Is the Michigan transfer tax catching you off guard as you prep for closing in Chesterfield? You are not alone. Transfer taxes are one of the most misunderstood line items for sellers and buyers, yet they can make a real difference in your bottom line. In a few minutes, you will know what the tax is, how to calculate it for a typical Macomb County closing, who usually pays, and how to plan for it on your closing statement. Let’s dive in.
What the transfer tax covers
Michigan charges a real estate transfer tax when a deed is recorded. The tax is based on the sale price and is collected at the county register of deeds as part of recording the deed. Your title or closing company gathers the tax at closing and remits it when the deed is recorded.
Michigan rates and how to calculate
Michigan has a state transfer tax and, in many counties, a county transfer tax that gets added on top. Chesterfield properties record in Macomb County.
State tax: 0.75%
- The state real estate transfer tax is 0.75% of the sale price.
- Quick math: sale price × 0.0075 = state transfer tax.
Macomb County tax: typically 0.25%
- Many Michigan counties, including Macomb County, collect a local transfer tax commonly at 0.25% of the sale price.
- Quick math: sale price × 0.0025 = county transfer tax.
- Always confirm the current Macomb County rate with the Register of Deeds before you rely on a hard number.
Combined typical rate in Macomb
- Typical combined rate in Macomb County equals 1.00% of the sale price.
- Title and closing teams collect both the state and county portions when the deed is recorded.
Quick Chesterfield examples
Use these to estimate your net. Replace the county rate if your title company confirms a different percentage.
- $100,000 sale: state $750, county $250, total $1,000.
- $250,000 sale: state $1,875, county $625, total $2,500.
- $400,000 sale: state $3,000, county $1,000, total $4,000.
- $600,000 sale: state $4,500, county $1,500, total $6,000.
Who pays in Chesterfield
Legal default vs. local custom
- By statute, the tax is imposed on the transferor, which is usually the seller or grantor.
- In most residential deals in Michigan and Macomb County, the seller customarily pays the transfer tax as a seller closing cost.
- You can negotiate a different allocation in your purchase agreement. Buyers and sellers sometimes split the tax or shift it depending on the deal.
How it is collected at closing
- Your title or closing company calculates the tax, adds it to the settlement statement, and collects it from the party who agreed to pay.
- The tax is remitted when the deed is recorded with the county register of deeds.
Where it appears on your net sheet
When the seller pays, transfer taxes appear in the seller closing costs section. You will usually see two separate lines so you can track each amount clearly:
- State real estate transfer tax: amount based on 0.75%.
- County transfer tax: amount based on the local rate for the recording county.
Recording fees and title charges often appear nearby on the statement. Those are separate charges and should not be confused with transfer taxes.
Seller budgeting tips
- Ask your title or closing company for a seller net sheet early so you can see the exact transfer tax line items.
- Use sale price × 0.0075 for the state portion, plus the verified Macomb County percentage for the local portion, to build a quick estimate.
- If you offer buyer credits or concessions, spell out whether those cover transfer taxes or other costs.
Buyer planning tips
- If you want the seller to cover transfer taxes, put it in your initial offer so it is clear on the settlement statement.
- In new construction, relocations, or lender-owned sales, cost allocations often vary. Confirm who pays in writing before you finalize terms.
- Ask your title company for a buyer closing-cost worksheet so you can see how any negotiated transfer tax credits will apply.
Common exemptions and special cases
Some transfers are exempt from the tax or handled differently. Exemptions are very specific, and many require documentation or an affidavit submitted with the deed.
Typical scenarios that may qualify include:
- Transfers with no consideration, such as a gift.
- Certain transfers between spouses or following a divorce.
- Transfers to or from a government entity.
- Court-ordered or probate-related transfers by an executor or administrator.
- Some transfers involving trusts or internal corporate reorganizations.
Your title company can help determine whether an exemption applies and prepare the required forms for recording with Macomb County.
Chesterfield and nearby areas
The state portion of the tax is the same across Michigan. The county portion depends on the recording county. Chesterfield records in Macomb County, where the commonly applicable local rate is 0.25%. If you are buying or selling in nearby areas such as Warren, Troy, or Farmington Hills, verify the local rate for that property’s recording county before you finalize your numbers.
Avoid surprises at closing
Two steps will keep you on track:
- Confirm the county rate. Ask the Macomb County Register of Deeds or your title company to verify the current local transfer tax percentage.
- Put it in the contract. Be explicit in your purchase agreement about who pays the transfer tax so the settlement statement matches your expectations.
Plan your move with a local guide
If you are selling or buying in Chesterfield or greater Macomb County, the transfer tax is just one piece of your bottom line. You deserve a clear plan, accurate estimates, and proactive communication from contract to close. For a personalized net sheet, current county rate confirmation, and step-by-step guidance, connect with Raymond Matti for a free neighborhood consultation.
FAQs
Who pays the Michigan transfer tax in a typical Chesterfield sale?
- By statute the tax is imposed on the transferor, usually the seller, and in most local residential deals the seller customarily pays, though it can be negotiated in the purchase agreement.
How much are transfer taxes on a $300,000 Chesterfield home?
- Using the common Macomb County structure, the state portion is $2,250 (0.75%) and the county portion is $750 (0.25%) for a total of $3,000; always verify the county rate before closing.
When is the transfer tax collected in Macomb County?
- It is collected at closing by the title company and remitted when the deed is recorded with the Macomb County Register of Deeds.
Can the buyer agree to pay the transfer tax?
- Yes, the parties can negotiate who pays in the purchase agreement; the settlement statement will reflect the agreed allocation at closing.
How do I claim an exemption from the transfer tax?
- Many exemptions require specific documentation or an affidavit submitted with the deed; your title company can confirm eligibility and prepare the required forms for recording.
