MI Sales Tax 101 Shipping States

Is Shipping Taxable in Michigan?

by Mark Faggiano

Shipping taxability MichiganNo one likes sales tax, especially eCommerce sellers. It can be the headache and a liability if not done correctly. The states don’t improve the situation by having various rules to follow about when and how it is applied. In this article, we will explore how Michigan handles the taxability of shipping and handling.

Is Shipping Taxable in Michigan?

The Michigan Department of Treasury has this to say:

Michigan Sales Tax Shipping

Despite the confusing language, it appears that sellers will have to charge sales tax on shipping and handling if shipping a taxable item. If the item is non-taxable, then no need to charge sales tax on the shipping.

In Summary:

You will most likely charge sales tax on shipping in Michigan.

If you are selling an item and you ship it, the shipping and handling is taxable. It doesn’t matter if the shipping charges are separately stated. If the item is non-taxable, then also don’t charge sales tax on the shipping charges.

Still have questions? Ask us in the comments.

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