Michigan Transfer Tax

Financing

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.

 

Example
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.


(Learn more at REAL ESTATE TRANSFER TAX - MCL 207.504 Sec. 4 (Act 134 of 1966) - County).

 

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