Michigan Sales Tax Registration

In Michigan it is called the Sales Tax License. The Michigan Department of Treasury issues it.

Who has to register in Michigan, how to apply, what it costs, how long it takes, and what you file once you have it.

Michigan sales tax registration at a glance

What it is called: Sales Tax License; Number issued: Treasury business account number (the business's FEIN; Treasury Registration (TR) number if no FEIN) (9-digit FEIN, or a Treasury-assigned TR number for businesses without one).
Who issues it: Michigan Department of Treasury; Apply online through Michigan Treasury Online (MTO), Start a New Business (eRegistration). Paper form: Form 518.
State fee: No state fee; No fee for a sales tax license. Treasury may require a surety bond or cash deposit of $1,000 to $25,000 from applicants with past tax delinquencies.
Processing time: Authenticated within 10 to 15 minutes; up to 48 hours to process; Treasury says eRegistration is authenticated within 10 to 15 minutes of submission and can take up to 48 hours to process; once processed, the license is available in MTO immediately. Mailed Form 518 takes 4 to 6 weeks. A business may start selling before the license arrives but must remit tax from its first sale.
Remote seller threshold: $100,000 in sales or 200 transactions; Measurement period: previous calendar year. In effect since October 1, 2018.
Filing frequency: Monthly, quarterly or annual, plus an annual return for all; Treasury assigns a frequency from estimated activity, then each year from the prior year's liability. Every filer also files an annual return by February 28. Taxpayers averaging $720,000 or more in sales or use tax a year pay on an accelerated schedule. Streamlined (SST) registrants file monthly with no annual return.
State rate: 6%; None. Michigan does not allow city or local sales or use taxes. Residential utilities and home heating fuel are taxed at 4%.

How to register in Michigan

Where to apply: Apply online with the Michigan Department of Treasury. Michigan Treasury Online (MTO), Start a New Business (eRegistration)
Application form: Form 518, Registration for Michigan Taxes (Michigan Business Taxes Registration Booklet). Form 518 (PDF)
What you need: FEIN required for online eRegistration (businesses without one mail Form 518 and get a TR number).
What the application covers: Sales tax, use tax, income tax withholding, corporate income tax and unemployment insurance (UIA).
How long it takes: Treasury says eRegistration is authenticated within 10 to 15 minutes of submission and can take up to 48 hours to process; once processed, the license is available in MTO immediately. Mailed Form 518 takes 4 to 6 weeks. A business may start selling before the license arrives but must remit tax from its first sale.
What it costs: No fee for a sales tax license. Treasury may require a surety bond or cash deposit of $1,000 to $25,000 from applicants with past tax delinquencies.
Renewal: Licenses are issued yearly and valid January through December. Treasury renews them automatically each year unless the business cancels, as long as the tax due is paid.

After you register

How often you file: Monthly, quarterly or annual, plus an annual return for all. Treasury assigns a frequency from estimated activity, then each year from the prior year's liability. Every filer also files an annual return by February 28. Taxpayers averaging $720,000 or more in sales or use tax a year pay on an accelerated schedule. Streamlined (SST) registrants file monthly with no annual return.
Due date: 20th of the month after the period; annual return due February 28.
Periods with no sales: You still file a return for every period, even with no sales.
Prepayments: Accelerated filers ($720,000+ annual sales or use tax) prepay by the 20th of the current month and reconcile by the 20th of the next month.
Rates and sourcing: The state rate is 6%. None. Michigan does not allow city or local sales or use taxes. Residential utilities and home heating fuel are taxed at 4%. Sourcing: destination (Streamlined Sales Tax member).
Late returns: 5% of the tax if not more than 2 months late, plus 5% for each further month, up to 25%, plus interest.

Michigan rules in plain English

In Michigan, the permit is a Sales Tax License from the Michigan Department of Treasury. You apply online through Michigan Treasury Online (MTO) using Start a New Business, or by mailing Form 518, Registration for Michigan Taxes. Online registration needs an FEIN. There is no fee, though Treasury can ask for a bond from applicants with past unpaid taxes. Treasury says online applications are recognized within 10 to 15 minutes and can take up to 48 hours to process. Mailed forms take 4 to 6 weeks. The license runs January to December and renews automatically each year if your taxes are paid. Treasury assigns monthly, quarterly or annual filing based on your expected and then actual tax. Returns are due on the 20th of the month after the period. Every filer must also send an annual return by February 28. The rate is a flat 6%, and Michigan has no local sales tax. Remote sellers must register if they had over $100,000 in Michigan sales or 200 transactions in the prior year. The mistake to avoid: skipping the annual return. Monthly and quarterly filers still owe it, and it does not replace any missed period returns.

Sources: Michigan Department of Treasury · Michigan Treasury Online (MTO), Start a New Business (eRegistration) · Form 518 (PDF)

More Michigan facts

Since April 26, 2023 (PA 20 and PA 21 of 2023), most separately stated delivery and installation charges are no longer taxable in Michigan. Source
Michigan does not license wholesalers; they claim exemption on Form 3372 marked 'Resale at Wholesale'. Source
A seller at only one or two events a year may file Form 5089, Concessionaire's Sales Tax Return, instead of getting a license; more than two events requires a license. Source
Every Michigan sales tax filer must file an annual reconciliation return by February 28, whatever its regular frequency. Source
Michigan still uses a 200-transaction test alongside $100,000 for remote sellers, measured on the previous calendar year. Source

We register you in Michigan

Answer a few questions about your business. We prepare your Michigan Sales Tax License application, file it with Treasury, and send you the number. $199 per state. Any state fee is separate.

Start my Michigan registration

Michigan sales tax registration FAQ

Do I need to register for Michigan sales tax?

Anyone who sells tangible personal property to final consumers in Michigan, including service businesses that also sell parts, needs a license; wholesalers and contractors do not. Sellers with no physical presence must register after $100,000 in sales or 200 transactions in Michigan (measurement period: previous calendar year).

How long does it take to get a Michigan Sales Tax License?

Treasury says eRegistration is authenticated within 10 to 15 minutes of submission and can take up to 48 hours to process; once processed, the license is available in MTO immediately. Mailed Form 518 takes 4 to 6 weeks. A business may start selling before the license arrives but must remit tax from its first sale.

What does a Michigan Sales Tax License cost?

No fee for a sales tax license. Treasury may require a surety bond or cash deposit of $1,000 to $25,000 from applicants with past tax delinquencies. Source: MCL 205.53(1). Our fee to prepare and file the application is $199.

When do I file Michigan sales tax returns?

Filing frequency: monthly, quarterly or annual, plus an annual return for all. Treasury assigns a frequency from estimated activity, then each year from the prior year's liability. Every filer also files an annual return by February 28. Taxpayers averaging $720,000 or more in sales or use tax a year pay on an accelerated schedule. Streamlined (SST) registrants file monthly with no annual return. Due date: 20th of the month after the period; annual return due February 28. File a return every period, even with no sales.

Do I need to register in Michigan as a remote seller?

Sellers with no physical presence must register after $100,000 in sales or 200 transactions in Michigan (measurement period: previous calendar year). Since Jan. 1, 2020, a marketplace facilitator with over $100,000 in Michigan sales or 200+ transactions in the previous calendar year must collect on sales it facilitates (RAB 2021-22; Treasury Marketplace Facilitator FAQs). Source: RAB 2021-21.

What happens if I sell in Michigan without a Michigan Sales Tax License?

Doing taxable business without a license, or after it expires or is suspended, is a misdemeanor punishable by a fine of up to $1,000, up to 1 year in jail, or both. Source: MCL 205.53(3).

Nearby states

This page summarizes Michigan sales tax registration rules for general information and is not tax advice. Confirm current requirements with the Michigan Department of Treasury or your tax adviser. State rules last checked October 2, 2026.