# Michigan — Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference

For Michigan, trade-in credit allowed is capped credit; credit cap, if any is $12,000 or the agreed-upon value of a motor vehicle (whichever is less), recorded from its source on 2026-08-19.

- **State:** Michigan _(our reading, not quoted from the source)_
- **Trade-in credit allowed:** capped credit _(our reading, not quoted from the source)_
- **Credit cap, if any:** $12,000 or the agreed-upon value of a motor vehicle (whichever is less) _(verified: appears in the quote below)_

## What the source says

> Motor Vehicles: $12,000 or the agreed-upon value of a motor vehicle (whichever is less). This tax reduction is only applicable on a motor vehicle traded in for the purchase of a new or used motor vehicle or recreational vehicle from a licensed dealer.

## Source

- https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/SUW/TY2026/485_11-25.pdf

Last verified: 2026-08-19. Review by: 2027-08-19.
Part of [Vehicle trade-in sales tax credit rules by state -- full price taxed, or only the difference](https://referencesource.org/vehicle-trade-in-sales-tax-credit-by-state/).