Costs & insurance
Transfer tax
A tax on the transfer of real estate, paid in Michigan at $8.60 per $1,000 of the sale price — $7.50 to the state and $1.10 to the county — and by custom paid by the seller.
What does transfer tax mean?
Michigan's real estate transfer tax totals $8.60 per $1,000 of the purchase price: $7.50 per $1,000 to the state and $1.10 per $1,000 to the county. On a $285,000 sale that's about $2,451. By statute and custom the seller pays it, though everything in a purchase agreement is negotiable. It's one of the larger line items on the seller's closing statement and a reason sellers net less than the headline sale price suggests. Buyers rarely pay Michigan transfer tax outside of unusual REO or land-contract deals.
Common questions
Who pays transfer tax in Michigan?
By statute and custom the seller — $7.50 per $1,000 to the state plus $1.10 per $1,000 to the county, totaling $8.60 per $1,000 of the sale price.
How much is transfer tax on a Michigan home?
About $2,451 on a $285,000 sale. It's one of the larger line items on the seller's closing statement.
Do buyers ever pay Michigan transfer tax?
Rarely — mostly in unusual REO or land-contract deals. In a standard purchase the seller pays it, though everything in the agreement is negotiable.
Related terms