Michigan levies a real estate transfer tax when property changes hands, split into a state portion and a county portion. The State Real Estate Transfer Tax (SRETT) is $3.75 per $500 of value (0.75%) and the county transfer tax is $0.55 per $500 (0.11%). Combined, that is $8.60 per $1,000 — about 0.86% of the sale price — and it is paid by the seller at closing. This calculator rounds the price to the nearest $500 increment and applies both rates so you can see exactly what is owed.
How it works
Michigan transfer tax is charged per $500 of value, so the price is first rounded up to the next $500:
Increments = ⌈ Sale price ÷ 500 ⌉
Each rate is then applied per increment:
State tax = Increments × $3.75 County tax = Increments × $0.55 Total transfer tax = State tax + County tax
This works out to $7.50 per $1,000 for the state portion plus $1.10 per $1,000 for the county portion — $8.60 per $1,000 combined.
Michigan transfer tax explained
The state transfer tax funds the State School Aid Fund and general state operations, while the county portion stays with the county. The seller is the responsible party by default, and the tax is collected by the county register of deeds when the deed is recorded.
Some transfers are exempt, such as gifts, spousal transfers, and certain government transfers. Sellers may also qualify for a SRETT refund in limited cases — for example, when the home’s state equalized value did not rise above the value at the prior purchase and the home was a principal residence.
Worked example
A home sells for $300,000:
- Increments = 300,000 ÷ 500 = 600
- State tax = 600 × $3.75 = $2,250
- County tax = 600 × $0.55 = $330
- Total transfer tax = $2,580 (0.86% of $300,000)
Note: This covers the standard state and county transfer tax. It does not determine exemptions or refunds, which depend on the specific transaction. Confirm with your title company or county register of deeds.