Federal Income Tax Calculator

MICHIGAN CAR SALES TAX · 2026

Michigan car sales tax calculator

Michigan charges 6% sales tax on a car, less up to $12,000 of trade-in on a dealer purchase in 2026. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,500.00.

Your purchase

Tax on this purchase

Tax due
$1,500.00
Sales and use tax
$1,500.00
Taxed amount
$25,000.00
Trade-in subtracted
$10,000.00

Michigan car sales tax by price

A new car from a dealer.

Michigan car sales tax by price — 2026
PriceNo trade-in$10,000 trade-in
$20,000$1,200.00$600.00
$35,000$2,100.00$1,500.00
$50,000$3,000.00$2,400.00
$75,000$4,500.00$3,900.00

Michigan car sales tax questions

How much is car sales tax in Michigan?

Michigan charges 6% sales tax on a car, less up to $12,000 of trade-in on a dealer purchase in 2026. On a $35,000 car with a $10,000 trade-in, bought from a dealer, the tax is $1,500.00.

Does a trade-in lower Michigan's car sales tax?

Partly. Michigan subtracts up to $12,000 of a trade-in on a dealer purchase in 2026. A $10,000 trade-in on a $35,000 car saves $600.00. A private sale gets no trade-in deduction.

Is a private car sale taxed in Michigan?

Yes. Michigan taxes a private sale at the same rate, with no deduction for a trade-in.

What the calculator leaves out

  • This site has not confirmed whether Michigan taxes a manufacturer rebate, so the calculator taxes the price before it.

Title, registration and plate fees, dealer fees, and any yearly tax on owning the vehicle are not included.

Sources

Read the full assumptions and sources.