Michigan car tax
Michigan's yearly registration fee works as a value-based car tax. For 1984 and newer cars it is set from the original list price (MSRP) and drops 10% at each of the first three renewals. There is no separate local car property tax.
MCL 257.801(1)(p). Registration tax for 1984 and newer passenger vehicles, by the manufacturer's suggested base list price: $36 up to $6,000, then $40 for $6,001–$7,000 and $6 more for each $1,000 up to $178 at $30,000, plus $6 for each $1,000 (or fraction) over $30,000. The second registration pays 90% of the first-year tax, the third 81%, and the fourth and later 72.9%. For a used or newly arrived car, the year is the registration year minus the model year (0 or less = first, 1 = second, 2 = third, 3+ = fourth). Over $250,000, add $6 per $1,000 above the amount shown.
Michigan car tax calculator
- MSRP $35,000 (Over $34,000–$35,000), vehicle age 2 yr: $168.48 from the state table
Based on the manufacturer's original list price (MSRP), not what you paid. Your bill may be prorated for months you owned the car.
How the tax drops as a $35,000 car ages in Michigan
Same car, each year of ownership. The rate falls as the car gets older.
Buying a car in Michigan: one-time tax
Michigan sales/use tax — 6%. Your trade-in is subtracted before tax.
The trade-in credit is capped.
Registration and due dates
The registration tax is value-based as described above, plus EV and hybrid fees. A title costs $15.
Paid every year on the owner's birthday, with registration renewal.
Cut what your car costs in Michigan
Car tax is set by your town, but your loan and insurance aren't. Refinancing a car loan at a lower rate often saves more each year than the tax itself.
Questions
Does Michigan tax cars every year?
Yes, through the registration fee, which is based on the car's original list price.
Does the fee go down as my car ages?
It drops 10% at each of the first three renewals, then stays flat.
Can I deduct Michigan car taxes on my federal return?
Yes, the value-based part is deductible. Michigan's yearly car tax is based on the car's value, so it can be claimed as personal property tax if you itemize on your federal return (subject to the SALT cap). Flat registration fees are not deductible.
Sources
Last checked October 14, 2026. Rates are for passenger cars owned by individuals; leased, business and specialty vehicles can differ. Confirm with your tax collector or commissioner of the revenue.