Credit card processing and merchant services in Michigan
Michigan charges one 6% sales tax everywhere and has no surcharge law, so checkout is simple. Gas stations have one extra rule about cash prices on their road signs.
Card surcharges
Surcharging allowedMichigan's Attorney General says no state law restricts card surcharges; Visa and Mastercard caps and their debit card ban still apply.
Sales tax
6% statewide, no local tax
Last checked
October 6, 2026
Michigan keeps the tax side simple. The sales tax is 6%, and the Department of Treasury says Michigan does not allow cities or other local units to impose a sales or use tax. A cafe in Grand Rapids and one in Marquette charge the same rate on the same sandwich, which makes running several locations easy.
Surcharges are just as clear, which is unusual. The Michigan Department of Attorney General says Michigan has no law that prohibits or restricts credit card surcharges, and no law that prohibits or restricts debit card surcharges. Don't read that as permission to surcharge debit. Visa and Mastercard forbid surcharges on debit and prepaid cards, cap credit card surcharges at 3% and 4%, limit them to your cost, and require you to post a notice at the door and the register and print the amount on each receipt.
Gas stations have one extra rule. Since July 2017, a station whose advertised fuel price depends on a condition, such as paying cash or buying a car wash, has to post that condition on the road sign next to the price, with equal illumination and lettering at least half the size of the price. If the big number on your sign is a cash price, the sign has to say so.
For most Michigan businesses, then, the savings are in the processing rate, not the tax setup. Interchange-plus pricing shows the card networks' cost and our markup separately, and a free statement review puts your current effective rate next to it. Fuel retailers can also see our automotive page, and our Detroit page has city figures.
What Michigan merchants should know
Credit and debit card surcharges
The Michigan Department of Attorney General says Michigan has no law that prohibits or restricts credit card surcharges, and likewise no law that prohibits or restricts debit card surcharges.
Card network rules still apply. Visa and Mastercard don't allow surcharges on debit or prepaid cards. On credit cards, Visa caps a surcharge at the lower of your merchant discount rate or 3% and requires 30 days' written notice to your acquirer, Mastercard caps it at the lower of your average effective rate or 4%, and Visa requires notice at the point of entry and the point of sale plus the amount on the receipt.
Sources: Michigan Department of Attorney General, Credit and debit card surcharges; Visa, U.S. Merchant Surcharge Q and A; Mastercard, Credit card surcharge rules and fees for merchants
Sales and use tax
Businesses that sell taxable goods to the final consumer remit a 6% sales tax on the total price of their taxable retail sales to the State of Michigan. Michigan does not allow cities or other local units to impose sales or use tax, so one rate applies statewide.
Source: Michigan Department of Treasury, Sales and use taxes
Gas price signs
Since July 2017, Michigan law requires gas stations whose advertised motor fuel price depends on one or more conditions, such as cash payment or a car wash purchase, to post those conditions on the road sign next to the price, with equal illumination and in lettering of the same style and at least half the size used for the price.
Sources: Michigan Department of Attorney General, Credit and debit card surcharges; Michigan Department of Agriculture and Rural Development, Gas price roadside sign regulations
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Common questions
Can Michigan businesses surcharge credit cards?
Yes. The Michigan Attorney General says the state has no law restricting credit card surcharges. The card networks still limit them: up to 3% on Visa and 4% on Mastercard, never more than your cost, with notice at the entrance and checkout and the amount on every receipt. Our surcharging program handles setup and disclosure.
Can a Michigan business add a fee for debit card payments?
State law doesn't stop it, according to the Attorney General, but Visa and Mastercard rules do. Neither network allows a surcharge on debit or prepaid cards, even when the customer runs the debit card as credit. Some businesses offer a cash discount instead; see dual pricing vs. surcharging.
Do Michigan cities charge their own sales tax?
No. The Michigan Department of Treasury says Michigan does not allow cities or other local units to impose a sales or use tax. Every location in the state charges the same 6% on taxable sales, so one tax setting on your POS terminals covers them all.
Can a Michigan gas station advertise a cash price on its sign?
Yes, if the sign shows the condition. Since July 2017, a station whose advertised price depends on paying cash or another condition must post that condition on the road sign next to the price, with equal illumination and in lettering at least half the size of the price.
Other states we serve besides Michigan
- Alabama
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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