Food and beverage taxes in Michigan can be complicated to calculate and understand. Tax rates vary by location and there are exemptions for certain types of food. This comprehensive guide will explain food and beverage taxes across Michigan, outline exemptions, and provide a location-based Michigan food tax calculator to estimate taxes owed.

Michigan Food Tax Calculator

Use this Michigan food tax calculator to estimate the total tax on a food purchase in major Michigan cities:

Michigan food tax calculator makes it easy to estimate taxes for food purchases in major Michigan cities. Just input the city, food total, and the calculator does the rest!

Food Tax Rates in Michigan Cities and Counties

Food and beverage taxes in Michigan consist of 6% state sales tax plus any local taxes. Here are the food tax rates in major Michigan cities and counties:

Detroit and Wayne County

• 6% state sales tax
• 4% city income tax
• Total 10% combined tax on food

Grand Rapids and Kent County

• 6% state sales tax
• 1% county tax
• Total 7% combined tax on food

Warren and Macomb County

• 6% state sales tax
• No additional local taxes
• Total 6% tax on food

Sterling Heights and Macomb County

• 6% state sales tax
• No additional local taxes
• Total 6% tax on food

Lansing and Ingham County

• 6% state sales tax
• 0% city income tax
• Total 6% tax on food

Ann Arbor and Washtenaw County

• 6% state sales tax
• 1% city income tax
• Total 7% combined tax on food

This table summarizes food tax rates for major Michigan cities and counties:

City	County	State Sales Tax	Local Tax	Total Food Tax
Detroit	Wayne	6%	4%	10%
Grand Rapids	Kent	6%	1%	7%
Warren	Macomb	6%	0%	6%
Sterling Heights	Macomb	6%	0%	6%
Lansing	Ingham	6%	0%	6%
Ann Arbor	Washtenaw	6%	1%	7%

Check with your specific city and county to determine the total tax rate that applies to food purchases. Some small cities may have an additional local income tax on top of the county and state taxes.

Food Tax Exemptions in Michigan

Certain food items are exempt from sales tax in Michigan. This includes:

• Unprepared fruit and vegetables
• Milk and dairy products
• Eggs
• Live fish
• Bread and cereal products
• Infant formula

Foods that are exempt do not have any state or local taxes applied during checkout. For example, buying $10 worth of fresh produce in Detroit would have $0 taxes, despite the 10% combined rate.

However, there are some specifics around exempt foods in Michigan:

• Prepared salads and foods are still taxed, even if they contain produce.
• Beverages other than milk are taxed, even if purchased with groceries.
• Hot foods prepared on-site are taxed.

Understanding exactly which foods are exempt can save money on groceries each month. Focus on purchasing basic whole ingredients to avoid taxes.

Michigan Food Tax Exemption Rules and Administration

The administration of tax exempt food items in Michigan follows these rules:

• It is the responsibility of food retailers to properly identify and exempt tax-free food items at checkout.
• Stores must submit an exemption claim form to the state seeking refunds for sales tax collected incorrectly on exempt foods.
• State auditors may periodically review stores for compliance on exempt food sales. Fines can be issued for errors.
• Food pantries, banks, and other charity organizations can purchase qualified grocery items tax-free. Proper tax exemption forms must be submitted.
• Prepared foods, dietary supplements, candy, gum, and soft drinks are not exempt.

In summary:

• Tax exemption occurs at the point of sale by retailers.
• The state requires strict compliance and audits businesses.
• Specific rules apply to grocery items that qualify for exemption.

Careful record-keeping and staff training helps grocers properly administer Michigan’s food tax exemptions. Staying up-to-date on exempt food rules is also essential.

What grocery items are tax exempt in Michigan?

The following food items are exempt from sales tax in Michigan:

• Fresh fruits and vegetables
• Milk and other dairy products
• Eggs
• Bread and cereal products
• Live fish
• Infant formula

Prepared foods, dietary supplements, candy, gum, and soft drinks are not exempt.

Does tax exemption depend on how food is purchased in Michigan?

Yes, how the exempt food is purchased makes a difference. For example:

• Whole raw produce is exempt, but a prepared fruit salad is taxable.
• A gallon of milk is exempt, but a milkshake bought ready-to-drink is taxable.
• Eggs bought in a carton are exempt, but a hot breakfast sandwich with eggs is taxable.

The exemption applies to basic grocery ingredients in their original state. Prepared foods and ready-to-eat items sold at restaurants or delis are not exempt.

Can restaurants and bars get tax exemptions on exempt Michigan foods?

No. Tax exemptions only apply when exempt grocery items are purchased for home consumption from a grocery store, supermarket, or specialty food store.

Restaurants, bars, delis, food trucks, and caterers must pay full state and local taxes on all food and drinks they prepare and sell.

Do online food delivery services have to charge tax on exempt food in Michigan?

It depends. Third-party delivery apps like UberEats or DoorDash must charge full taxes on prepared restaurant meals. However, online grocery delivery services can exempt basic grocery items if the retailer does so in their store.

If you order produce, milk, bread, etc. for home delivery from a local grocery store’s website, and that store exempts those items in-person, they should also be exempt when ordering online for delivery.

What kind of records do retailers have to keep for Michigan food tax exemptions?

Grocery stores and supermarkets must carefully track exempt food sales. This involves:

• Configuring POS systems to exempt qualified grocery items
• Maintaining exemption claim forms and sales records for auditing
• Tracking inventory and purchases of exempt foods

Proper records validate that the correct amount of sales tax is being remitted to the state. Inaccurate record-keeping can lead to penalties and interest during audits.

Is coffee taxable in michigan?

Coffee is taxable in Michigan unless it meets certain exemptions. Here are the key rules around taxing coffee in Michigan:

• Brewed coffee prepared and sold ready-to-drink (like at coffee shops or restaurants) is subject to the full state sales tax rate of 6% plus any applicable local taxes. This applies to hot, iced, and cold brew coffee drinks.
• Basic grocery coffee beans or ground coffee sold at retail markets is exempt from the 6% state sales tax. However, any local city or county taxes may still apply to packaged coffee.
• Specialty coffee drinks and beverages that blend coffee with milk, ice cream, or other ingredients are taxable in Michigan, even when sold at grocery or convenience stores.
• Food and beverages served at restaurants, coffee shops, cafes, and bars are taxable including any coffee, espresso, or coffee-based drinks.

So in summary, basic packaged coffee grounds are exempt from Michigan’s sales tax but not necessarily local taxes. All prepared coffee drinks are taxable. Coffee shops and restaurants must charge full state and local taxes on any coffee beverages they sell.

Conclusion

• Food and beverage taxes in Michigan vary based on state, county, and city rates. Use the food tax calculator in this guide to estimate local taxes.
• Certain grocery staples like produce, milk, bread, and eggs are exempt from sales tax statewide.
• Exemptions only apply when ingredients are purchased raw for home consumption, versus prepared ready-to-eat items.
• Strict rules and audits ensure retailers properly administer Michigan’s food tax exemptions at checkout.
• Understanding food tax rates in your location and exemptions can help shoppers save on groceries.

Following Michigan’s guidelines on food tax collection, reporting, and exemptions helps grocers and shoppers alike. Stay up-to-date on the latest food tax laws in your area.

Frequently Asked Questions

Is there tax on candy in michigan?

Yes, candy is taxable in Michigan. Specifically, the sales and use tax applies to candy and confectionery items. This includes chocolate, candy bars, sweets, and other prepackaged or prepared candy purchases.

There is no exemption for candy under Michigan tax law. The standard state sales tax plus any local taxes apply to candy sold in stores across Michigan.

What is Michigan’s base statewide tax rate on food?

Michigan has a 6% statewide sales tax that serves as the base rate for food and beverage purchases across the state. All jurisdictions then add any additional local food taxes on top of the 6% state tax.

Do food tax rates vary by location in Michigan?

Yes, local city and county taxes vary, causing food tax rates to differ based on location. For example, Detroit applies a 10% total tax on food while many other areas only have the standard 6% state tax. Check rates for your specific area.

What Michigan counties have the highest food tax rates?

The highest food tax rates are in:

• Wayne County (Detroit) – 10%
• Washtenaw County (Ann Arbor) – 7%
• Kent County (Grand Rapids) – 7%

These three counties have additional local taxes that raise the rates above the standard 6% state tax. Other counties only have the state tax.

Does Michigan tax groceries purchased with food stamps?

No, groceries purchased with SNAP/food stamps/EBT cards are exempt from all state and local taxes in Michigan. This includes groceries that would normally be taxable like soda and prepared deli foods. The tax exemption applies to eligible food stamp purchases.

Who establishes Michigan’s rules on food tax exemptions?

Michigan’s food tax exemptions are established by the state legislature and written into the General Sales Tax Act. The legislature determines which food items are exempt from sales and use tax. The Michigan Department of Treasury then administers the exemptions.

What is an example of a prepared food that is taxed in Michigan?

Prepared foods that are taxable include:

• Restaurant meals
• Food ordered from a deli or supermarket counter to eat on-site
• Hot buffet food
• Pre-made sandwiches and salads
• Smoothies and milkshakes

Even though these contain exempt ingredients like produce, meat, and dairy, they are prepared ready-to-eat meals and not raw ingredients. So they are subject to state and local food taxes.

Can I buy groceries tax-free online for delivery in Michigan?

You can avoid taxes on eligible grocery items purchased online for delivery from a local supermarket. Many grocery chains allow online ordering from their store inventory. As long as they properly exempt items like produce and milk normally tax-free in-store, those same items should remain exempt for home delivery.

Where can I find my local food tax rate in Michigan?

You can contact your city treasurer or clerk’s office to learn your exact local food tax rate. Most jurisdictions also list tax rates online. Search for “(your city) food and beverage tax rate” to find it. The state sales tax will be 6% plus any additional county/city taxes that apply.

What is an example of a non-food item that is taxable in Michigan?

Non-food items that are always taxable include:

• Home goods like paper towels, cleaning supplies, soap, etc.
• Pet food and supplies
• Gardening tools and plants
• OTC medicines and supplements
• Personal hygiene items
• Housewares and small appliances

Anything not meeting the definition of exempt “food for home consumption” is subject to full state and local sales tax in Michigan.