Following is a brief overview of Michigan-specific business operations for the upcoming year. Please click the links provided for further information.
Sales Tax on the Difference. Owners trading in a motor vehicle now receive a sales tax credit for the vehicle’s trade-in value up to a maximum of $12,000. [FAQ]
Sales Tax and Out-of-State Buyers. 2026 guidance on Michigan sales tax due when a non-Michigan resident takes delivery in Michigan but will register in another state. [link]
EV Registration Fees. The Michigan Motor Fuel Tax Act increases the fuel tax, requiring an increase in the registration gas tax fees for PHEV and EVs. [MDOS bulletin] Vehicles 8,000 lbs or less:
- Hybrid / PHEV surcharge: $113 in addition to vehicle registration fee ($53 increase)
- EV surcharge: $267 in addition to vehicle registration fee ($107 increase)
- Reminder – for alternative fueled vehicles, indicate fuel type on RD-108
MDOS Compliance Checklists
Dealer Plates | Tabs. Previous-year tabs for dealer plates remain active through the last day of February (Feb. 28, 2026). MDOS continues to mail new tabs.
Recreation Passport. The passenger vehicle fee is now $15 for 1-year and $29 for 2-years. [link]
Doc Fee ~ no change. DIFS last reviewed this fee in 2025. The max. allowable of $280 will remain in place for 2026. DIFS will next review in 2027. [link]
State of Michigan Holidays. Please reference this link for a list of days that SOS branch offices will be closed in 2026.
Minimum Wage. The minimum wage in Michigan is now $13.73 per hour. [link]
Fuel Tax Changes. A 52.4 cents per gallon motor fuel tax rate is in effect, as part of transportation funding reform. [link]
Penny Phase Out. Michigan sales and use tax notice regarding rounding up or down to the nearest $0.05. [link]
