Property tax, transfer tax and closing costs in Michigan

Michigan: State real estate transfer tax of $3.75 per $500 (0.75%) plus county transfer tax of $0.55 per $500 (0.11%), 0.86% combined. Seller pays by statute. Annual assessment as of December 31. Taxable value grows no more than inflation or 5% until a transfer of ownership, when it uncaps to the state equalized value.

Reviewed October 15, 2026. Every line links its statute or official source.

What Michigan sets

Transfer tax: State real estate transfer tax of $3.75 per $500 (0.75%) plus county transfer tax of $0.55 per $500 (0.11%), 0.86% combined. Source: legislature.mi.gov
Who customarily pays: Seller pays by statute. Source: legislature.mi.gov
Local transfer taxes: Not stated. No official source confirmed this yet.
Reassessment cycle: Annual assessment as of December 31. Taxable value grows no more than inflation or 5% until a transfer of ownership, when it uncaps to the state equalized value. Source: michigan.gov
Homestead and other exemptions: Principal residence exemption excludes an owner-occupied home from up to 18 mills of local school operating tax. Source: michigan.gov
Owner’s title policy: Seller customarily pays for the owner’s title policy. Source: michigan.gov
How closings run: Title company closings are customary. Source: michigan.gov
Survey: Not stated. No official source confirmed this yet.
Other closing customs: A buyer’s taxable value uncaps the year after the sale, so the first full-year bill can be well above the seller’s. Source: michigan.gov

Michigan transfer tax on a $232,000 sale

State real estate transfer taxseller pays$1,740$232,000 ÷ $500 = 464 units (rounded up for any fraction) × $3.75 = $1,740
County real estate transfer taxseller pays$255.20$232,000 ÷ $500 = 464 units (rounded up for any fraction) × $0.55 = $255.20

seller pays: $1,995.20
Total transfer tax: $1,995.20

Statutory transfer taxes on a $232,000 sale, as of the reviewed date. Who pays is custom and contract outside the statute’s primary liability. Local taxes described above are not in this figure unless listed as a line. Recording fees, title and attorney charges are separate.

Open the Michigan transfer tax calculator, with a link to share and an embed for your site.

Typical property tax in Michigan

Median real-estate tax paid: $2,904 a year
Per month: $242
Median owner-occupied home value: $231,600
Effective rate they imply: 1.25%

Census American Community Survey five-year file, 2020-2024, tables B25103 and B25077, owner-occupied homes. The median bill rose 22% against the 2015-2019 file. An estimate for a typical home, not yours. Your bill depends on the parcel, its exemptions and the next reassessment.

For agents

Your buyers ask what closing costs in Michigan and who pays. This page answers from the statute, with the date it was checked. Send it, or embed the calculator on your own site.

Ike lets a licensed real estate agent originate the mortgage on the deals they already close. Expected compensation is about 100 basis points per eligible funded loan once licensed and sponsored. Ike is preparing licenses state by state.

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One email when Michigan rates, exemptions or transfer taxes change, and when the next reassessment lands.

Sources

Ike Mortgage LLC. NMLS ID pending. For licensing information, go to: www.nmlsconsumeraccess.org. Nothing on this page is a loan payment, rate, term or down payment, and nothing here is a Loan Estimate.