Are information services taxable in Michigan?
No. Michigan does not tax information services, and data processing is not taxable either. Neither is an enumerated taxable service.
| Short answer | Not taxable |
|---|---|
| Authority | Auto-Owners Ins. Co. v. Dep't of Treasury, 313 Mich. App. 56 (2015); RAB 2023-10 |
| Last reviewed | 2026-09-30 |
Why
Michigan's sales and use taxes reach tangible personal property, including prewritten software, and do not enumerate information services or data processing. Revenue Administrative Bulletin RAB 2023-10 and Auto-Owners Ins. Co. v. Dep't of Treasury, 313 Mich. App. 56 (2015) support treating remote-access services as untaxed.
Data processing and pure remote-access SaaS get the same answer.
Business vs. consumer buyers
Because Michigan does not tax this category, buyer type does not change the answer.
Where the line is
- If a charge bundles downloadable prewritten software, Michigan's incidental-to-service test can pull the charge into tax.
How AgentTax classifies information services
Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.
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Open the calculatorFrequently asked questions
- Is data processing taxable in Michigan?
- No. Data processing, information services and pure remote-access SaaS are not taxed in Michigan.
Related
- All Michigan digital tax answers
- Is SaaS taxable in Michigan? (full guide)
- Are digital goods taxable in Michigan?
- Information services: every state we cover
- Are information services taxable in Arkansas?
- Are information services taxable in California?
- Are information services taxable in Connecticut?
- Are information services taxable in Florida?
- Are information services taxable in Georgia?
- Are information services taxable in Idaho?
Sources
- Auto-Owners Ins. Co. v. Dep't of Treasury, 313 Mich. App. 56 (2015)
- RAB 2023-10
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.