Michigan charges 6% sales tax on cars, with no local add-on. Two things set it apart: the trade-in credit is capped ($12,000 in 2026), and registration is priced by the car’s original list price.
Michigan car taxes and fees at a glance
| Sales tax | 6%, no local tax |
|---|---|
| Trade-in | Subtracted on dealer sales up to $12,000 in 2026; rises $1,000 a year, no cap from 2029 |
| Title | $15 |
| Registration | By original list price: $36 up to $6,000, $178 at $29,000 to $30,000, plus $6 per $1,000 above; 10% less each of the first 3 years after |
Rules worth knowing
- You have 15 days after the sale to transfer the title; after that there’s a $15 late fee.
- Private buyers pay the 6% at the Secretary of State when they transfer the title.
Example: what you’d pay in Michigan
Buying a $30,000.00 used car from a dealer, with a $5,000.00 trade-in:
| Sales tax (6%) | $1,500.00 |
| Title transfer | $15.00 |
| Registration (1 year, based on original list price) | $168.48 |
| Taxes and fees | $1,683.48 |
|---|---|
| Out-the-door price | $26,683.48 |
Dealer documentation fees aren’t included in this example; add your dealer’s fee in the calculator.
Frequently asked questions
How much does a trade-in save on sales tax in Michigan?
6% of the trade-in value, up to a $12,000 trade-in in 2026.
Why is Michigan registration so expensive on newer cars?
It’s based on the car’s original list price and only drops 10% a year for the first three years.
Checked October 2026 against official Michigan sources. Rates and fees change; your dealer or the motor vehicle office has the final numbers. How we calculate.
Sources
- MCL 205.51 (trade-in credit limits)
- MCL 257.801 (registration tax schedule)
- Michigan SOS: Title transfer and vehicle registration