Michigan Real Estate Transfer Tax
The Michigan real estate transfer tax is a tax on written instruments—like deeds—that transfer an interest in Michigan real estate.
Transfer taxes are due when the deed is submitted for recording. The county’s acceptance of the deed for recording is evidence that the taxes were paid. If the transfer is exempt from tax, the deed should state the basis for the exemption (our online deed preparation service includes this statement automatically).
Calculating the Michigan Real Estate Transfer Tax
The real estate transfer tax includes two components: the state tax and the county tax. These taxes are levied at different rates:
- State Transfer Tax Rate – $3.75 for every $500 of value transferred
- County Transfer Tax Rate – $0.55 for every $500 of value transferred
Instead of the $0.55 county transfer tax rate applied to most counties, counties with more than two million residents may impose a tax rate of up to $0.75 for every $500 of value transferred. As of 2023, though, Michigan’s largest county (Wayne County) has less than 1.8 million residents.
Need to calculate the Michigan real estate transfer tax?
Our free Michigan Real Estate Transfer Tax Calculator makes it easy. It walks you through the options for determining whether the transfer is exempt from state transfer taxes and, if so, gives you the basis for the exemption. If the property is subject to tax, the calculator computes the amount of the tax for you. Results are presented on-screen immediately, and you can choose to have them e-mailed to you.
Michigan Real Estate Transfer Tax Exemptions
Thankfully, many transfers of Michigan real estate are exempt from real estate transfer tax. The tables below identify the types of transfers that are exempt from the Michigan real estate transfer tax.
The first column describes the exemption; the second column contains the Michigan citations that exempts the transfer from transfer tax at the state level; and the third column contains the Michigan citations that exempts the transfer from transfer tax at the state level.
Note that some transfers are exempt from state real estate transfer taxes but not exempt from county real estate transfers taxes. This means that a tax may be owed at the county level even though the transfer is exempt at the state level.
General Exemptions
The following is a list of real estate transfer tax exemptions that apply generally to transfers of Michigan real estate.
| Exemption | State Exemption Law | County Exemption Law |
| This deed is a written instrument in which the value given in exchange for the property is less than $100.00 | MCL § 207.526(a) | MCL § 207.505(a) |
| This deed is a written instrument evidencing a contract or transfer that is not to be performed wholly within the State of Michigan only to the extent the written instrument includes land lying outside of Michigan | MCL § 207.526(b) | MCL § 207.505(b) |
| This deed is a written instrument that Michigan is prohibited from taxing under the United States constitution or federal statutes | MCL § 207.526(c) | MCL § 207.505(c) |
| This deed is a conveyance from a spouse or married couple creating or disjoining a tenancy by the entireties in the grantors or the grantor and his or her spouse | MCL § 207.526(i) | MCL § 207.505(i) |
| This deed is a conveyance from an individual to that individual’s child, stepchild, or adopted child | MCL § 207.526(j) | none |
| This deed is a conveyance from an individual to that individual’s grandchild, step-grandchild, or adopted grandchild | MCL § 207.526(k) | none |
| This deed is a written instrument used to straighten boundary lines and no monetary consideration was given | MCL § 207.526(m) | MCL § 207.505(k) |
| This deed is a written instrument to confirm title already vested in a grantee, including a quitclaim deed to correct a flaw in title | MCL § 207.526(n) | MCL § 207.505(l) |
| This deed is a written instrument evidencing the transfer of mineral rights and interests | MCL § 207.526(q) | MCL § 207.505(n) |
| This deed is a written instrument creating a joint tenancy between two or more persons and at least one of the persons already owns the property | MCL § 207.526(r) | MCL § 207.505(o) |
| This is a written instrument evidencing a lease, including an oil and gas lease, or a transfer of a leasehold interest | MCL § 207.526(e) | MCL § 207.505(e) |
| This is a written instrument evidencing an interest that is assessable as personal property | MCL § 207.526(f) | MCL § 207.505(f) |
| This is a written instrument evidencing the transfer of a right and interest for underground gas storage purposes | MCL § 207.526(g) | MCL § 207.505(g) |
| This is a judgment or order of a court of record making or ordering a transfer, unless a specific monetary consideration is specified or ordered by the court for the transfer | MCL § 207.526(l) | none |
| This is a land contract in which the legal title does not pass to the grantee until the total consideration specified in the contract has been paid | MCL § 207.526(o) | MCL § 207.505(m) |
| This is a transfer made pursuant to a bona fide sales agreement made before April 1, 1994, and the sales agreement cannot be withdrawn or altered, or contains a fixed price not subject to change or modification | MCL § 207.526(s) | none |
| This deed is a written instrument conveying an interest in property for which an exemption is claimed under section 7cc of the general property tax act, 1893 PA 206, MCL 211.7cc, and the state equalized valuation of that property is equal to or lesser than the state equalized valuation on the date of purchase or on the date of acquisition by the seller or transferor for that same interest in property and the transaction was for a price at which a willing buyer and a willing seller would arrive through an arms-length negotiation | MCL § 207.526(w) | none |
Financing Exemptions
The following is a list of real estate transfer tax exemptions that apply to transfers of Michigan real estate in connection with lending or other financial transactions.
| Exemption | State Exemption Law | County Exemption Law |
| This deed is a written instrument given as security or an assignment or discharge of the security interest | MCL § 207.526(d) | MCL § 207.505(d) |
| This deed is a written instrument given in foreclosure or in lieu of foreclosure of a loan made, guaranteed, or insured by the United States, the State of Michigan, a political subdivision or municipality of the State of Michigan, or an officer of the United States or of State of Michigan, or a political subdivision or municipality of the State of Michigan, acting in his or her official capacity | MCL § 207.526(h)(ii) | MCL § 207.505(h)(ii) |
| This deed is a written instrument given to the United States, the State of Michigan, or one of their officers acting in an official capacity as grantee, pursuant to the terms or guarantee or insurance of a loan guaranteed or insured by the grantee | MCL § 207.526(h)(iii) | MCL § 207.505(h)(iii) |
| This deed is a written instrument transferring an interest in property pursuant to a foreclosure of a mortgage including a written instrument given in lieu of foreclosure of a mortgage (does not apply to a subsequent transfer of the foreclosed property by the entity that foreclosed on the mortgage) | MCL § 207.526(v) | MCL § 207.505(a) |
Organizational Exemptions
The following is a list of real estate transfer tax exemptions that apply to transfers of Michigan real estate and that depend—at least in part—on one of the parties being a trust, a business entity, a nonprofit, or a governmental body.
| Exemption | State Exemption Law | County Exemption Law |
| The deed is a written instrument in which the grantor is the United States, the State of Michigan, a political subdivision or municipality of the State of Michigan, or an officer of the United States or of the State of Michigan, or a political subdivision or municipality of the State of Michigan, acting in his or her official capacity | MCL § 207.526(h)(i) | MCL § 207.505(h)(i) |
| The deed is a transfer between any corporation and its stockholders or creditors, between any limited liability company and its members or creditors, between any partnership and its partners or creditors, or between a trust and its beneficiaries or creditors and the transfer is to effectuate a dissolution of the corporation, limited liability company, partnership, or trust and it is necessary to transfer the title of real property from the entity to the stockholders, members, partners, beneficiaries, or creditors | MCL § 207.526(p)(i) | none |
| The deed is a transfer between any limited liability company and its members and the ownership interests in the limited liability company are held by the same persons and in the same proportion as in the limited liability company prior to the transfer | MCL § 207.526(p)(ii) | none |
| The deed is a transfer between any partnership and its partners and the ownership interests in the partnership are held by the same persons and in the same proportion as in the partnership prior to the transfer | MCL § 207.526(p)(iii) | none |
| The deed is a transfer of a controlling interest in an entity with an interest in real property and the transfer of the real property would qualify for exemption if the transfer had been accomplished by deed to the real property between the persons that were parties to the transfer of the controlling interest | MCL § 207.526(p)(iv) | none |
| The deed is a transfer in connection with the reorganization of an entity and the beneficial ownership is not changed | MCL § 207.526(p)(v) | none |
| The deed is a written instrument evidencing a contract or transfer of property to a person sufficiently related to the transferor to be considered a single employer with the transferor under section 414(b) or (c) of the Internal Revenue Code | MCL § 207.526(t) | none |
| The deed is a written instrument conveying an interest from a religious society in property exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s, to a religious society if that property continues to be exempt from the collection of taxes under section 7s of the general property tax act, 1893 PA 206, MCL 211.7s | MCL § 207.526(u) | none |