The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
4. How is the sales factor computed?
To compute the sales factor, divide the total sales in Michigan during the tax year by the total sales everywhere during the tax year. The sales factor is generally computed for each business entity separately. Complete a Michigan Schedule of Apportionment (Form MI-1040H) for each business entity, unless the eligible taxpayer has elected to combine apportionment of unitary entities. MCL 206.121