Do you have to pay sales tax if buy a car from private party in Michigan?

In the state of Michigan, the answer is yes. According to the Michigan Department of State, sales tax is required on the purchase price of a vehicle, regardless of whether the purchase is made from a dealer or a private party. The sales tax rate in Michigan is 6%. To calculate the sales tax on a vehicle purchase, multiply the purchase price by 0.06. For example, if the purchase price of a vehicle is $10,000, the sales tax would be $600 ($10,000 x 0.06).