Michigan taxes property sales through its state real estate transfer tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is not a community property state.
Michigan in short
Is there a real estate transfer tax in Michigan?
Michigan has a state transfer tax of $3.75 per $500 of value and a county transfer tax of $0.55 per $500 in counties under 2,000,000 people. Wayne County lists the combined rate as $8.60 per $1,000. By law the seller owes both.
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What closing costs does Michigan law set?
Michigan has no official typical closing-cost total. In Wayne County the seller owes transfer tax of $8.60 per $1,000 of value ($1,720 on $200,000) and recording a deed costs $30 per document.
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How is property tax calculated in Michigan?
Michigan assesses property at 50% of true cash value and caps yearly growth in taxable value at the lesser of inflation or 5% (2.7% for 2026) until the home is sold, and the principal residence exemption removes 18 mills of school operating tax.
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What is the deadline to appeal a property tax assessment in Michigan?
In Michigan, protest your assessment first at the March Board of Review, which meets starting the second Monday in March, then, for residential property, file a petition with the Michigan Tax Tribunal by July 31 of the tax year (MCL 205.735a).
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Do you need a real estate attorney to close in Michigan?
The Michigan statutes read do not require an attorney to buy or sell a home. Only a person licensed in Michigan may practice law (MCL 600.916) and a recorded deed must name its drafter (MCL 565.201).
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What must a home seller disclose in Michigan?
A Michigan seller of 1 to 4 residential units must give the buyer a signed disclosure form before the buyer signs a binding purchase agreement (Seller Disclosure Act, MCL 565.954). If it arrives later, the buyer may cancel within 72 hours in person or 120 hours by registered mail.
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How does foreclosure work in Michigan?
Most Michigan foreclosures happen out of court, by advertisement: notice is published for 4 successive weeks and the home is sold at a public sheriff's sale. For most homes with 1 to 4 units the borrower then has a 6-month redemption period.
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What first-time home buyer programs does Michigan offer?
In Michigan, the City of Detroit's Down Payment Assistance Program offers up to $25,000 for down payment, prepaids and closing costs to households below 80% of area median income ($83,850 for a household of four). The Michigan State Housing Development Authority (MSHDA) runs the state's homebuyer education network.
Michigan guides
- Closing costs in Michigan: what buyers and sellers pay
- Michigan transfer tax: $8.60 per $1,000, paid by the seller
- Michigan property tax: how it works and the 18-mill exemption
- Seller disclosure requirements in Michigan
- Do you need a real estate attorney to close in Michigan?
- How does foreclosure work in Michigan, and how long does it take?
- Home prices in Michigan and Detroit: median value and trend
- First-time home buyer programs in Michigan and Detroit
- How to verify a real estate license in Michigan (5 professions)