Although the Secretary of State collects 6% tax when the title is transferred, final determination of the tax owed on vehicle transfers is made by the Michigan Department of Treasury. NOTE: This tool is intended to be used for illustrative purposes only. If you exceed these cutoffs, you can reduce your tax exposure by adding the transfer tax onto your cost basis, the price you paid for your home when you bought it. Before the grantor or grantee records the deed, the grantor must pay transfer taxes in Michigan. This tax is also referred to as a deed stamp tax, real estate conveyance tax or documentary stamp tax. Re: Who Pays Transfer taxes? Simply enter the property sale (or list) price in the designated box. In Michigan, state UI tax is just one of several taxes that employers must pay. Before the grantor or grantee records the deed, the grantor must pay transfer taxes in Michigan. New Rule in Michigan for State Real Estate Transfer Tax. In addition, there is a county real estate transfer tax that is assessed at the rate of $0.55 per $500 or any fraction thereof. Previously, a Michigan homeowner would be exempt from paying the state transfer tax if they met the following requirements. Michigan corporations are subject to Michigan’s corporate income tax at a flat 6% rate. Commission/Broker Fees Standard commission in Michigan is 6% of the sales price. Join Clever’s network. When a house is bought or sold, many states and counties levy taxes on the value of the property being transferred from one party to the other. The seller calculator will estimate the Michigan state and county transfer tax. Generally, any real-estate transfer exceeding $100 in value within Michigan is subject to transfer tax. Costs When running this calculation again ($500,000 - $204,300 - $250,000 = $45,700), you now only have to pay capital gains tax on $45,700. Property transfer tax is an assessment charged by both the State of Michigan and the individual county. The tax rate is $3.75 for each $500 or fraction thereof of the total value of the property transferred. The seller usually pays the deed transfer taxes in Michigan, although, the payment is dictated by the sales contract. Who Pays Transfer Taxes in Michigan: the Buyer or the Seller? The exemption matters – at 0.75%, state transfer tax on the sale of home for $200,000, for example, is $1,500. State Laws and Customs Toolkit Stewart Title Stewart Title 1980 Post Oak Blvd. The People of the State of Michigan … Quitclaim Deed Transfer Tax in Michigan. State Transfer Tax Exemptions (MCL 207.526) County Transfer Tax Exemptions (MCL 207.505) The tax shall be upon the person who is the seller or the grantor. By subscribing to our mailing list you will get the latest news from us. Who Pays: A Distributional Analysis of the Tax Systems in All 50 States (the sixth edition of the report) is the only distributional analysis of tax systems in all 50 states and the District of Columbia. Transfer Tax would by $375.00 and the County Transfer Tax an additional $55.00, both payable to the County Register of Deeds office. II) WHAT PROPERTY TRANSFERS TRIGGERS THIS TAX? We discuss this at your listing appointment. When you transfer real estate, they charge a fee as a percentage of the sales price. Here are the basic rules for Michigan’s UI tax. File the deed and Property Transfer Affidavit with the county register of deeds. The fee for filing a deed varies by Michigan county, but ranges from $15 to $25, as of 2011. History:€1966, Act 134, Eff. Federal estate tax law includes a lifetime transfer exemption, which excludes the exempted amount from transfer taxes — including estate taxes. 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