I was recently helping a client sell a house that she inherited. When I went over all the costs she was going to have to pay at closing the Transfer Tax was the one that she did not understand. I decided that others may not understand how the Transfer Tax is calculated.
Calculating the real estate transfer tax is done in increments of $500. The state charges $3.75 for each increment and the county charges $.75. These combined represents the total tax obligation. The Michigan legislation states: That a discounted rate of $. 55 is allowed if the county's population is less than 2 million.