Businesses that need to collect Michigan sales tax register for a sales tax license with the Michigan Department of Treasury. Registration is free, and an online application through Michigan Treasury Online (MTO) is usually authenticated within 10–15 minutes. Licenses are issued for one calendar year and renew annually as long as the business keeps paying the tax it owes.
You need a Michigan sales tax license if you make taxable retail sales in Michigan and have nexus with the state.
Economic nexus. Remote sellers have nexus if, in the previous calendar year, they had more than $100,000 in gross sales to Michigan customers or 200 or more separate transactions with Michigan customers. Michigan looks at the full prior calendar year only, not a rolling 12 months.
When to start. If you cross either threshold, you must register and begin collecting on January 1 of the following calendar year. For example, a seller that passes $100,000 in Michigan sales in June 2026 starts collecting on January 1, 2027.
Physical nexus. Having an office, employees, inventory (including inventory in a third-party warehouse), or other property in Michigan creates nexus regardless of sales volume.
Marketplace sellers. Sales made through a marketplace facilitator count toward your threshold. However, if all of your Michigan sales go through marketplaces whose facilitators have Michigan nexus (and so collect the tax for you), you have no Michigan sales tax filing obligation and don't need to register. Michigan's marketplace facilitator law took effect January 1, 2020.
Who doesn't need a license. Wholesalers that only sell for resale, and contractors who install materials into real property, generally don't need a sales tax license.
→ For full nexus details, see Michigan sales tax nexus.
Businesses without an FEIN must file the paper Form 518 instead of registering online.
Step 1: Choose online or paper registrationMost businesses should register online through MTO eRegistration. You need an FEIN to register online. If you don't have one, use Form 518, Registration for Michigan Taxes.Official URL: https://mto.treasury.michigan.gov/Tip: The same registration covers sales, use, and withholding tax. Select only the taxes that apply to you.
Step 2: Start a new business registrationOn the MTO homepage, open the e-Registration option to register a new business. [VERIFY exact button label]
Step 3: Enter business detailsEnter your FEIN, legal name, DBA, ownership type, legal and mailing addresses, phone number, NAICS code, and LARA ID number if you have one.
Step 4: Enter owner and officer informationProvide each owner's or officer's name, title, address, and SSN or ITIN.
Step 5: Select sales tax and enter sales activitySelect sales tax, enter the date your Michigan sales began or will begin, the number of Michigan locations, and your estimated monthly tax liability. Treasury uses your estimate to assign your first filing frequency.Warning: Remote sellers should use January 1 of the year after they crossed the threshold as their start date, unless they had nexus earlier through physical presence.
Step 6: Submit and save your confirmationThere's no fee. Submit the application and save the confirmation page.
Step 7: Get your licenseOnline registrations are usually authenticated within 10–15 minutes. After that, create or log into your MTO account and find your sales tax license under the Letters and Licenses tab. Paper applicants receive a Treasury Registration (TR) number by mail within 4–6 weeks.
A Michigan sales tax license is free. There's no renewal fee and no local license fee, since Michigan has no local sales taxes.
Treasury can require a surety bond ($1,000–$25,000) or a cash deposit (up to one year of estimated tax) as a condition of the license. This isn't standard for new registrants.
Online registrations through MTO are usually authenticated within 10–15 minutes of submission. Your license is then available in MTO under Letters and Licenses.
Paper applications on Form 518 take 4–6 weeks. Your Treasury Registration number arrives by mail.
→ For due dates and filing details, see Michigan sales tax filing guide.
How much does a Michigan sales tax license cost?Nothing. There's no fee to register or renew.
How long does it take to get a Michigan sales tax license?Online applications through MTO are usually authenticated within 10–15 minutes. Paper applications on Form 518 take 4–6 weeks.
Does a Michigan sales tax license expire?Yes. Licenses are valid for one calendar year (January–December) and renew annually if you're paying the tax you owe.
When do remote sellers have to start collecting Michigan sales tax?On January 1 of the year after the year you had more than $100,000 in Michigan sales or 200 or more Michigan transactions.
Do I need a Michigan license if I only sell on Amazon or Etsy?No, as long as all of your Michigan sales go through marketplace facilitators with Michigan nexus. They collect and remit the tax for you.
Can I register without an FEIN?Not online. Businesses without an FEIN must mail Form 518.
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