Detroit hotel guests pay roughly 15% in combined taxes: 6% Michigan sales tax, 2% Detroit excise, 5% Stadium District tax, and 2% Tourism Improvement Authority assessment, layered on the room rate.
Detroit-area hotel and motel stays under 30 days carry one of the highest layered lodging tax rates in Michigan. The base 6% Michigan sales tax applies first. Detroit then adds a 2% city excise under MCL 141.861 et seq., a 5% Stadium District tax serving Wayne County venues, and a 2% Tourism Improvement Authority assessment funding regional marketing. Hotels collect taxes at booking and remit monthly to the Michigan Treasury and Wayne County. Short-term rentals operating commercially face the same lodging excise treatment, though Detroit's primary-residence STR ordinance limits unhosted nights.
Operators failing to collect or remit hotel taxes face state Treasury audits, back-tax assessments with penalties up to 25%, interest charges, and potential loss of business license under Detroit Title 21.
Detroit, MI
Detroit STRs collect the Michigan 6% Use Tax on transient lodging and the Wayne County 2% Hotel and Motel Accommodations Tax. Total tax burden 8%. Airbnb and...
Detroit, MI
Detroit requires a short-term rental license from BSEED at $500/year. Properties must be owner's principal residence. Non-owner-occupied STRs banned in many ...
See how Detroit's transient occupancy tax rules stack up against other locations.
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