $6,000, rising by band to $178 at $30,000 plus $6 for each additional $1,000 (about $298 on a $50,000 list price). The section reduces the fee to 90% of the prior year's amount for the second, third and fourth registrations. Read on FindLaw (current as of Jan 1, 2025) because state sites were unreachable.
Next steps
- Out-the-door price calculator: adds the Michigan doc fee, title and registration to the tax for the full figure.
- Dealer doc fees by state and registration and title fees by state: see how Michigan compares.
- All states: the full sales tax table.
Tax is fixed. The price is not.
CarWorthIt prices a specific VIN at its mileage against cars actually for sale near your ZIP code from $2.99. The $9.99 Negotiation Bundle adds an opening offer and a walk-away figure, so the number Michigan taxes is the right one.
Michigan car tax questions
Does Michigan charge sales tax on a private-party car sale?
Yes. The 6% use tax is collected by the Secretary of State before the title and registration are transferred to the buyer.
Does Michigan give a trade-in credit on car sales tax?
Partly. MCL 205.51 phases in the trade-in credit: the lesser of the trade-in value or $5,000 from Jan 1, 2019, with the dollar cap rising by $1,000 every January 1 from 2020, and no limit from the year the cap would exceed $14,000. That gives $12,000 for 2026 and unlimited from Jan 1, 2029. The 2026 figure is computed from the statute text; the Michigan Treasury page publishing the annual amount could not be fetched. The credit is capped at $12,000.
What is the dealer doc fee cap in Michigan?
Michigan caps the fee by formula. Michigan limits the dealer documentary preparation fee to the lesser of $200 or 5% of the price, indexed annually to the consumer price index since 2020 with the current dollar figure published by the Secretary of State. The current indexed figure could not be verified: michigan.gov was blocked, legislature.mi.gov failed TLS, and the FindLaw copies of MCL 257.251 and 257.251a do not contain the provision, so the statutory section was not located. CarEdge's report of 93,200 verified quotes (July 2025 to September 2026) puts the average doc fee in Michigan at $287.
Do local sales taxes apply to car purchases in Michigan?
No. No local sales tax in Michigan (Tax Foundation midyear 2026 table, fetched, lists a 0.00% max local rate).
How much does a car title cost in Michigan?
$10 (flat). MCL 257.806 (FindLaw, current as of Jan 1, 2025). The same section adds: The secretary of state shall collect a $3.00 service fee, in addition to the other fees collected under this subsection, for each title issued (through October 1, 2027), and a tire disposal surcharge of $1.50 for each certificate of title; expedited (instant) title is an additional $5.00. Total paid for a standard title is therefore $14.50 under the statute; the Secretary of State fee page could not be fetched.
How much is annual car registration in Michigan?
$36+ a year for a passenger car, by value. Annual fee for 1984 and later passenger vehicles is set from the manufacturer's list price under MCL 257.801(1)(p): $36 for list price up to $6,000, rising by band to $178 at $30,000 plus $6 for each additional $1,000 (about $298 on a $50,000 list price). The section reduces the fee to 90% of the prior year's amount for the second, third and fourth registrations. Read on FindLaw (current as of Jan 1, 2025) because state sites were unreachable.
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