Michigan Treasury Announces Fuel Tax Changes Effective January 2026

The Michigan Department of Treasury issued a notice announcing changes to fuel tax, effective Jan. 1, 2026. The prepaid sales tax on motor fuel will cease from the effective date, while the sale, use, storage, or consumption of eligible fuel will be exempt from sales and use tax. The notice also provides details on claiming credits for prepaid sales tax paid before Jan. 1, 2026, as well as a one-time floor inventory tax on gasoline and undyed diesel fuel held in storage as of Dec. 31. It also outlines an increase in the Motor Fuel Tax Act rate, which will ...