Michigan levies a real estate transfer tax with two layers, both paid at recording: (1) State Real Estate Transfer Tax (SRETT) of $3.75 per $500 of consideration (0.75% of sale price), and (2) a County Transfer Tax of $0.55 per $500 (0.11%) that nearly all 83 counties levy at that default rate. Combined standard rate is $4.30 per $500 of value, i.e. $8.60 per $1,000, or about 0.86% of the sale price. State law (MCL 207.505) permits counties with population over 2 million to charge up to $0.75 per $500 for the county portion, but no Michigan county currently has that population (Wayne County, the largest, is under 1.8 million), so 0.86% combined is effectively the statewide rate. Transfers under $100 in value are exempt, and there are statutory exemptions (e.g., certain transfers where state equalized value hasn't increased, transfers between spouses, into a trust for the grantor's benefit, etc.) that can reduce or eliminate SRETT liability — sellers commonly file for a SRETT refund/exemption when applicable.
Buyers: roughly 2%-5% of purchase price (mostly loan-related fees: origination, appraisal, title insurance/lender's policy, prepaid escrow items, recording fees). Sellers: roughly 1%-3% of sale price excluding agent commissions (transfer taxes, owner's title policy, recording/settlement fees) — but total seller-side costs including real estate agent commissions commonly run 6%-10% of sale price, since average combined Michigan agent commission is roughly 6% (about 3% listing side + 3% buyer's agent side).
Who typically pays: Local convention in Michigan: the SELLER customarily pays both the state and county transfer tax, and this is nearly universal by custom (not statute — it's negotiable but almost always follows this norm). The seller also typically pays for the owner's title insurance policy and their own agent's commission (and often the buyer's agent commission too, out of sale proceeds, per typical listing agreements). The BUYER typically pays their own mortgage/lender-related closing costs (loan origination, underwriting, appraisal, lender's title policy, prepaid interest/escrow, recording fee for the deed/mortgage). Specific allocations remain negotiable in the purchase agreement and can shift with market conditions (e.g., buyer's markets sometimes see sellers asked to cover more buyer costs as concessions).
No county or city in Michigan imposes its own separate local transfer tax on top of the state + county SRETT structure (unlike some other states) — Detroit, Ann Arbor, Grand Rapids, etc. all just use the standard state+county combined 0.86% rate; sites branding "Detroit transfer tax calculators" are just calculating the same statewide formula for that city, not a distinct city tax. There is no Michigan "mansion tax" or supplemental high-value-transfer surcharge. The main real variation to flag is the statutory allowance for a higher county rate (up to $0.75/$500) in counties over 2 million population, which is currently theoretical/unused since no Michigan county meets that population threshold. Also note SRETT exemptions/refunds (e.g., MCL 207.526) are a genuine and commonly-used cost-reduction mechanism worth mentioning to sellers, distinct from any "who pays" custom question.
Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.