Michigan Sales Tax On Software Maintenance May 2026

Always break out installation, support, and training charges from the software license fee to preserve exemptions.

Are you currently reviewing a or trying to determine if a specific SaaS product with a desktop agent is taxable? Michigan Sales Tax On Software Maintenance

AI responses may include mistakes. For financial advice, consult a professional. Learn more Michigan Sales Tax on Software and Digital Products Always break out installation, support, and training charges

Specific charges for technical support or for adapting prewritten software to a user's needs are exempt if they are separately stated and identified on the invoice. For financial advice, consult a professional

When a transaction includes both taxable software and exempt services, Michigan uses this test to determine if the primary "object" of the sale is a service or a product. If the software is merely incidental to a professional service, the whole transaction may be exempt. Compliance Tips To protect against audit risks, businesses should:

Maintenance contracts for custom software (designed for a specific user's needs) are generally considered non-taxable services. Critical Factors and Exemptions