Detroit is located in Wayne County, Michigan. Michigan real estate transfers are subject to two taxes: the Michigan state transfer tax of $7.50 per $1,000 (0.75%) and the Wayne County transfer tax of $1.10 per $1,000 (0.11%), for a combined rate of $8.60 per $1,000 (0.86%). Both taxes are based on the full purchase price and collected at the time of deed recording.
In Detroit and throughout Michigan, both the state and county real estate transfer taxes are paid by the seller (grantor) at closing. The seller is responsible for both the state and county portions. This obligation may be addressed in the purchase contract, so buyers and sellers should confirm responsibilities with their real estate attorney or title company.
Certain Detroit real estate transactions may be exempt from Michigan's transfer taxes. Common exemptions include transfers between spouses or blood relatives with no monetary consideration, transfers to qualifying governmental entities, certain foreclosure-related transfers, and transfers where the seller is a financial institution. Consult a Michigan real estate attorney to determine whether your transaction qualifies for an exemption.