Michigan Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

Michigan charges two transfer taxes, and the statutes make the seller or grantor liable for both: a state tax of $3.75 per $500 and a county tax of $0.55 per $500 in most counties. Together that is $4.30 per $500, or $2,580 on a hypothetical $300,000 sale, before commission and payoff.

The two transfer taxes in a Michigan sale

Michigan stacks a state tax and a county tax on the same deed. Both are written into statute as the responsibility of the seller or grantor, and both are based on the value of the property transferred.

Michigan Compiled Laws, under the State Real Estate Transfer Tax Act, sets the state rate at $3.75 for each $500, or fraction of $500. The county Real Estate Transfer Tax Act sets 55 cents for each $500, or fraction of $500, in a county with a population under 2,000,000. In a county with 2,000,000 or more residents, the county board may authorize up to 75 cents.

Rate table

Tax	Rate per $500	Who is liable
State transfer tax	$3.75	Seller or grantor
County transfer tax (under 2,000,000 residents)	$0.55	Seller or grantor
County transfer tax (2,000,000 or more)	Up to $0.75	Seller or grantor

Worked example on a hypothetical $300,000 sale

The tax applies to each $500 or fraction of $500, so $300,000 is 600 units.

State: 600 x $3.75 = $2,250
County at 55 cents: 600 x $0.55 = $330
Total: $2,580

At the county maximum of 75 cents the county piece would be $450 and the total $2,700. Confirm which rate your county uses.

Exemptions

Both statutes list exemptions. They include instruments where the consideration is under $100, conveyances between spouses that create or end a tenancy by the entireties, and, in the state act, a conveyance from an individual to that individual’s child or grandchild. Instruments given as security, certain foreclosure-related transfers involving governmental lenders, and court-ordered transfers without stated monetary consideration also appear. A flip or wholesale sale with real consideration generally does not fall into these categories, but your title company decides.

The same math at other prices

Hypothetical price	Units of $500	State at $3.75	County at $0.55	Total
$200,000	400	$1,500	$220	$1,720
$300,000	600	$2,250	$330	$2,580
$400,000	800	$3,000	$440	$3,440
$500,000	1,000	$3,750	$550	$4,300

These use the standard 55-cent county rate. A county that has authorized a higher rate, up to 75 cents where the statute allows it, will cost more.

The other seller costs

Agent commission. Negotiable.
Mortgage payoff. Your balance plus interest through the payoff date.
Property tax proration. Set by your contract and shown on the closing statement.
Title insurance and recording. We did not source whether Michigan promulgates title insurance rates, so ask your title company.
Who pays what beyond the transfer tax. Set by your purchase contract. Ask your title company or closing attorney what is customary locally.

What this means for investors

At roughly 0.86% of price under the standard county rate, the Michigan tax is worth tracking on every exit. A flipper pays it as the seller on the resale. On the purchase side, the person who sold to you was the liable party under the statute.

A double close means two closings and two sets of costs. In the second closing you are the grantor, so the tax applies to your deed as well as to the first one. An assignment uses a single closing. Ask your title company how the tax would be assessed on your structure.

For your maximum allowable offer, subtract the transfer tax on the resale, plus commission and holding costs, from your after-repair value. On a $300,000 exit that is $2,580 off the top. If your county sets a higher rate, the number gets larger, so always check the county first.

Questions to ask your title company

What is the exact transfer figure for my price, county and deed type?
Does any exemption apply to my transfer, and what paperwork proves it?
What does my contract say about who bears the tax, and is that customary here?
If I am using a double close or an assignment, how is the tax computed on each document?
Are there local or recording charges that are not in the state schedule?

Get these answers in writing before you set a list price or submit an offer. A number that is off by a few hundred dollars can decide a thin deal.

Run your numbers

Automize CRM includes a closing cost calculator for modeling a sale before you list or make an offer.

This is general information, not legal or tax advice. Confirm your exact figures with your title company or closing attorney.

Sources

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

Who pays the transfer tax in Michigan?

Under both the State Real Estate Transfer Tax Act and the county Real Estate Transfer Tax Act, the person who is the seller or grantor is liable for the tax. The state act also lets a buyer who paid on the seller’s behalf request a refund in certain exemption cases. Your contract controls anything different.

What is the Michigan state transfer tax rate?

The State Real Estate Transfer Tax Act sets the rate at $3.75 for each $500, or fraction of $500, of the total value of the property transferred. That equals 0.75% of value. The tax is collected when the instrument is submitted for recording, and a county tax is charged on top of it.

How much is the Michigan county transfer tax?

The county Real Estate Transfer Tax Act sets 55 cents for each $500, or fraction of $500, in a county with fewer than 2,000,000 residents. A county with 2,000,000 or more residents may authorize up to 75 cents per $500. Ask your title company which rate your county charges.

Are there exemptions from Michigan transfer tax?

Yes. The statutes exempt, among others, instruments with consideration under $100, transfers between spouses that create or end a tenancy by the entireties, and certain conveyances to a child or grandchild. Exemptions have conditions, so confirm with your title company or closing attorney before assuming one applies.