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Michigan · MCL 207.525Michigan state real estate transfer tax: $3.75 per $500

Michigan's State Real Estate Transfer Tax is $3.75 for each $500, or part of $500, of the total value of the property transferred (MCL 207.525). The deed must state the total value, or an affidavit in the Treasury's form must be attached; when real and personal property are sold together and valued separately, only the real property is taxed. On a $400,000 sale the state tax is $3,000. MCL 207.526 lists the exempt instruments, such as transfers under $100, security instruments and leases.

Rate, who pays and an example

  1. Rate

    $3.75 per $500 or fraction of the total value transferred (MCL 207.525(1)).

  2. Value on the deed

    The deed states the total value, or a Treasury affidavit declaring it is attached (207.525(2)).

  3. Personal property

    Only the real property is taxed when real and personal property values are stated separately.

  4. Example

    $400,000 sale → 800 × $3.75 = $3,000 state tax.

Good to know

  • Exempt instruments include consideration under $100, security instruments and their discharge, and leases (MCL 207.526).

What the TC checks

  • The tax line on the closing statement against the statutory rate.
  • Who pays it – the statute, the contract or local custom.
  • The value or consideration stated on the deed or declaration.

Questions about this tax

How much is the Michigan state transfer tax?

$3.75 for each $500 of the total value transferred (MCL 207.525) – $3,000 on a $400,000 sale.

Is personal property taxed in a Michigan home sale?

No, if the real and personal property values are stated separately on the deed or affidavit.

Are mortgages subject to Michigan transfer tax?

No. Instruments given as security, and their assignment or discharge, are exempt (MCL 207.526(d)).

Related guides

Add the transfer tax check to the closing statement review as a task with an owner and due date in ClosingCode.

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Source: Michigan Compiled Laws 207.525 and 207.526 (legislature.mi.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.