Michigan charges a state real estate transfer tax and a county transfer tax on most property sales, calculated on the sale price and usually paid by the seller at closing.
How the tax works
The tax is based on the sales price, with separate state and county rates. Your title company calculates the exact amount on your settlement statement, and it varies slightly by county.
Possible exemptions
Some transfers, such as certain transfers between family members or specific legal situations, may be exempt. Always confirm with your title company or attorney rather than assuming.
Plan for it
Include transfer tax in your net sheet when deciding on a listing price. Seeing it in advance prevents surprises at the closing table.
Frequently Asked Questions
Is the transfer tax deductible?
It may affect your cost basis for tax purposes. Ask a tax professional.
Does the buyer pay any of it?
Sometimes by negotiation, but the seller customarily pays.
Where do I see the amount?
On your closing disclosure or settlement statement.
Talk to The Saward Team
The Saward Team helps buyers and sellers across Downriver Michigan with local pricing, honest advice, and a clear plan. Call or text 734-322-3302, see what your home is worth, browse our buyer services or seller services, or read more answers on our FAQ page. This article is general information, not legal, tax, or financial advice; consult a licensed professional about your situation.