Michigan Resale Certificate Guide 2026: How to Get Yours

Michigan is a major manufacturing and retail state with a diverse economy that includes automotive, agriculture, technology, and tourism. The state imposes a flat 6% sales tax with no local add-ons, making tax calculations simpler than in most states. If you buy inventory or materials for resale in Michigan, you need to understand Form 3372, the Michigan Sales and Use Tax Certificate of Exemption. This guide covers the full process for 2026.

Michigan Sales Tax Basics

State Rate

The Michigan state sales tax rate is 6%. This is a flat rate that applies statewide. Michigan does not allow cities, counties, or other local jurisdictions to impose additional sales taxes. This is a major advantage for businesses operating in Michigan, since you only deal with one rate regardless of where you are located.

Use Tax

Michigan also imposes a 6% use tax on goods purchased from out-of-state vendors when the seller does not collect Michigan sales tax. The use tax ensures that purchases from online or out-of-state vendors are taxed at the same rate as in-state purchases. Items purchased for resale are exempt from use tax.

What Is Taxable in Michigan?

Michigan taxes most tangible personal property and some services:

• Most physical goods are taxable
• Groceries (unprepared food) are exempt
• Prescription drugs are exempt
• Clothing is fully taxable (no clothing exemption)
• Most services are not taxable, with some exceptions
• Lodging (hotel, motel) is taxable at 6% plus a separate 5% use tax on accommodations
• Digital products are generally not taxable in Michigan (though this area continues to evolve)

What Form Do You Need?

Michigan uses Form 3372, the Michigan Sales and Use Tax Certificate of Exemption. This form is issued by the Michigan Department of Treasury.

About Form 3372

Form 3372 is a multi-purpose exemption certificate. It covers resale exemptions as well as exemptions for industrial processing, agricultural production, and other qualifying uses. When claiming a resale exemption, the buyer selects "Resale" on the form.

Key fields include:

• Purchaser's name, address, and phone number
• Michigan sales tax license number
• Type of exemption claimed
• Description of products being purchased
• Purchaser's signature and date

Where to Get the Form

Form 3372 is available as a free PDF from the Michigan Department of Treasury website. You can also request a copy by contacting the department directly.

Who Needs a Michigan Resale Certificate?

Any business purchasing tangible personal property for resale needs a Michigan resale certificate. This includes:

Retailers buying inventory to sell through brick-and-mortar stores, online platforms, craft shows, or farmers markets.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution to retailers or other businesses.

Online sellers registered in Michigan who purchase inventory for resale through Amazon, eBay, Etsy, Shopify, or any other marketplace.

Manufacturers purchasing raw materials, components, and parts that become ingredients of a product manufactured for sale. Michigan also has a separate industrial processing exemption for machinery and equipment used directly in manufacturing.

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, tools, or equipment for internal operations
• Contractors buying materials that will be installed into real property

How to Apply for a Michigan Resale Certificate

Step 1: Register for a Michigan Sales Tax License

You need a Michigan sales tax license before you can issue a valid Form 3372. Registration is handled through the Michigan Department of Treasury.

What you need to register:

• Federal EIN or SSN
• Business legal name and DBA
• Business address
• Type of entity
• Description of business activities
• Expected start date
• Estimated monthly taxable sales

Registration is free. Apply online through Michigan's Michigan Treasury Online (MTO) portal.

Processing time: Typically 7 to 10 business days for online applications.

Step 2: Complete Form 3372

Download the form and fill in your business details. Check "Resale" as the exemption type. Enter your Michigan sales tax license number and describe the products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed Form 3372 to each vendor you want to buy from tax-free. The vendor retains the certificate and does not charge sales tax on qualifying purchases.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Michigan is a member of the Streamlined Sales Tax (SST) agreement, which simplifies multi-state compliance.

SST Membership

As an SST member, Michigan accepts the Streamlined Sales and Use Tax Agreement Certificate of Exemption. Out-of-state businesses registered through the SST system can use the SST certificate when buying goods in Michigan for resale.

This is particularly helpful for businesses operating in multiple SST member states, since one certificate format works across all member states.

Out-of-State Sellers

Michigan's economic nexus threshold is $100,000 in sales or 200 transactions with Michigan customers in the prior calendar year. If you meet either threshold, you must register, collect, and remit Michigan sales tax.

Marketplace Facilitator Rules

Michigan requires marketplace facilitators (Amazon, eBay, Walmart, Etsy) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through a marketplace, the marketplace handles your Michigan sales tax obligations. If you also sell directly, you need your own Michigan sales tax license.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Michigan Resale Certificates

Mistake 1: Using the Certificate for Non-Resale Purchases

Buying office supplies, company vehicles, or equipment with a resale certificate is the most common violation. Michigan auditors review purchase records and look for items that do not match the buyer's typical resale inventory.

Mistake 2: Confusing the Industrial Processing Exemption with Resale

Michigan's industrial processing exemption is separate from the resale exemption. Equipment and machinery used in manufacturing are exempt under the industrial processing rules, not the resale rules. Using the wrong exemption type on Form 3372 can create audit issues.

Mistake 3: Not Providing Certificates to Out-of-State Vendors

If you buy inventory from vendors in other states and have it shipped to Michigan, you should provide those vendors with a resale certificate (Form 3372 or the SST certificate). Without documentation, you may owe use tax on those purchases even if the items are genuinely for resale.

Mistake 4: Forgetting to File Use Tax Returns

Michigan businesses that purchase from out-of-state vendors who do not collect Michigan tax must report and pay use tax on non-exempt purchases. Many businesses overlook this obligation.

Michigan-Specific Rules You Should Know

Industrial Processing Exemption

Michigan offers a significant tax exemption for industrial processing. Equipment, machinery, and materials used or consumed in the process of manufacturing, converting, or refining a product for sale are exempt from sales and use tax. This is separate from (and in addition to) the resale exemption.

If your business both manufactures and sells products, you may benefit from both exemptions. Use the appropriate section on Form 3372 for each type of purchase.

The 6% Use Tax on Accommodations

Michigan imposes a separate 6% use tax on transient accommodations (hotels, motels, short-term rentals) in addition to the 6% sales tax. This means lodging can effectively be taxed at 12%. This does not directly affect resale certificate usage, but businesses in the hospitality industry should be aware of this additional tax.

Michigan Treasury Online (MTO)

Michigan's MTO portal is the central system for managing your sales tax account, filing returns, making payments, and checking your license status. All Michigan sales tax license holders should have an active MTO account.

Food for Resale

If you operate a restaurant or food service business in Michigan, you collect 6% sales tax on prepared food (served or takeout). Food purchased as ingredients for meals you prepare and sell qualifies for the resale exemption. Groceries sold in their unprepared state are exempt at the retail level.

Audit Cycle

The Michigan Department of Treasury typically audits businesses on a 3-year cycle, looking at 3 years of records at a time. Having properly documented resale certificates on file for every tax-exempt purchase is your best defense.

How Much Can You Save?

Michigan's flat 6% rate makes savings easy to calculate.

Use our savings calculator to calculate your exact savings.

Michigan Resale Certificate FAQs

Q: Does the Michigan resale certificate expire? A: Michigan does not print an expiration date on Form 3372. However, the certificate is only valid as long as the buyer's sales tax license is active. Sellers may request updated certificates periodically.

Q: Can I use the SST certificate instead of Form 3372? A: Yes. Michigan is an SST member state and accepts the SST certificate of exemption. Either form is valid.

Q: Is there a fee for a Michigan sales tax license? A: No. Michigan does not charge a fee for sales tax registration.

Q: Do local taxes apply in Michigan? A: No. Michigan has no local sales taxes. The rate is a flat 6% statewide.

Q: What if my supplier is in another state? A: If your out-of-state supplier does not collect Michigan tax, you owe use tax on the purchase unless it qualifies for the resale exemption. Provide the supplier with a resale certificate to document the exemption.

Get Started with Your Michigan Resale Certificate

Michigan's flat 6% rate and SST membership make the resale certificate process one of the most straightforward in the country. Get registered, complete your Form 3372, and start saving on every inventory purchase.

• Expert registration guidance
• Help completing Form 3372 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Michigan's requirements, visit our Michigan state page.

Michigan's simple flat rate and no local taxes mean your resale certificate savings are easy to predict and significant over time. Get your sales tax license, document your exemptions properly, and keep your records organized.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• Resale Certificate for Amazon Sellers - Michigan sellers on Amazon have specific considerations.
• Understanding Sales Tax Nexus - Learn when you are required to register in Michigan and other states.