Selling on Detroit’s Gold Coast and trying to nail down what you’ll owe at closing? Transfer taxes can feel like a black box when you are budgeting your net proceeds. You want clear numbers and a simple plan so there are no surprises on closing day. In this guide, you’ll learn the exact taxes most Gold Coast sellers pay, how they are calculated, common exemptions, and the practical steps to prepare. Let’s dive in.
Transfer taxes in Detroit’s Gold Coast
Most Detroit sales pay a combined state and county transfer tax when the deed is recorded. Wayne County uses a standard combined rate of $8.60 per $1,000 of consideration, which equals 0.86 percent of the sale price. That total includes the State Real Estate Transfer Tax and the Wayne County portion, as outlined on the county’s recording page. You can review the county’s published breakdown and process on the Wayne County Register of Deeds site document recording guidance.
How much you will pay
Use 0.86 percent as a quick estimate of your transfer tax. Here are simple examples based on the combined rate the county uses.
- $200,000 sale price: total transfer tax ≈ $1,720.
- $500,000 sale price: total transfer tax ≈ $4,300.
- $1,000,000 sale price: total transfer tax ≈ $8,600.
The state portion equals 0.75 percent and the county portion equals 0.11 percent of the sale price. Wayne County details both components on its document recording page.
Who pays and when
By statute, the tax is imposed on the seller, also called the grantor. Purchase agreements can reassign costs, but the default responsibility is on the seller. County resources describe this standard practice clearly; see a Michigan county example that explains the seller obligation on the transfer tax overview.
You typically pay the tax at recording through the Wayne County Register of Deeds. Many transactions that convey warranty require a tax certificate from the Wayne County Treasurer before recording. You can confirm current recording and tax certification steps with the county’s office on the Register of Deeds main page.
How the amount is calculated
Transfer tax is based on the “total consideration” shown on the deed or on a Real Estate Transfer Valuation Affidavit filed with the deed. Counties compute the tax in $500 increments, charging for each fraction thereof. In practice, that means rounding up to the next $500 when calculating the per‑$500 rates. Michigan county guidance summarizes this rounding approach on the real estate transfer tax page.
Example: if your deed states $200,100 as consideration, tax is computed as if it were $200,500 for per‑$500 math. Your title or closing agent will apply the correct rounding at recording.
Exemptions and special cases
Common statutory exemptions
Michigan law lists specific exemptions, such as certain transfers where consideration is under $100, some transfers between spouses or certain family members, transfers to governmental units, many court‑ordered transfers, and confirmatory or corrective deeds. Each exemption has conditions and documentation requirements, and the correct citation must appear on the instrument. You can read the statute’s exemption list in the State Real Estate Transfer Tax Act at MCL 207.526.
Entity-interest sales
Selling ownership in an entity that owns real estate can trigger Michigan’s state transfer tax rules for controlling‑interest transfers. These rules are technical and depend on percentages and asset composition. A helpful overview of the state’s broadened approach is available in this discussion of Michigan’s transfer tax and controlling interests from a Detroit business law resource: state transfer tax and controlling interest changes. If your sale involves an LLC or corporation, get legal and tax advice early.
Refunds and corrections
If you paid transfer tax and later determine an exemption applies, the Michigan Department of Treasury provides forms and instructions for refunds of the state portion. Processing requires documentation and can take several weeks. See the Treasury’s SRETT forms and refund page for details. County correction procedures vary, so keep your closing papers organized.
Gold Coast seller checklist
Use this quick list to stay on track.
- Confirm the sale price that will appear on the deed or on a Real Estate Transfer Valuation Affidavit. County guidance explains when the affidavit is used on this transfer tax overview.
- Ask your title company to compute Michigan and Wayne County transfer tax at the combined $8.60 per $1,000 rate. Have them show the state and county split on your closing statement per county practice outlined in Wayne County’s recording guidance.
- If your deed includes covenants of warranty, have your closing team obtain the Wayne County Treasurer’s tax certificate before recording, and confirm accepted payment methods with the Register of Deeds. Check the county’s Register of Deeds page for current procedures.
- If you believe an exemption applies, cite the correct statutory provision on the deed and assemble supporting documents. Review exemptions directly in MCL 207.526.
- For entity-interest or complex transfers, consult legal and tax advisors. The state’s rules for controlling interests are nuanced. See this summary of controlling‑interest tax changes.
Condo and co‑op notes for the Gold Coast
Many Gold Coast properties are in mid‑rise or high‑rise communities. Plan for building items like association transfer fees, estoppel letters, move scheduling, and, in some cases, board approvals. These charges are separate from state and county transfer tax. Ask your title company and association manager for the current fee schedule and lead times so your closing date and elevator reservation align.
City of Detroit filings and tax prorations
After closing, a Property Transfer Affidavit must be filed with the City assessor. This is separate from state and county transfer tax, but it is part of your post‑closing checklist. You can review the PTA and related guidance on the City’s transfer of ownership page. Expect standard prorations of City of Detroit property taxes and utilities at closing as well.
Bottom line
For most Gold Coast sales, budget about 0.86 percent of your sale price for transfer tax, paid at recording to Wayne County. The exact amount comes down to the total consideration and $500 rounding, with exemptions available in specific situations. A good title team and a local advisor will help you document the correct amount and keep recording smooth.
If you want a clear estimate and a plan tailored to your building, reach out to LizinDetroit for a quick closing cost review and concierge listing support.
FAQs
What transfer taxes do Detroit Gold Coast sellers usually pay?
- Most sellers pay a combined Michigan state and Wayne County transfer tax equal to $8.60 per $1,000 of consideration, which is 0.86 percent, as outlined by the county’s document recording guidance.
Who is responsible for paying transfer tax in Michigan home sales?
- The tax is imposed on the seller or grantor by statute, though parties can negotiate in the purchase agreement; see a Michigan county summary of the seller obligation on the transfer tax overview.
How is Michigan transfer tax calculated on sale price and rounding?
- The tax is computed on the total consideration and charged in $500 increments, with amounts rounded up to the next $500 for calculation; see county guidance on transfer tax rounding.
Are there Michigan exemptions from transfer tax for family or low‑consideration deeds?
- Yes, the statute lists exemptions such as certain transfers under $100, some family transfers, government conveyances, and court‑ordered transfers; review the list in MCL 207.526 and document the correct citation on the deed.
Where do I file the Property Transfer Affidavit after a Detroit sale?
- File the PTA with the City of Detroit assessor after closing; guidance and forms are on the City’s transfer of ownership page.
