Michigan sales tax codes and rates
Michigan's state sales tax rate is 6%; county and city rates come on top and are not included. A Nefin company that sells into Michigan gets 5 sales codes, each named after the line of the 5080 / 5095 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under MI-8, and Nefin works out the use tax due.
Michigan codes from the 5080 / 5095
Each code is “MI-” plus the line it fills on the 5080 / 5095. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| MI-6 | MI taxable balance 6% (5095 Line 6) | 6% |
| MI-5a | MI resale, sublease or subrent (5095 Line 5a) | 0% |
| MI-5d | MI interstate commerce (5095 Line 5d) | 0% |
| MI-5h | MI government exemption (5095 Line 5h) | 0% |
| MI-5k | MI other exemptions (5095 Line 5k) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| MI-8 | MI purchases with no tax paid, use tax (5095 Line 8) | 0% |
Michigan in the tax books
Nefin’s sales tax book has one row per invoice and one column per 5080 / 5095 line; these are the Michigan columns and the totals worked out from them.
Sales Tax Book
Michigan - 5080 / 5095
- [MI-6]Taxable balance (5095 Line 6)
- [MI-5a]Resale (5095 Line 5a)
- [MI-5d]Interstate commerce (5095 Line 5d)
- [MI-5h]Government exemption (5095 Line 5h)
- [MI-5k]Other exemptions (5095 Line 5k)
Totals Nefin calculates
- [MI-4] Total gross sales (5095 Line 4)Sum of the net amounts in [MI-6] + [MI-5a] + [MI-5d] + [MI-5h] + [MI-5k]
- [MI-7] Gross tax due 6% (5095 Line 7, to 5080 Line 2a)Net amount × 6%, from [MI-6]
Use Tax Book
Michigan - 5080 / 5095
- [MI-8]Purchases for which no tax was paid (5095 Line 8)
Totals Nefin calculates
- [MI-9] Use tax 6% (5095 Line 9, to 5080 Line 7)Net amount × 6%, from [MI-8]
Frequently asked questions
What is the Michigan sales tax rate?
The state rate is 6%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Michigan sales tax codes does Nefin set up?
5 sales codes from the 5080 / 5095, for example MI-6 (MI taxable balance 6% (5095 Line 6)), MI-5a (MI resale, sublease or subrent (5095 Line 5a)), MI-5d (MI interstate commerce (5095 Line 5d)).
How does Nefin handle Michigan use tax?
Book a purchase on which the vendor charged no Michigan tax under MI-8 (MI purchases with no tax paid, use tax (5095 Line 8)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6%.
Are these Michigan codes official?
They are a starting point. Each code follows a line of the 5080 / 5095, but check them against your return before you file, and edit them in Settings, VAT rates.