Michigan Contractor Sales Tax 2026

Michigan sales tax rate for contractors

• Combined rate: 6% (no local addition)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Michigan Department of Treasury

How Michigan treats contractor labor

Contractor pays Use Tax on materials brought into Michigan. Real property labor exempt.

Michigan-specific rules

Use Tax of 6% on materials purchased out-of-state. Notice of Furnishing within 20 days is mandatory for subs - most-missed Michigan requirement.

Michigan mechanics lien rights

Beyond sales tax, Michigan contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Notice of Furnishing required from subcontractors within 20 days of first furnishing.

Michigan contractor licensing

Michigan Bureau of Construction Codes (LARA) - required for licensed work. $185 (residential builder) + exam. Board: https://www.michigan.gov/lara.

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Michigan contractor resources by trade

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