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.
How it breaks down
- State share: $7.50 per $1,000 of sale price
- County share: $1.10 per $1,000 of sale price
- Combined: $8.60 per $1,000 — about $2,451 on a $285,000 home
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. Everything is negotiable, but the seller paying is the default.
How much is transfer tax on a Michigan home?
About $2,451 on a $285,000 sale, calculated at $8.60 per $1,000 of the purchase price. It's one of the larger line items on the seller's closing statement and scales directly with the sale price.
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, so it can shift in an unusual transaction.
Related terms