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.
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.
| Price | No 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.