Michigan Car Sales Tax Calculator Tax, title & license fees (2026)
Statewide sales/use tax (no local sales tax) · 6% state rate
Calculate Michigan car tax & fees
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How much is car sales tax in Michigan?
Michigan charges a flat 6% sales or use tax on vehicles, with no local tax. The registration fee is the part that surprises people: for 1984 and newer cars it's based on the vehicle's original list price (MSRP), not what you paid.
For a dealer sale, the taxable amount is the price minus your trade-in and any rebate. For other transfers, Michigan taxes the higher of the price or the vehicle's retail value.
Registration comes from an MSRP chart: $36 for a list price up to $6,000, rising in steps to $178 at $30,000, then $6 more for each additional $1,000. Traffic and transportation add-ons of $8 are included. The amount drops as the car goes through renewals.
A title costs $15, plus $15 more if you apply more than 15 days after the sale. A new plate is $5. Electric vehicles pay a $267 surcharge and plug-in hybrids $113 (light vehicles). Ordinary hybrids pay nothing extra.
- Dealer: taxable = price - trade-in - rebate
- Private: taxable = greater of price or fair market value (no trade-in)
- Tax = taxable x 6%
- Registration from MSRP bracket + add-ons
- Total = tax + title + registration + plate + EV/PHEV surcharge + passport + doc fee
Michigan car tax example with real numbers
New car with a higher MSRP
You buy a new car for $31,000 (MSRP $33,000), trade in your old one for $6,000 and receive a $1,000 rebate.
- Taxable amount: $31,000 − $6,000 − $1,000 = $24,000.
- Sales tax: $24,000 × 6% = $1,440.
- Registration: $33,000 is $3,000 over $30,000, so $178 + 3 × $6 = $196, plus $8 add-ons = $204.
- With the $15 title and $5 plate, the estimated total is $1,664.
| Taxes | |
|---|---|
| Sales/use tax6% of $24,000.00 | $1,440 |
| Title & registration | |
| Title | $15 |
| New plate | $5 |
| Registration (from MSRP) | $204 |
| Estimated total | $1,664 |
Computed with the calculator on this page using the figures in our data. Local add-ons not mentioned in the example are left out.
Exceptions that change your Michigan tax bill
Transfers to listed relatives
No use tax is due for transfers to a spouse, parent, sibling, child, step-relative, grandparent, grandchild, or legal ward or guardian. The Department of Treasury makes the final decision and may ask for proof.
Gifts to anyone else
A gift to someone not on the relative list is treated as taxable.
Inheritance
An heir taking title alone owes no tax. Adding a non-family co-owner at inheritance makes the transfer taxable at 6%.
Michigan vehicle sales tax rates
| State rate | 6% |
|---|---|
| Local rate | 0% |
Michigan title & registration fees
| Title | $15 |
|---|---|
| Late title | $15 |
| Late title note | Over 15 days after sale |
| Plate |
|
| Registration 1,984 and up |
|
| Registration pre 1,984 by weight | Weight-based schedule |
| EV surcharge |
|
| Plug-in hybrid surcharge |
|
| Recreation passport |
|
Michigan car tax exemptions & special cases
| Gift to a listed relative | Use tax $0 (Treasury decides) |
|---|---|
| Gift to non-listed person | Taxable |
| Inheritance by heir taking title alone | Tax $0 |
| Non-family co-owner added at inheritance | 6% tax |
| Ordinary hybrids | No EV surcharge |
Michigan car tax FAQ
Why is my Michigan registration so expensive?
For 1984 and newer passenger vehicles, the fee is based on the original MSRP, so a car with a higher list price pays more regardless of what you paid.
Is there local sales tax on cars in Michigan?
No. It's 6% statewide.
What's the late title fee?
$15 if you apply more than 15 days after the sale.
Do hybrids pay Michigan's EV surcharge?
No. Only battery-electric vehicles ($267) and plug-in hybrids ($113) pay it, for light vehicles.
Sources & verification
We checked these figures against the following official pages on October 7, 2026:
- www.michigan.gov/sos/all-services/title-transfer-and-vehicle-registration
- www.michigan.gov/sos/0,4670,7-127-1585_1611_50409-23241--,00.html
Not yet confirmed on an official page: MSRP bracket table; heavy EV/PHEV 367/183; recreation passport. Treat these figures as estimates.
Spotted something out of date? Tell us and we'll recheck it.