Last updated July 14, 2017
No one likes sales tax, especially eCommerce sellers. It can be the headache and a liability if not done correctly. The states don’t improve the situation by having various rules to follow about when and how it is applied. In this article, we will explore how Michigan handles the taxability of shipping and handling.
Is Shipping Taxable in Michigan?
The Michigan Department of Treasury has this to say:
In other words, sellers are required to charge sales tax on shipping and handling if shipping a taxable item.
In Summary: You will most likely charge sales tax on shipping in Michigan.
If you are selling an item and you ship it, the shipping and handling is taxable. It doesn’t matter if the shipping charges are separately stated.
Still have questions? Ask us in the comments.
Mark Faggiano
Mark Faggiano is the Founder and CEO of TaxJar, a 100% remote company and the leading sales tax technology solution for eCommerce merchants. Over the past 15 years, Mark has funneled his passion for SaaS to help companies move upmarket by solving complex problems with an intense focus on customer service, consumer education via content and scalable technology. At TaxJar, Mark raised the biggest Series A funding round in history for an all-remote company whose unique culture has garnered nine workplace awards, including Best Company Culture and four technology awards in 2019 alone. Mark was named 2019’s number one Small and Mid-Sized CEO by Comparably. A five-time entrepreneur, Mark previously co-founded FileLater, which became the web's leading tax extension service before selling to Banks.com in 2010. Mark earned his B.A. at Boston College and MBA at the University of San Diego, CA.
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Last updated July 14, 2017
