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Michigan · What a car really costs

Buying a car in Michigan.

Michigan charges sales tax of 6% statewide on vehicles, with no local add-on. Trade-in credit is limited here, so check the cap before you count on it.

6%
Sales tax on a vehicle
Capped credit
Trade-in reduces the taxable price
$15.00
Title fee
$200
Registration, typical new car
$280
Doc fee, capped by law

How the tax works.

No local sales tax in Michigan.

Manufacturer rebates are taxable: the sales tax base is the price before the rebate is applied.

Sales tax on a dealer sale is computed on the RD-108 and remitted with the title application; the trade-in credit does not apply to leases.

Trade-ins: Public Acts 1 and 2 of 2018: trade-in credit started at $5,000 in 2019 and rises $1,000 each January 1 until it exceeds $14,000 (2029), after which the full trade-in value is credited. 2025 cap was $11,000 (Treasury notice 12/27/2024); 2026 cap is $12,000.

At the DMV.

FeeAmount
Title$15.00
Registration (value-based)~$200
Electric vehicle / hybrid fee (annual, EVs under 8,000 lbs ($50 for PHEVs), plus a gas-tax-indexed surcharge)$140.00
Plate fee for 1984 and newer passenger vehicles is a percentage of the MSRP at first titling (MCL 257.801(1)(p)), roughly 0.5% of list price (about $200 on a $40,000 car), then reduced 10% per year for the following three years. Exact figure comes from the SOS registration fee calculator; the statutory table could not be fetched in this run.
Annual value-based tax: {"name":"Value-based plate (registration) fee","rate":"Percentage of original MSRP, reduced 10% per year for three years","notes":"The registration fee itself is the value-based charge."}

Leasing in Michigan.

Lease tax applies to each monthly payment rather than to the full price of the car, so you pay it as you go.

Cities in Michigan.

Pick your city for the exact combined rate where you register, plus what title and registration run there.

DetroitWayne CountyGrand RapidsKent CountyLansingIngham CountyFlintGenesee CountySaginawSaginaw CountyKalamazooKalamazoo CountyAnn ArborWashtenaw CountyMidlandMidland CountyWarrenMacomb CountyBattle CreekCalhoun County
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Questions.

How much is sales tax on a car in Michigan?

6%. Michigan applies one rate statewide on vehicles, so it does not change from city to city.

Does a trade-in lower the sales tax in Michigan?

Public Acts 1 and 2 of 2018: trade-in credit started at $5,000 in 2019 and rises $1,000 each January 1 until it exceeds $14,000 (2029), after which the full trade-in value is credited. 2025 cap was $11,000 (Treasury notice 12/27/2024); 2026 cap is $12,000.

What are title and registration fees in Michigan?

Title is $15.00. Plate fee for 1984 and newer passenger vehicles is a percentage of the MSRP at first titling (MCL 257.801(1)(p)), roughly 0.5% of list price (about $200 on a $40,000 car), then reduced 10% per year for the following three years. Exact figure comes from the SOS registration fee calculator; the statutory table could not be fetched in this run.

Is the doc fee capped in Michigan?

Yes, at $280. MCL 257.251: doc fee may not exceed 5% of the cash price or the CPI-adjusted cap, whichever is less; DIFS Bulletin 2025-03-CF sets the cap at $280 (secondary report; bulletin fetch was blocked). Typical $260 per CarEdge (secondary).

How is a lease taxed in Michigan?

Tax applies to each monthly payment rather than the whole price of the car, so the tax is spread across the lease.

Where these numbers come from.

Rates, fees, and rules change. These figures are estimates for planning, not tax advice; confirm the final numbers with the dealer and your state's motor vehicle agency before you buy.