Michigan Vehicle Tax Overview
Michigan applies a flat-rate sales tax on vehicle purchases, with specific rules for trade-ins and certain types of transactions. The state also requires various fees for registration and titling.
Sales Tax Structure
- Base Rate: 6% flat rate
- Trade-In Credit: Up to $7,000 allowed
- Private Sales: 6% of purchase price
- Lease Vehicles: Tax on monthly payments
Registration Fees (2024)
- Base Fee: Varies by vehicle value and age
- Title Fee: $15
- Plate Transfer: $10
- Late Fee: $25 after expiration
Vehicle Value Registration Fees
- $0-$14,999: $33 to $230
- $15,000-$24,999: $243 to $290
- $25,000-$39,999: $308 to $357
- $40,000+: $398 and up
Special Vehicle Categories
- Electric Vehicles: Additional $100 annual fee
- Hybrid Vehicles: Additional $30 annual fee
- Historic Vehicles: $30 for 10 years
- Commercial Vehicles: Weight-based fees
Tax Exemptions
- Vehicles transferred between immediate family
- Inherited vehicles
- Certain nonprofit organizations
- Qualified disabled veterans
- Some tribal members
Registration Requirements
- New Residents: 30 days to register
- Insurance: No-fault insurance required
- Documentation:
- Proof of ownership
- Valid ID
- Insurance certificate
- Payment for fees
Regional Considerations
- Detroit Area: Additional registration requirements
- Border Counties: Special verification needed
- Rural Areas: Different testing requirements
- UP Region: Special winter regulations
Money-Saving Tips
- Maximize trade-in credit
- Consider timing of registration renewal
- Research veteran benefits
- Check for multi-year registration options
- Compare dealer documentation fees
Common Questions
- Q: How is vehicle value determined?
A: Based on MSRP for new vehicles, market value for used
- Q: Can I transfer my plate?
A: Yes, for a $10 fee
- Q: Do I need a safety inspection?
A: Not required in Michigan