Credit card processing and merchant services in Detroit, MI
Detroit businesses charge Michigan's 6% sales tax and nothing more, so the bigger savings sit in your card processing rate. Here are the city's numbers and the rules that apply.
Detroit grew between 2020 and 2025. The Census Bureau's July 2025 estimate puts the city at 649,095 people, 1.5% above its April 2020 base, and the 2022 Economic Census counted $5.5 billion in retail sales inside city limits. Hospitals, clinics and other health and social assistance providers brought in $8.3 billion, and hotels, restaurants and bars $2.7 billion.
The tax setup is simple. Michigan's sales tax is 6%, and the state doesn't let cities add their own, so a Detroit restaurant charges the same 6% on a taxable meal as a restaurant in any Michigan suburb. One rate on your terminal covers every location you have in the state.
Surcharging follows from Michigan's lack of a statute. The Attorney General says no state law restricts credit or debit card surcharges, which hands the rulebook to Visa and Mastercard: a Visa surcharge tops out at 3% and a Mastercard one at 4%, neither can exceed what you pay to process, and debit or prepaid cards can't be surcharged.
So the money in Detroit is in the processing rate. As an example, a restaurant processing $60,000 a month that moves from a 3.2% effective rate to 2.6% on interchange-plus pricing saves $360 a month, about $4,300 a year. Your numbers will differ, and a free statement review works them out from your own statement. If you run a restaurant, our restaurant payment processing guide covers tips, surcharges and terminals.
Statewide rules and sources are on our Michigan page.
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Common questions
What is the sales tax rate in Detroit?
6%. Michigan's Department of Treasury says the state doesn't allow cities or other local units to impose a sales or use tax, so Detroit businesses charge the same 6% state rate on taxable sales as businesses anywhere else in Michigan.
Can Detroit restaurants add a credit card surcharge?
Yes. Michigan has no surcharge law, and the Attorney General's office says so directly. A Detroit restaurant can add a credit card surcharge up to its cost, within Visa's 3% and Mastercard's 4% caps, with notice at the door and at the table or counter and the amount on the receipt. Visa also wants 30 days' notice to your acquirer.
How much could a Detroit business save on processing?
It depends on your card mix and current pricing. For example, a shop processing $25,000 a month that moves from a 3.4% effective rate to 2.8% saves $150 a month, or $1,800 a year. A free statement review uses your real statement instead of an estimate.
Can I take card payments at Detroit markets and events?
Yes. Mobile payments with tap to pay or a mobile card reader let you take cards at a stall or a pop-up. Michigan's 6% sales tax applies to taxable sales there just as it does in a store, and there's no city rate to add.
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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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