Cost of selling
Michigan transfer tax, explained
Short answer
Michigan charges a real estate transfer tax when a home changes hands. The state tax is $3.75 per $500 of the sale price (0.75%), plus a county tax of $0.55 to $0.75 per $500. Combined, it comes to roughly 0.86% to 0.90% of the price — about $2,150 on a $250,000 home — and by custom the seller pays it.
How much is Michigan transfer tax?
The transfer tax has two parts, both charged per $500 of the sale price.
- State (SRETT): $3.75 per $500 of price, which works out to 0.75%
- County: $0.55 per $500 in most counties, or $0.75 per $500 in Wayne County (the state's largest)
- Combined: about $4.30 to $4.50 per $500, roughly 0.86% to 0.90% of the price
Who pays it — buyer or seller?
In Michigan the seller pays the transfer tax by custom, and it comes out of their proceeds at closing. It's technically negotiable, but a buyer covering it is unusual.
As a buyer, this matters mostly for your negotiations and your closing math: it's the seller's line, not yours. Your side of the ledger is covered in our Michigan closing-costs guide.
Exemptions and refunds
Some transfers are exempt from the state tax, including certain transfers between spouses or into a trust, and other categories set in the statute. There's also a refund provision for sellers of a principal residence in specific cases where the property's value didn't rise between purchase and sale.
Where transfer tax fits in the bigger picture
Transfer tax is a one-time cost at sale, separate from the yearly bill you'll owe as an owner. If you're buying, the recurring cost to plan around is Michigan property tax, not this.
Getting your full cash-to-close picture right is the point. Line the transfer tax up next to lender fees, title and prepaids in the closing-costs breakdown.
Frequently asked questions
How much is transfer tax in Michigan?
The state real estate transfer tax is $3.75 per $500 of the sale price (0.75%), plus a county tax of $0.55 to $0.75 per $500. Together that's roughly 0.86% to 0.90% of the price — about $2,150 on a $250,000 home.
Who pays transfer tax in Michigan, the buyer or the seller?
By custom the seller pays it, and it's deducted from their proceeds at closing. It's negotiable in theory, but buyers rarely take it on.
Are there exemptions from Michigan transfer tax?
Yes. Certain transfers — such as some between spouses or into a trust — are exempt, and there's a refund provision for sellers of a principal residence in specific cases. The rules are narrow, so confirm any exemption with your closing agent or a real estate attorney.
Is transfer tax the same as property tax?
No. Transfer tax is a one-time charge when the home is sold. Property tax is the recurring yearly bill you owe as the owner, based on your taxable value and local millage.