Michigan Charges 0.86% to Transfer a House
Program and regulatory figures verified October 9, 2026. Details change; confirm your scenario with us.
A cost most physician buyers never ask about, because it is usually the seller's line. Worth knowing anyway, since "customarily" is not "always".
The two rates, from the statutes
MCL 207.525(1), verbatim: "Beginning on January 1, 1995, except as otherwise provided in this section, the tax imposed under sections 3 and 4 is levied at the rate of $3.75 for each $500."
MCL 207.504, verbatim: "The tax shall be at the rate of 55 cents in a county with a population of less than 2,000,000 and not more than 75 cents as authorized by the county board of commissioners in a county with a population of 2,000,000 or more for each $500."
| Level | Rate | As a percentage |
|---|---|---|
| State | $3.75 / $500 | 0.75% |
| County (under 2,000,000 population) | 55 cents / $500 | 0.11% |
| ★ Combined, ordinary case | ★ $8.60 / $1,000 | ★ 0.86% |
What it comes to
On a $400,000 Michigan purchase, 0.86% is about $3,440. At the Grand Rapids typical value of $357,283, about $3,073.
★ Those are the full combined amounts. They are customarily the seller's cost.
★★ The seller is liable by statute — but a buyer can pay it for them
This is more precise than "customarily", and the distinction matters.
MCL 207.523(2), verbatim: "The person who is the seller or grantor of the property is liable for the tax imposed under this act." That is a statutory liability, not a convention.
What the contract can move is who bears the cost, and the statute itself contemplates that. Section 207.523(4) refers to "the buyer who has paid the tax on behalf of the seller", so a buyer absorbing it is paying the seller's liability, not assuming their own.
★ Why a buyer should care: in a competitive offer, agreeing to cover it is a real concession at 0.86%: roughly $3,440 on a $400,000 house. Know the number before you offer it.
★ We are the lender, not your agent or your attorney, and we do not advise on contract terms. We tell you who the statute makes liable and what the line costs, so it is not a surprise at closing.
★ The 75-cent case, stated honestly
The statute authorises up to 75 cents per $500 in a county of 2,000,000 or more. We are not telling you which Michigan counties, if any, currently cross that threshold. We did not verify current county populations at a primary source, and publishing a guess about your county's rate would be worse than publishing nothing.
The statutory threshold is above. Your closing statement, or the register of deeds for your county, has the actual figure.
For contrast
Missouri, which we researched the same day, cannot create a transfer tax at all: its constitution prevents the state, counties and political subdivisions from imposing any new tax on the sale or transfer of real estate. Same purchase price, materially different closing. The Missouri provision.
Exemptions exist — and we are not listing them
Both statutes carry exemption schedules. They are long, fact-specific, and the wrong thing to summarise on a lender's website: an exemption you half-qualify for is worse than one you never heard of. Your title company and your attorney apply them.
Mike Certo, NMLS #260555. (480) 296-6513. Not legal or tax advice.
Frequently asked questions
What is the real estate transfer tax in Michigan?
A state tax of $3.75 for each $500 of consideration under Michigan Compiled Laws section 207.525, in force since January 1, 1995, plus a county tax of 55 cents for each $500 under section 207.504 in a county with a population under 2,000,000. Combined that is $8.60 per $1,000, or 0.86 percent.Who pays the transfer tax in Michigan, buyer or seller?
The seller. Michigan Compiled Laws section 207.523 subsection 2 provides that the person who is the seller or grantor of the property is liable for the tax, which is a statutory liability rather than a convention. The purchase contract can shift who bears the cost: the same section refers to a buyer who has paid the tax on behalf of the seller. On a $400,000 purchase the combined 0.86 percent is roughly $3,440.Can a Michigan county charge more than 55 cents per $500?
The statute authorises up to 75 cents for each $500, as approved by the county board of commissioners, in a county with a population of 2,000,000 or more. Counties below that population are at 55 cents. Your county's register of deeds or your closing statement carries the rate that actually applies.How much is Michigan transfer tax on a $400,000 house?
About $3,440, being 0.86 percent of the price, combining the state rate of $3.75 per $500 and the county rate of 55 cents per $500. It is customarily paid by the seller.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about physician mortgage financing, not a loan commitment and not legal, tax or financial advice. The Michigan State Loan Repayment Program is administered by the Michigan Department of Health and Human Services, not by Cornerstone; its terms, award amounts, priorities and application windows are set by MDHHS and change. Figures here carry the date we verified them against the programme's own published materials. Physician-loan program terms, eligible degrees and overlays are set by the lender and change. All loans are subject to borrower, property and program qualification.