US Home Sales Tax

Taxes when buying a house in Michigan

Michigan does not tax the buyer on a home purchase or on the mortgage. The transfer tax ($8.60 per $1,000 (0.86%)) is usually paid by the seller.

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Loan amount: $320,000. Some states tax the mortgage, so the loan size changes the result there. Paying cash? Enter 100.

Estimated taxes when you buyMichigan ยท Rates verified November 2026
Pay to the order ofState and county tax offices$0

Zero and 00/100 dollars

Michigan does not tax the buyer on this purchase.

Taxes the buyer pays
Tax on the purchase$0
Total buyer taxes$0

Taxes only. Lender fees, title insurance, flat recording fees and prepaid property tax are separate closing costs.

What a Michigan home buyer is taxed on

Buyer's taxes
None on the purchase or the mortgage.
Transfer tax
The seller pays both the state and the county tax.
Sales tax
None. A home is real estate, and sales tax does not apply to it.
Official source
Alger County Register of Deeds (MCL 207.504 and 207.525)
Last verified

Michigan buyer taxes at common prices

Purchase priceLoan with 20% downBuyer's taxes
$150,000$120,000$0
$250,000$200,000$0
$400,000$320,000$0
$600,000$480,000$0
$1,000,000$800,000$0

Questions Michigan buyers ask

Do buyers pay transfer tax in Michigan?

The seller pays both the state and the county tax.

Is there a mortgage tax in Michigan?

No. Michigan does not tax the recording of a mortgage. The county charges only a flat fee to record it.

Is there sales tax when you buy a house in Michigan?

No. Sales tax applies to goods and some services, and a house is real estate, which no state taxes that way.

How much tax does a buyer pay at closing in Michigan?

Usually none. On a $400,000 home a Michigan buyer owes no state or local tax on the purchase itself. Closing costs still include lender fees, title insurance and prepaid property tax.

Selling in Michigan? Use the Michigan transfer tax calculator.

Buyer taxes in other states