Michigan rules, verified against the statutes

Out-the-door price in Michigan

How Michigan works

Michigan sales tax is flat statewide at 6% — there is no local or county sales tax anywhere in Michigan, for vehicles or anything else.
Your trade-in reduces the taxable amount, but Michigan caps the credit at $12,000 for 2026 (the cap has risen $1,000 each January since 2019 and becomes unlimited starting January 1, 2029).
Manufacturer rebates are taxed in Michigan: tax is computed on the price before the rebate. A dealer's own cash discount, by contrast, does lower your taxable price.
The dealer's documentary fee is capped at $280 (adjusted every two years for inflation) and is part of the taxable price.
Extended warranties and service contracts are NOT taxable in Michigan when itemized separately — unlike physical dealer add-ons, which are.
Michigan's EV and plug-in hybrid registration surcharges are the highest in the country, and they're tied to the state gas tax rate rather than a fixed number.

Rules last verified Jul 6, 2026. Our methodology.

Try it for your ZIP

Vehicle price

The negotiated (or advertised) selling price, before fees and tax.

Your ZIP code

Tax and registration follow where YOU register — not the dealership.

Condition

New Used CPO

Fuel

EV/PHEV surcharges apply in many states.

More options — trade-in, rebates, doc fee, add-ons

Trade-in value

Reduces your taxable amount only in states that allow it.

Trade-in loan payoff

Display-only in the equity math — doesn't affect tax.

Manufacturer rebate

Taxed in some states, a tax-free discount in others.

Dealer discount

Off-invoice discount from the dealer — different from a rebate for tax.

Dealer doc fee (if quoted)

Leave blank to use your state's cap or the typical amount.

Dealer add-ons total

Nitrogen, VIN etch, protection packages… labeled negotiable in the output.

F&I products total (VSC, GAP…)

Excluded from tax in some states when itemized separately.

Model year

MSRP / vehicle value

Needed in states with value-based registration (AZ VLT, NV GST).

Financing the purchase I have a plate to transfer (matters in Florida — skips the $225 initial registration)

Truck / commercial (California weight fees)

Vehicle type

Pickups always use the unladen-weight schedule (VC §9400) — never CVRA.

Curb (unladen) weight, lbs

On the door-jamb sticker. Blank = typical half-ton bracket ($80).

Axles

Declared GVW/CGW, lbs

As declared on the REG 4008. CVRA vehicles skip the TIF.

Used vehicle details (California)

Plate expiration (month)

Expired or expiring within 120 days of purchase → renewal fees ride along with the deal. Blank = assume they're due (safe estimate).

No current California plates (out-of-state car — full first registration + smog test due)

My price already includes…

Some dealers now fold fees into the advertised price (FTC pressure; California's total-price law). Check what yours covers so nothing gets counted twice.

Doc fee Emissions / smog testing charge (used vehicles)

Michigan OTD questions, answered

Does a trade-in reduce sales tax in Michigan?

Yes — Michigan taxes the difference: your trade-in's value is subtracted before tax is computed.

Are manufacturer rebates taxed in Michigan?

Effectively yes — tax is computed before the rebate is applied, so you pay tax on the pre-rebate price.

Is the doc fee capped in Michigan?

Yes — the cap is $280.00 (MCL 492.113(2)(a); current $280 set by DIFS Bulletin 2025-03-CF (eff. 2025-2026 biennium)). A dealer may not exceed it.

Doc fees in all 50 states Registration fees by state