Skip to main content
DMVCosts

Michigan Car Sales Tax Calculator

Michigan charges a flat 6% sales or use tax on every vehicle sale - dealer or private-party, no county or city ever adds a cent. What actually moves the bill is the trade-in credit, and it's still mid-rollout: the state has raised the exempt trade-in value by $1,000 every January since 2019, and 2026's cap sits at $12,000. Trade in a car worth more than that and only the first $12,000 comes off your taxable price; the credit doesn't go unlimited until 2029.

100% free · no signupverified July 2026

Your numbers

$
$

2026 credit caps at $12,000 of the trade-in's value.

Official fees

Michigan car sales tax chart

Standard rate

6%

dealer and private-party sales

Dealer trade-in credit (2026)

up to $12,000

of the traded vehicle's value comes off the taxable price

Family transfer

0%

spouse, parent, child, sibling, stepparent/stepchild, stepsibling, half-sibling, grandparent/grandchild, father/mother/son/daughter/brother/sister-in-law, grandparent-in-law, or legal ward/guardian

RV trade-in credit

Unlimited

recreational vehicles get full credit, no cap

Fraudulent exemption claim

Up to 175% of tax owed

penalty if Treasury can't verify the relationship

Figures verified July 2026 against official sources (listed below). Always confirm the final amount with the Michigan Secretary of State (branch office or SOS2GO/Online Services) - counties can add small local fees.

State rate
6% flat
Local add-ons
None
2026 trade-in cap
$12,000
Full (unlimited) credit
Starts 2029
Qualifying family
Fully tax-exempt

Overview

Michigan also runs one of the broadest family-transfer exemptions in the country - spouse, parent, child, sibling, step- and half-relations, grandparents, and a long list of in-laws all skip the 6% entirely, whether the car is a gift or a paid sale between them. Pick your scenario below and the calculator applies the right Michigan rule.

Same state, other costs

More Michigan vehicle costs

Common questions

Michigan car sales tax FAQ

How much sales tax will I pay on a $25,000 car with a $10,000 trade-in in Michigan?
6% of $15,000 = $900. Since the 2026 trade-in cap is $12,000, a $10,000 trade-in comes off in full. If the trade-in were worth $15,000, only $12,000 of it would count, so you'd still be taxed on $13,000.
When does Michigan's trade-in credit stop being capped?
The cap has climbed $1,000 every January since a 2013 law began the phase-in: $11,000 in 2025, $12,000 in 2026, scheduled for $13,000 in 2027 and $14,000 in 2028. Once it exceeds $14,000, the credit becomes unlimited - full trade-in value, tax-free - starting in 2029.
Does the trade-in credit apply to a private-party sale?
No - the credit is specific to trading a vehicle in to a licensed dealer as part of buying another one. If you sell your old car privately and buy a different one privately, there's no trade-in mechanic; each transaction is taxed on its own.
Who counts as 'family' for Michigan's tax exemption?
A long list: spouse, parent, child, sibling, stepparent/stepchild, stepsibling, half-sibling, grandparent/grandchild, and in-laws (mother, father, son, daughter, brother, sister), plus a grandparent-in-law or a legal ward/guardian relationship. It covers sales as well as gifts - a paid sale between qualifying relatives is just as tax-exempt as a gift.
Do I need paperwork to prove the family relationship?
Not at the SOS counter - you just mark the relationship on Form RD-108 when titling. But the Michigan Department of Treasury can later ask you to document it, and falsely claiming the exemption risks a penalty of up to 175% of the tax that should have been paid, plus possible criminal referral.
Is there a cap on trade-in credit for RVs?
No - recreational vehicles get an unlimited trade-in credit under Michigan Department of State guidance, unlike the capped schedule that applies to cars, trucks, and motorcycles.

Receipts

Official sources

Every number on this page comes from these documents - check them yourself.

Everywhere else

Car Sales Tax Calculator by state

Fees and rules are different in every state. Pick yours for exact numbers.

each state hand-verified against its DMV before it goes live

Disclaimer

DMVCosts provides fee estimates for general informational purposes only - it is not legal, tax, or financial advice, and no calculator can account for every county surcharge, exemption, or mid-year rate change. Figures are verified against official sources on the date shown, but fees change over time.

The final, binding amount is always the one quoted by the Michigan Secretary of State (branch office or SOS2GO/Online Services). Confirm with them before making payment decisions. To the fullest extent permitted by law, DMVCosts disclaims all liability for decisions made based on these estimates.