Updated · Mike Certo, NMLS #260555
Michigan Transfer Tax and Closing Costs (2026)
Michigan's transfer tax lands on the seller, not the buyer, and it runs about $8.60 per $1,000 of price. There is also a refund a lot of sellers miss. Here is how the state and county pieces work, who pays, the principal-residence refund, and where it all fits in your closing.
How much is the transfer tax in Michigan?
Two pieces stack. The state charges $3.75 for every $500 of price, which is 0.75%. The county adds $0.55 per $500, another 0.11%. Together that is $8.60 per $1,000, or 0.86% of the sale price. On a $299,000 home the seller pays about $2,571 in transfer tax. The rate is the same across the state, so unlike some states, where you live does not change the math much.
Who pays it, buyer or seller?
The seller. Michigan's State Real Estate Transfer Tax is payable by the seller when the deed is recorded, and that custom holds across the state. For a buyer, that means the transfer tax is not a line in your cash-to-close. For a seller, it is worth building into your net proceeds early, because on a higher-priced home it adds up.
The refund many sellers miss
Here is the part that saves real money. If you sold a home where you had claimed the principal-residence exemption, and the property's state equalized value at the time of sale was equal to or lower than its SEV when you bought it, you can get the state portion of the transfer tax back. You file Michigan Form 2796 with the Department of Treasury, and you have four years and fifteen days from the sale to do it. On a typical sale the state portion is the larger of the two pieces, so this refund is not small. Many sellers never claim it because no one told them it exists.
What else is in Michigan closing costs?
The transfer tax is a seller line, so a buyer's costs sit elsewhere. Expect roughly 2% to 5% of the price on the buyer side, depending on your loan and county. The usual pieces:
- Title insurance and search at Michigan rates, plus settlement and escrow fees.
- Lender and third-party fees (appraisal, credit, flood certification) itemized on your Loan Estimate.
- Prepaids and escrows for homeowners insurance and property taxes.
- Recording fees charged by the county register of deeds.
The MI 10K DPA is built for the buyer side of this. It gives up to $10,000 toward down payment and closing as a 0% deferred loan, so it can absorb much of what a buyer brings to the table. The down payment assistance page shows how it layers with a MI Home Loan.
When does a Michigan purchase become a jumbo loan?
Above $832,750. That is the 2026 conforming limit, and in Michigan it applies in every one of the 83 counties, because no Michigan county qualifies as high-cost. Cross the limit and you are in jumbo territory, with stricter underwriting and usually a larger down payment. In Ann Arbor and the wealthier Oakland County suburbs it comes up; across most of the state it is rare. Mike runs both agency and jumbo, so a price near the line does not force a scramble.
Michigan transfer tax FAQ
How much is the transfer tax in Michigan?
Michigan charges $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% of the price. On a $299,000 home that is about $2,571. The rate is the same statewide, so your county does not change the total much.
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 is the custom across Michigan. For a buyer it means the transfer tax is not part of your cash-to-close. A seller should build it into their net proceeds, since on a higher-priced home it is a real number.
Can a Michigan seller get the transfer tax refunded?
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. The state portion is the larger piece, so the refund is worth pursuing.
What is the 2026 conforming loan limit in Michigan?
$832,750 on a one-unit home in every Michigan county for 2026. Michigan has no high-cost conforming county, so the same limit applies statewide, from Detroit to the Upper Peninsula. Above it, a Michigan loan is a jumbo, which carries stricter underwriting and typically a larger down payment.