Calculate Now

Michigan Car Sales Tax Calculator

The Michigan car sales tax calculator applies the state's 6% use tax to the price after your trade-in allowance. Michigan is still phasing in a full trade-in credit: for 2026 the credit is capped at $12,000. Enter your numbers to see the estimate.

Calculate Your Michigan Car Sales Tax

Results update as you type. Nothing you enter leaves your browser.

The selling price on your buyer’s order.

What the dealer credits you.

State
MichiganChange state

Condition

Michigan's use tax applies to the total price the dealer charges, which includes the documentation fee.

Advanced options

Enter your own amounts where you know them. They replace our estimates.

Replaces the state estimate.

Replaces the state estimate.

Plates, inspections, add-ons.

Estimate only

Estimated out-the-door price

$0.00

Enter a vehicle price to see your estimate.

Vehicle price
$0.00
Trade-in
—
Taxable amount
$0.00
State sales tax (6%)
$0.00
Title fee
$0.00
Registration fee
$0.00
Dealer / documentation fee
—
Estimated total
$0.00
How this estimate was calculated

    Estimates are for informational purposes only. Actual taxes and fees may vary based on your location, vehicle, transaction and current state rules.

    Estimated Michigan Car Sales Tax

    State rate6%
    Local taxNone on vehicles
    Trade-inLowers taxable price
    Dealer feeTaxed with the price

    Michigan charges a 6% use tax when a vehicle title is transferred, which comes to $1,500.00 on a $25,000 purchase with no trade-in.

    A trade-in lowers the taxable price, but the credit is being phased in gradually rather than allowed in full. For 2026 the trade-in allowance is capped at $12,000 or the agreed-upon value of the trade-in, whichever is less. The cap rises each year and is scheduled to cover the full trade-in value by 2029.

    There is no city or county sales tax on a vehicle in Michigan, so the 6% rate is the same everywhere in the state.

    Michigan Car Title and Registration Fees

    Michigan charges a $15 title transfer fee ($16 if a lien is added). Registration is set by the vehicle's manufacturer's suggested retail price for model years 1984 and newer, so we have not added a flat registration figure; use the Secretary of State's plate fee calculator, then enter your own amount under Advanced options.

    FeeAmountNotes
    Title transfer feeTitle$15.00$15 to transfer a title; $16 if a lien is added.
    Registration plate feeRegistrationVariesFor model years 1984 and newer, the plate fee is based on the manufacturer's suggested retail price (ad valorem). Use the Secretary of State's plate fee calculator, then enter your amount under Advanced options.
    Dealer documentation feeSet by the dealerVariesWe have not confirmed a Michigan dollar limit on the dealer documentary/processing fee.

    How Michigan Car Sales Tax Is Calculated

    1. Start with the purchase price.
    2. Subtract your trade-in value, up to the 2026 cap of $12,000 (the trade-in credit is scheduled to reach 100% by 2029).
    3. Multiply the result by the state rate of 6%.
    4. Add the $15 title fee and your registration plate fee to reach your out-the-door price.

    The trade-in must be a like-kind motor vehicle sold in the same transaction; cash-only trade-ins or unrelated property do not qualify for the credit.

    The $12,000 cap applies to motor vehicles only. There is no dollar limit on the trade-in credit for a recreational vehicle.

    This calculator deducts your full trade-in value, which can overstate the credit if your trade-in is worth more than the 2026 cap of $12,000; check the Secretary of State's trade-in credit notice for the current-year cap. Read how a trade-in affects sales tax to see how this compares with states that allow the full trade-in credit.

    Example Michigan Car Sales Tax Calculation

    This example keeps the trade-in under the 2026 credit cap of $12,000, so the full $8,000 reduces the taxable price.

    Vehicle price$25,000.00
    Trade-in−$8,000.00
    Taxable amount$17,000.00
    State sales tax (6%)$1,020.00
    Title fee$15.00
    Registration feeNot included
    Estimated total$18,035.00

    This is an illustration, not a quote.

    Frequently Asked Questions About Michigan Car Sales Tax

    What is the car sales tax rate in Michigan?

    Michigan charges a 6% use tax on a vehicle purchase, collected when the title is transferred. There is no additional city or county tax.

    Does a trade-in reduce Michigan sales tax?

    Yes, but only up to a cap. For 2026 the trade-in credit is limited to $12,000 or the agreed-upon trade-in value, whichever is less. The cap is scheduled to keep rising until the credit is unlimited by 2029.

    Is the dealer processing fee taxed in Michigan?

    Yes. The 6% use tax applies to the total price the dealer charges for the vehicle, which includes the documentation or processing fee.

    How much is the title fee in Michigan?

    The title transfer fee is $15, or $16 if a lien is being added. Registration is charged separately and is based on the vehicle's MSRP for newer model years.

    Neighboring states

    Vehicle calculators

    Helpful guides