Real Michigan deals, worked out
Each example runs through the same calculator above, line by line, so you can check every number yourself.
1Detroit area: big trade-in over the cap
A buyer pays $40,000 and trades in a car worth $15,000. Only $12,000 of the trade counts for 2026, so tax is on $28,000.
| Vehicle price | $40,000.00 |
| Sales tax (6%) on $28,000.00 | $1,680.00 |
| Title fee | $15.00 |
| Out-the-door | $41,695.00 |
| Due after the $15,000 trade-in | $26,695.00 |
2Private sale
A buyer pays a private seller $11,000. The full price is taxed at the Secretary of State.
| Price paid | $11,000.00 |
| Sales tax (6%) on $11,000.00 | $660.00 |
| Title fee | $15.00 |
| Out-the-door | $11,675.00 |
The trade-in cap
Michigan phased in trade-in credit with a cap that rises each year. The Department of Treasury's 2026 dealer instructions set it at $12,000 or the agreed-upon value of the trade, whichever is less, up from $11,000 in 2025. A $15,000 trade-in therefore saves tax on only $12,000. The credit applies only to a dealer sale.
Michigan car tax at common prices
What a new gas car bought from a dealer comes to at four prices. The trade-in column shows how much a $10,000 trade-in changes the tax under Michigan's rules.
| Price | Tax | Tax with $10,000 trade-in | Taxes + fees |
|---|---|---|---|
| $15,000 | $900.00 | $300.00 | $915.00 |
| $25,000 | $1,500.00 | $900.00 | $1,515.00 |
| $35,000 | $2,100.00 | $1,500.00 | $2,115.00 |
| $50,000 | $3,000.00 | $2,400.00 | $3,015.00 |
Title and registration
The title fee is $15, plus $5 for an expedited title and $1 to add a lien. Registration for 1984 and newer cars is a percentage of the MSRP at first titling, which drops for the next three years and then stays flat. The Secretary of State's fee estimator gives the exact amount, so the calculator leaves registration out.
Michigan taxes and fees at a glance
Officialfrom a state agency sourceEst.varies or not yet confirmed
| Item (detroit area: big trade-in over the cap) | Status | Amount |
|---|---|---|
| Sales tax (6%) | Official | $1,680.00 |
| Title fee | Official | $15.00 |
| Total taxes and fees | $1,695.00 |
Michigan car tax FAQ
What is the car sales tax in Michigan?
6% of the price after any allowed trade-in credit.
How much trade-in credit does Michigan allow in 2026?
Up to $12,000, or the trade's value if less, on a dealer sale.
How much is a Michigan title?
$15, plus $5 for an expedited title.
Sources
We build every number from these agency pages. If something has changed, tell us and we'll fix it.