Skip to main content
Accelerated Information

Accelerated Information

Accelerated Information

Businesses that reach or exceed a tax liability threshold in the previous calendar year are required to pay tax electronically and on an accelerated schedule.

  • $720,000 or more in either Michigan sales tax or use tax liability. If the threshold is met for one tax, both tax types must be remitted on an accelerated schedule.
  • $480,000 or more in Michigan withholding tax liability.

Treasury reviews tax accounts annually to identify businesses with liabilities over and under these thresholds. For vehicle dealers, the $720,000 sales or use tax threshold is determined after payments made to Michigan Secretary of State on vehicle sales. Taxpayers will be notified in writing of an accelerated schedule change in April each year. Accelerated changes take effect in July each year.

There are many options for electronic payment, including Michigan Treasury Online. Accelerated taxpayers must file tax returns on a monthly schedule.

Payment Schedule for Accelerated Sales and Use Tax:

  • A pre-payment of 75 percent of the previous month’s tax liability or 75 percent of the same month’s liability for the prior tax year, whichever is less, is due by the 20th day of the current month.
  • A reconciliation payment is due on or before the 20th day of the subsequent month.

For more information, see MCL 205.56 and MCL 205.96.

Example: Sales and Use Tax Accelerated Payments Calculation

In a hypothetical January 2026 tax period for a taxpayer registered for sales tax and on an accelerated schedule:

  • The taxpayer's December 2025 sales tax liability was $1,000,000
  • The taxpayer's January 2025 sales tax liability was$1,500,000
  • The taxpayer elects to base the January 2026 prepayment on the December 2025 sales tax liability ($1,000,000) because it is the lesser tax obligation.
  • The taxpayer owes a $750,000 prepayment ($1,000,000 multiplied by .75) on or before January 20, 2026.
  • After the end of the month, the taxpayer's actual sales tax obligation for January 2026 is $1,225,000.
  • The taxpayer owes a reconciliation payment of $475,000 ($1,225,000 tax due minus $750,000 prepayment) on or before February 20, 2026.

Payment Schedule for Accelerated Withholding Tax:

  • An Accelerated Withholding Tax filer is required to remit withholding taxes to Michigan the same day as their federal payments are due, regardless of the amount due.
  • These requirements do not apply to a city or a county.

For more information, see MCL 205.19.

Instructions and FAQS

Other Related Forms