Michigan Transfer Taxes

Transfer Tax Acts

MCL 207.505 Sec. 5 (County)

MCL 207.526 Sec. 6 (State)

Overview

A written instrument subject to the tax imposed by MCL 207.505 Sec. 5 and MCL 207.526 Sec. 6 shall state on its face the TOTAL CONSIDERATION of the real property, or a Real Estate Transfer Valuation Affidavit disclosing the total consideration shall be filed at the time the instrument is presented for recording. (See above named acts for details).

No filing fee is charged for filing of the “Real Estate Transfer Valuation Affidavit”, but a statement must be made on the face of the instrument that a real estate transfer valuation affidavit is being filed.

Transfer tax imposed by each act shall be collected unless the transfer is exempt from either or both acts. Any exemptions to the above named acts must be stated on the face of the instrument presented for recording.

The tax shall be upon the person(s) who is the seller or grantor.

In the case of an exchange of two properties, the deeds transferring title to each are subject to Michigan Real Estate Transfer tax, and in each case shall be computed on the basis of the actual value of the property conveyed.

Transfer Tax stamps shall be purchased only in the county in which the property is located.

Conveyances affecting property situated in more than one county must state the portion of the sales price attributable to each parcel lying in the separate counties and transfer tax must be paid to each county for that portion of the sale price.

An instrument of foreclosure is subject to county transfer tax based on the sale price stated on the face of the instrument.

A conveyance of easement or a right of way is subject to transfer tax.

If the value of the real estate transferred is $100 or more, payment of State and County transfer tax is required.

• Rate of County Tax – $.55 for each $500 or fraction thereof
• Rate of State Tax – $3.75 for each $500 or fraction thereof

Visit the State of Michigan Department of Treasury for more answers to questions about the Michigan Real Estate Transfer Tax.