Published · Mike Certo, NMLS #260555
The Michigan transfer tax, explained: the seller pays, and one refund most people miss.
Michigan's transfer tax is straightforward until you learn the part that puts money back in a seller's pocket. The seller pays about $8.60 per $1,000, but a lot of sellers qualify for a refund of the biggest piece and never file for it. Here is how it works.
How much it is
Two pieces stack. The state charges $3.75 per $500 of price, which is 0.75%, and the county adds $0.55 per $500, another 0.11%. Combined, that is $8.60 per $1,000, or 0.86%. On a $299,000 home, the Michigan median, the total comes to about $2,571. The rate is the same statewide, so unlike states where the county changes everything, in Michigan your location barely moves the number.
Who pays it
The seller. Michigan's State Real Estate Transfer Tax is payable by the seller at the time the deed is recorded, and that custom holds everywhere in the state. For a buyer, that is one fewer line at closing. For a seller, it belongs in your net-proceeds math from the start, because on a higher-priced home it adds up quickly.
The refund most people miss
This is the part worth reading twice. If you sold a home where you had claimed the principal-residence exemption, and the property's state equalized value at sale was equal to or lower than its SEV when you bought it, Michigan lets you reclaim the state portion of the transfer tax. You file Form 2796 with the Department of Treasury, and you have four years and fifteen days from the sale to do it. The state portion is the larger of the two pieces, so this is not pocket change. Many sellers never claim it simply because no one at closing mentioned it.
Where the down payment help fits
The transfer tax is a seller cost, so it does not touch a buyer's closing directly. What does is the down payment plus 2% to 5% in closing costs, and that is where MSHDA's MI 10K DPA earns its keep. It gives up to $10,000 as a 0% deferred second loan, applied to down payment and closing, with no monthly payment. The down payment assistance guide shows how it pairs with a MI Home Loan.
Michigan transfer tax FAQ
Who pays the transfer tax in Michigan?
The seller. The State Real Estate Transfer Tax is payable by the seller when the deed is recorded, and that custom holds across Michigan. The combined state and county rate is about $8.60 per $1,000 of price, or 0.86%. On a $299,000 home that is roughly $2,571. For a buyer, the transfer tax is not part of your cash-to-close.
Can a Michigan seller get the transfer tax back?
Sometimes. If you claimed the principal-residence exemption and your home's state equalized value at sale was equal to or lower than its SEV when you bought, you can reclaim the state portion of the transfer tax. You file Michigan Form 2796 within four years and fifteen days of the sale. Since the state portion is the larger piece, the refund is worth pursuing.
How much is the Michigan transfer tax on a typical home?
The rate is $3.75 per $500 in state tax and $0.55 per $500 in county tax, which is $8.60 per $1,000 combined, or 0.86%. On the state median price of about $299,000 the seller pays roughly $2,571. The rate is uniform statewide, so your county does not change the total much.
Figures verified against the Michigan transfer-tax statute, county registers of deeds, and FHFA, August 2026. Confirm your county's figures with the register of deeds. This is not a commitment to lend.