Average Transfer Tax in Michigan (2026 Data)
Last updated: 2026-04-04
Michigan transfer tax benchmark
| Range | Low | Typical | High | Flag Above |
|---|---|---|---|---|
| Transfer Tax | $0.00/thousand | $2.00/thousand | $10.00/thousand | $15.00/thousand |
Based on Michigan closing cost data. Median home price: $255,000. Rates shown per $1,000 of coverage or sale price.
What the transfer tax covers
Transfer taxes (also called deed stamps, documentary stamps, or excise taxes) are taxes imposed by state, county, or city governments when real property changes hands. The tax is typically calculated as a rate per thousand dollars of the sale price. Transfer taxes appear in Section E of your Closing Disclosure.
Transfer tax rules vary enormously by state. About 13 states impose no transfer tax at all (including Texas, Indiana, and Wyoming). Others charge modest rates ($1 to $3 per thousand). A few states and cities have very high rates — New York City's combined transfer taxes can exceed 2% of the sale price.
This fee appears in Section E — Taxes and Other Government Fees of your Closing Disclosure.
Is the transfer tax negotiable in Michigan?
Transfer taxes in Michigan are set by law and non-negotiable. They are customarily paid by the seller. Who pays can be renegotiated in the purchase contract.
Michigan note
Michigan state transfer tax (MCL 207.525): $3.75 per $500 of purchase price ($7.50/$1,000), paid by seller. County transfer tax: $0.55 per $500 ($1.10/$1,000), paid by seller. Combined: $4.30 per $500 ($8.60/$1,000), seller pays both. Both state and county transfer taxes are paid by the seller. Principal Residence Exemption: if the seller claimed a PRE on the property AND the sale price does not exceed what the seller originally paid (SEV at sale ≤ SEV at acquisition), the state transfer tax ($7.50/$1,000) is exempt — seller files Form 2796 for refund within 4 years 15 days of closing. The county transfer tax ($1.10/$1,000) still applies even when state tax is exempt. No first-time homebuyer transfer tax exemption exists in Michigan.
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Red flags: signs your transfer tax is inflated
Transfer tax rate doesn't match the published state or county rate for your jurisdiction
Transfer tax charged in a state that has no transfer tax
Buyer is being charged a transfer tax that is customarily paid by the seller in that state
City or county transfer tax is missing when the jurisdiction imposes one
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Transfer Tax questions
Does every state have a transfer tax?
No. About 13 states have no transfer tax at any level — including Texas, Indiana, Wyoming, Montana, Idaho, Mississippi, Missouri, New Mexico, North Dakota, Utah, Alaska, Louisiana, and Oregon.
Who pays the transfer tax — buyer or seller?
It depends on the state and the contract. In many states, the seller customarily pays. In others, it's the buyer or split. The purchase contract can override local custom, so check your agreement.
Can transfer taxes be negotiated?
The tax rate itself cannot be negotiated — it's set by law. But who pays it can be negotiated in the purchase contract. Some buyers successfully negotiate for the seller to cover transfer taxes as a concession.
Related pages
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