Are digital goods taxable in Michigan?
It depends on what is downloaded. Non-software digital goods such as e-books, music and data are not taxable in Michigan however they are delivered. Downloaded prewritten software is taxable.
| Short answer | Content no; software yes |
|---|---|
| Authority | RAB 2023-10; MCL 205.51a |
| Last reviewed | 2026-09-30 |
Why
Revenue Administrative Bulletin RAB 2023-10 says non-software digital goods are not taxable however delivered. AgentTax treats downloaded content and data purchases as exempt in Michigan.
Prewritten computer software is different: Michigan defines it as software delivered by any means (MCL 205.51a), so a software download is taxable.
Business vs. consumer buyers
AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.
Where the line is
- A download that is actually prewritten software, including an app or tool the buyer installs, is taxable.
How AgentTax classifies digital goods
Downloads the buyer keeps: e-books, music, video, data files and other digital products transferred electronically. AgentTax routes downloads and data purchases to its digital good category.
Run a Michigan sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.
Open the calculatorFrequently asked questions
- Are e-books and digital music taxable in Michigan?
- No. Under RAB 2023-10, non-software digital goods are not taxable however delivered. Downloaded prewritten software is taxable.
Related
- All Michigan digital tax answers
- Is SaaS taxable in Michigan? (full guide)
- Are information services taxable in Michigan?
- Digital goods: every state we cover
- Are digital goods taxable in Arkansas?
- Are digital goods taxable in Georgia?
- Are digital goods taxable in Idaho?
- Are digital goods taxable in Indiana?
- Are digital goods taxable in Iowa?
- Are digital goods taxable in Kansas?
Sources
- RAB 2023-10
- MCL 205.51a
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.