New Year Reminders and Updates

Sales Tax on the Difference

Beginning Jan. 1, 2025, owners trading in a motor vehicle receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $11,000. This amount increases $1,000 annually and is based on the delivery date of the vehicle. [FAQ]

Documentary Preparation Fee

DIFS is reviewing the prior-year consumer price index to determine if Michigan’s doc fee will be adjusted for 2025/2026. Until a determination is announced, the current fee remains in place. [link]

Obsolete CVR Tabs

Obsolete 2024 tabs must be returned to the CVR Warehouse by Jan. 20, 2025. See this handout with steps to return unused inventory and properly mark 2024 tabs as obsolete.

Minimum Wage

On Jan. 1, 2025, Michigan’s minimum wage rate increased to $10.56 per hour. Effective Feb. 21, 2025, the rate increases again to $12.48. [link]

EV Registration Fees

As of Jan. 1, 2025, the Michigan Motor Fuel Tax Act increased the fuel tax, which also increased the registration fees for plug-in hybrid and EVs. The fee increase is $3 for PHEV and $5 for electric vehicles. [fee breakdown]

Unemployment Insurance Taxes

Effective Jan. 1, employers will be taxed on a smaller portion of the wages they pay to employees. When calculating first quarter payments, qualified employers will be taxed on the first $9,000 in wages per employee (down from $9,500). [link]

Dealer Plates | Tabs

Previous-year tabs for dealer plates remain active through the last day of February (Feb. 28, 2025). MDOS continues to mail dealer-plate tabs for the new year.

Sales Tax and Out-of-State Buyers

2025 instructions for Michigan vehicle dealers collecting sales tax from buyers who will register and title their vehicle in another state or country. [link]