Short-Term Rental Tax in Michigan (MI)
The state-level tax rate on short-term rentals in Michigan is 6.0% , consisting of 6.0% sales tax and 0.0% lodging tax. Michigan applies general sales and lodging taxes to STRs without STR-specific legislation. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Traverse City reaches 11.0%. STR operators must register with the state. Michigan charges a 6% state sales (use) tax on short-term rentals. No state lodging tax. Counties and cities may impose a local accommodations tax of up to 5%. STR operators must register for a sales tax license.
Annual Tax Estimate for Michigan
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Traverse City).
| Nightly Rate | Gross Revenue | State Tax (6.0%) | Traverse City Tax (11.0%) |
|---|---|---|---|
| $100.00/night | $23,700 | $1,422 | $2,607 |
| $150.00/night | $35,550 | $2,133 | $3,911 |
| $200.00/night | $47,400 | $2,844 | $5,214 |
| $300.00/night | $71,100 | $4,266 | $7,821 |
| $500.00/night | $118,500 | $7,110 | $13,035 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Michigan
Local taxes significantly impact the total STR tax burden in Michigan. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 11.0% in Traverse City.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Traverse City | 5.0% | 11.0% | $22.00 | Moderate | Grand Traverse County 5% accommodations tax. Popular vacation rental market. |
| Detroit | 5.0% | 11.0% | $22.00 | Moderate | Wayne County 5% accommodations tax. |
| Mackinac Island | 5.0% | 11.0% | $22.00 | Moderate | Mackinac County 5% accommodations tax. |
| Saugatuck | 5.0% | 11.0% | $22.00 | Moderate | Allegan County 5% accommodations tax. |
How Michigan Compares to Other States
Below is a comparison of Michigan with five states that have similar state-level STR tax rates. This comparison helps illustrate where Michigan stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Michigan (MI) | 6.0% | 6.0% | 0.0% | Yes | Required |
| Florida (FL) | 6.0% | 6.0% | 0.0% | Yes | Required |
| Idaho (ID) | 6.0% | 6.0% | 0.0% | Yes | Required |
| Maryland (MD) | 6.0% | 6.0% | 0.0% | Yes | Required |
| North Dakota (ND) | 6.0% | 5.0% | 1.0% | Yes | Required |
| Pennsylvania (PA) | 6.0% | 6.0% | 0.0% | Yes | Required |
Frequently Asked Questions About Michigan STR Taxes
What is the short-term rental tax rate in Michigan in 2026?
The state-level tax rate on short-term rentals in Michigan is 6.0%, consisting of 6.0% sales tax and 0.0% lodging tax. Local taxes can bring the total to 11.0% in cities like Traverse City. At $200/night with 65% occupancy, the state-level tax alone is approximately $2,844 per year.
Does Airbnb collect STR taxes in Michigan?
Yes. Airbnb, Vrbo collect state sales tax. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Michigan?
Yes. Michigan requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Michigan also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Traverse City, Michigan?
The total combined tax rate in Traverse City is 11.0%, which includes the 6.0% state rate plus 5.0% in local taxes. Grand Traverse County 5% accommodations tax. Popular vacation rental market. At $200/night with 65% occupancy, this amounts to approximately $5,214 per year in taxes.
How much will I owe in STR taxes in Michigan?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (6.0%), a property earning $200/night with 65% occupancy would owe approximately $2,844/year in state taxes alone. In Traverse City, the total tax at the same rate would be approximately $5,214/year. Use our STR tax calculator for a customized estimate.
Calculate Your Michigan STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Michigan. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.