Michigan · Detroit-Warren-Dearborn, MI metro area

Buying a home in Troy, Michigan

In Troy, the median value of owner-occupied homes is $420,300, Oakland County's effective property tax rate is 1.27%, a purchase mortgage carried a median $4,486 in total loan costs in 2025, and median gross rent is $1,602 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Troy home costs, fact by fact

About Troy

Troy, Michigan lies in the Detroit-Warren-Dearborn, MI metro area, the 14th largest in the United States. Owners in Troy estimate their homes at a median of $420,300, a value reported by owners rather than a sale price, and 73.3% of homes are owner-occupied.

Reading the Troy figures

Troy's owner-estimated median of $420,300 runs well above the $269,500 statewide figure for Michigan, and the other covered cities show how wide the spread is. Ann Arbor reports $453,400, Livonia sits at $281,100, and Detroit reports $83,900. Rent of $1,602 a month in Troy lies above HUD's Fair Market Rent of $1,459, which is a HUD benchmark rather than a market median. Oakland County's tax collector takes a typical $4,371 a year, set against homes valued at $343,600, and that gives the 1.27% rate. Up-front loan expenses ran $4,486 for the typical loan among 12,350 mortgages originated in 2025, with the central band running from $3,649 to $6,548.

Calculate for Michigan

If you buy

Michigan transfer taxes

State real estate transfer tax (MCL 207.522 to 207.526): $3.75 per $500 of value or fraction of $500. Change the price: the amount is recalculated instantly.

Price$269,500
State transfer tax ($3.75 per $500)$2,021.25
County transfer tax ($0.55 per $500)$296.45
Total transfer tax$2,317.70
Share of the price0.86% of the price
Who paysThe seller

Default price: the Michigan median value of owner-occupied homes, $269,500 (Census ACS 2025). Rule: Divide the value by $500, round up to the next whole unit, multiply by $3.75. Value is fair market value of the real property only, if personal property is stated separately. This is the state share only; the county tax is added separately. The county transfer tax is imposed by law in every county, at 55 cents per $500 in a county under 2,000,000 people (MCL 207.502 and 207.504); a county of 2,000,000 or more may set up to 75 cents, and Wayne County, the most populous, charges 55 cents (Register of Deeds). Source: MCL 207.502 and 207.504 (legislature.mi.gov) and the Wayne County Register of Deeds Document Recording page, read October 15, 2026. Who pays: Both the state and county acts make the seller or grantor liable; a buyer may pay on the seller's behalf by agreement. Not included: other local transfer taxes, recording fees, title insurance and lender charges. Michigan transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Michigan state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Troy

How much is property tax in Troy?

Homeowners in Oakland County pay a median $4,371 a year in property tax, 1.27% of the county median home value of $343,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Troy?

Home-purchase mortgages in Oakland County carried median total loan costs of $4,486 in 2025; half of the 12,350 loans fell between $3,649 and $6,548 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Troy?

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.

Is it cheaper to rent or buy in Troy?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Troy ($420,300) equals 21.9 years of the median gross rent ($1,602 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Michigan rules that apply in Troy

Other large cities in Michigan

Who licenses each trade in Michigan · All covered cities

Sources

Michigan · All states · Federal guides