Rates last verified: September 4th, 2026
Sources: Michigan Compiled Laws; Michigan Public Service Commission. Full citations at the bottom of this page.
Michigan looks simple on the surface: one 6% state rate under the Use Tax Act, with no separate telecom excise on the invoice. The work sits in the base tests and the 911 stack. The statute taxes intrastate calls, inbound and outbound interstate calls billed to a Michigan address, and a list of ancillary services, while it carves out internet access, prepaid calling, and 800 service. Then each of Michigan's 83 counties sets its own 911 surcharge, so the per-line total depends on where the customer sits.
Quick Facts
| Item | Michigan Treatment |
|---|---|
| State use tax on telecom | 6% on intrastate telecommunications services that originate and terminate in Michigan (MCL 205.93; MCL 205.93a(1)(a)) |
| Interstate telecom | Taxed at 6% when the service originates or terminates in Michigan and is billed to a Michigan service address or phone number; interstate private communications and international service excluded (MCL 205.93a(1)(c)) |
| Excluded from the telecom base | 800 service, coin-operated telephone service, fixed wireless service, prepaid calling service, telecommunications nonrecurring charges, internet access, and audio or video programming (MCL 205.93a) |
| State 911 charge | $0.25 per month per service user; prepaid wireless users excluded; charged on each of the first 10 access points or lines, then one charge per 10 (MCL 484.1401a) |
| County 911 surcharge | Up to $0.42 per month by county board resolution, up to $3.00 with voter approval; totals including technical charges run $0.82 to $3.82 effective July 1, 2026 (MCL 484.1401b; Michigan Public Service Commission) |
| Prepaid wireless 911 surcharge | 6% of each retail transaction since March 1, 2022; the seller collects, remits monthly, and keeps 2% (MCL 484.1401c) |
| Right-of-way maintenance fee | 5 cents per linear foot per year under the Metropolitan Extension Telecommunications Rights-of-Way Oversight Act (METRO Act); the provider pays it and the act bars recovery through end-user charges (MCL 484.3108) |
| Voice over Internet Protocol (VoIP) | The use tax definition of telecommunications service applies "without regard to whether that service is referred to as voice over internet protocol services" (MCL 205.93a(5)(s)); the 911 act's definition of communication service includes an interconnected VoIP device (MCL 484.1102(g)) |
| Internet access | Excluded from the definition of telecommunications service; also protected by the federal Internet Tax Freedom Act |
How Michigan Taxes Telecom Services
Michigan taxes telecom under the Use Tax Act rather than the sales tax, at the same 6% rate that applies to tangible goods. The tax falls on the person who uses or consumes the service, and the statute makes the provider collect it from the consumer and remit it. The intrastate base covers calls that both originate and terminate in Michigan, plus private communications services, conference bridging, 900 service, paging, pay telephone service other than coin-operated, and value-added nonvoice data services.
The interstate reach is the trap for out-of-state billing teams. Michigan taxes interstate service that either originates or terminates in the state when the charge is billed to a Michigan service address or phone number. A call from Detroit to Chicago, billed to the Detroit account, carries the 6% tax. The interstate side excludes interstate private communications service and international calls, and both sides exclude 800 service, coin-operated telephone service, fixed wireless service, prepaid calling service, and telecommunications nonrecurring charges such as installation.
The base has clean statutory edges. The definition of telecommunications service covers transmission of voice or data regardless of protocol, and it says the label VoIP changes nothing. It excludes internet access service, cable and other audio or video programming, digital products delivered electronically, answering services, and billing services for third parties. Bundles carry a books-and-records test: if taxable and nontaxable services ride on one nonitemized price, the whole charge is taxable unless the provider can split it from records kept in the ordinary course of business.
Two more rules shape compliance. Mobile wireless service is sourced to the customer's place of primary use, so a Michigan customer's plan is taxable in full no matter where the calls travel. And telephone companies pay a state-assessed property tax under 1905 PA 282, a tax on company property valued by the state rather than a charge on customer invoices.
911 And Other Per-Line Fees
The state 911 charge is 25 cents per month per service user. Providers bill it as a separate line item, collect it, and remit it quarterly to the Michigan Department of Treasury. Accounts with many lines get a break: the charge applies to each of the first 10 access points or lines, then once per 10 after that. Prepaid wireless users are excluded.
The county layer is where the totals move. A county board can add up to $0.42 per month by resolution, and voters can approve up to $3.00, with $3.00 as the combined cap. The supplier keeps 2% of the county charge to cover billing costs. On the Michigan Public Service Commission's table effective July 1, 2026, county charges run from zero to $3.00, and technical charges of $0.80 recurring and $0.02 nonrecurring ride on every line, so the monthly total per line spans $0.82 in counties like Antrim and Barry to $3.82 in counties like Genesee and Wexford.
Prepaid wireless pays at the register instead: a prepaid wireless 911 surcharge of 6% of each retail transaction, in effect since March 1, 2022. The surcharge is the consumer's liability, the seller collects and remits it monthly, and the seller keeps 2% for collection costs. A seller may skip the surcharge when a minimal amount of service, 10 minutes or $5.00 or less, is bundled with a device at one price.
One more cost sits off the invoice. Under the METRO Act, a provider occupying public right-of-way in a metropolitan area pays the state authority 5 cents per linear foot per year, with a 1-cent rate for cable providers. The act bars recovering this fee through rates and charges to end users; recovery runs through a credit against the provider's 1905 PA 282 property tax.
Taxability By Service Type
- Intrastate telecommunications services, including ancillary services such as voice mail, directory assistance, and conference bridging: taxable at 6%.
- Interstate service that originates or terminates in Michigan and is billed to a Michigan service address or phone number: taxable at 6%.
- Interstate private communications service and international calls: excluded.
- 800 service, coin-operated telephone service, fixed wireless service, prepaid calling service, and nonrecurring charges such as installation: excluded from the telecom use tax base.
- Mobile wireless service: taxable when the customer's place of primary use is in Michigan, regardless of where calls originate, terminate, or pass through.
- Prepaid wireless at retail: 6% prepaid wireless 911 surcharge per transaction; sales tax treatment of the airtime itself is data pending.
- Internet access and audio or video programming: excluded from the definition of telecommunications service; internet access is also protected by the federal Internet Tax Freedom Act.
- Sales for resale: the Use Tax Act exempts property purchased for resale and taxes telecom in the same manner as tangible personal property; confirm the service-resale mechanics with tax research.
How CereTax Handles Michigan
Michigan's difficulty is the county grid and the base tests. Every invoice needs the right county 911 surcharge for the customer's location, a use tax decision that turns on where the call originates and terminates and where the bill goes, and a separate path for prepaid. CereTax assigns each charge to the right county at the rooftop level, applies Michigan's base rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Michigan, book a demo and bring a real invoice.
For the full evaluation checklist, see what a telecom tax engine should do.
Sources
- MCL 205.93, Use Tax Act, 6% rate. Michigan Legislature. Accessed August 28, 2026.
- MCL 205.93a, Use Tax Act, taxed services, telecom definitions, and bundling rules. Michigan Legislature. Accessed August 28, 2026.
- MCL 205.93b, Use Tax Act, mobile wireless sourcing to place of primary use. Michigan Legislature. Accessed August 28, 2026.
- MCL 205.94, Use Tax Act, exemptions including property purchased for resale. Michigan Legislature. Accessed August 28, 2026.
- MCL 205.95, Use Tax Act, seller registration and collection from the consumer. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.1102, Emergency 9-1-1 Service Enabling Act, definitions. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.1401a, state 9-1-1 charge. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.1401b, county 9-1-1 charge. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.1401c, prepaid wireless 9-1-1 surcharge. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.1401f, 9-1-1 charge reduction proceedings. Michigan Legislature. Accessed August 28, 2026.
- MCL 484.3108, METRO Act maintenance fee. Michigan Legislature. Accessed August 28, 2026.
- MCL 207.4, 1905 PA 282, state assessment of telephone company property. Michigan Legislature. Accessed August 28, 2026.
- Michigan Public Service Commission, Michigan 911 Surcharges, rates effective July 1, 2026. Accessed August 28, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
