How Much Are Transfer Taxes in Michigan? The state transfer tax rate in Michigan is $3.75 for every $500 of property value, or 0.75% of the transferred property’s value. In addition to the state tax, each individual county levies an additional transfer tax of $0.55 per $500.
Who typically pays transfer tax in Michigan?
Property transfer tax is an assessment charged by both the State of Michigan and the individual county. When you transfer real estate, they charge a fee as a percentage of the sales price. The seller is responsible for this fee unless it is otherwise agreed to be paid by the buyer.
Does Michigan have a transfer tax?
Calculating the Michigan Real Estate Transfer Tax State Transfer Tax Rate – $3.75 for every $500 of value transferred. County Transfer Tax Rate – $0.55 for every $500 of value transferred.
How do I calculate transfer tax?
The transfer tax is calculated as a percentage of the sale price or the appraised value of the property. The percentage will vary depending on what the city, county, or state charges. For the most part, the rate is calculated per $100, $500, or $1,000. If the transfer tax is $1.00 per $500, the rate would be 0.2%.
Who pays transfer taxes buyer or seller?
The tax amount itself varies from one state to another, but it’s usually based on the selling price. In most cases, sellers pay the transfer tax. However, there’s no law that says that it’s the seller’s responsibility. So, in the real world, the seller and the buyer negotiate this before the sale.
Are transfer taxes deductible?
You can’t deduct transfer taxes and similar taxes and charges on the sale of a personal home. If you are the buyer and you pay them, include them in the cost basis of the property. If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale.
Are transfer taxes paid at closing?
In California, the seller traditionally pays the transfer tax, thus the seller usually pays the Los Angeles County transfer tax. Depending on local market conditions, transfer taxes can become a negotiating point during closing.
Who pays transfer cost?
Transfer fees are paid to a transferring attorney, appointed by the property’s seller to transfer ownership to you. This cost varies, depending on the purchase price and comprise the conveyancer’s fees plus VAT, and the transfer duty payable to SARS.