Michigan Seller Guide
What Does It Cost to Sell a Home in Michigan?
Transfer taxes, title insurance, property tax prorations and more. Here is what Metro Detroit sellers actually pay at closing, explained in plain English.
The Main Costs of Selling
Every sale is different, but most Michigan sellers see the same handful of items on their closing statement. These come out of your sale proceeds at closing, so you usually do not pay them out of pocket.
Mortgage payoff
Your remaining loan balance plus any interest owed through the payoff date. Home equity loans and lines of credit are paid off too.
Real estate commissions
Commissions are negotiable and agreed on up front in writing. We walk through exactly what you will pay before you list.
Michigan transfer taxes
A state and county tax on the sale price, about 0.86% combined. More on this below.
Owner's title insurance
In Michigan, the seller normally pays for the buyer's owner's title insurance policy. The cost is based on the sale price.
Property tax prorations
Summer and winter taxes are split between you and the buyer based on your closing date and the method in the purchase agreement.
Other closing items
Settlement fees, recording fees (Macomb County charges a flat $30 per recorded document), any HOA dues or transfer fees, final water bills, and any repair credits or concessions you agree to.
Michigan Transfer Tax, Explained
When a home sells in Michigan, the deed cannot be recorded until transfer taxes are paid. There are two parts: the state transfer tax of $3.75 for every $500 of the sale price, and the county transfer tax of $0.55 for every $500. Together that is about 0.86% of the price. According to the Macomb County Register of Deeds, the tax is on the seller.
| Sale price | State tax | County tax | Total |
|---|---|---|---|
| $200,000 | $1,500 | $220 | $1,720 |
| $250,000 | $1,875 | $275 | $2,150 |
| $300,000 | $2,250 | $330 | $2,580 |
| $350,000 | $2,625 | $385 | $3,010 |
| $400,000 | $3,000 | $440 | $3,440 |
| $500,000 | $3,750 | $550 | $4,300 |
| $600,000 | $4,500 | $660 | $5,160 |
Rates and amounts follow the Macomb County Register of Deeds transfer tax schedule (state 0.0075 and county 0.0011 of the sale price, figured in $500 steps).
You may not owe the state portion. If the home was your principal residence and its state equalized value (SEV) at the time of sale is equal to or lower than its SEV when you bought it, you may qualify for an exemption from the state transfer tax. The county tax still applies. The Macomb County Register of Deeds lists this as exemption (u) under MCL 207.526. Ask your title company or tax professional before closing, or let us check it for you.
Property Taxes at Closing
Michigan homeowners get two tax bills a year: a summer bill issued around July 1 and a winter bill issued around December 1. At closing, these taxes are prorated so you pay for the time you owned the home and the buyer pays for the rest. The exact math depends on the proration method written into your purchase agreement, so we review it with you before you sign.
What Uncapping Means for Your Buyer
While you own your home, Michigan caps how fast your taxable value can rise. When the home sells, the taxable value uncaps the year after the sale and resets to the state equalized value, which is about half of market value. If you have owned your home for a long time, your buyer's tax bill may be noticeably higher than yours. Buyers and lenders factor that into what they can afford, so it matters when we set your price.
What About Capital Gains?
If you owned and lived in the home as your main residence for at least two of the last five years, federal law generally lets you exclude up to $250,000 of profit, or up to $500,000 for married couples filing jointly. Investment properties, rentals and homes you have not lived in follow different rules. Talk with your tax professional about your situation.
How to Estimate Your Net
- Start with a realistic sale price based on recent nearby sales.
- Subtract your mortgage payoff and any other liens.
- Subtract transfer taxes, title insurance and commissions.
- Adjust for property tax prorations, HOA items and any credits.
We put all of this on a seller net sheet for you before you list, so there are no surprises at the closing table.
Want to Know Your Bottom Line?
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This guide is general information about Michigan home sales as of November 2026 and is not legal or tax advice. Rates and rules can change and individual situations vary, so confirm the details for your sale with your title company, attorney or tax professional.
Questions and Answers
Michigan Seller Cost Questions
Quick answers to what sellers ask us about closing costs and taxes.