Michigan Closing Costs for Buyers: How Much You'll Pay
In Michigan, the state transfer tax is 0.75% (about $2,023 on a $269,700 home; county and city taxes can push the total to about $2,319), and an owner's title policy runs about $1,682 plus $982 for the lender's policy. Figures below come from Michigan statutes, the state's revenue and insurance regulators and filed title rate cards, read on September 11, 2026.
Transfer tax in Michigan
| Jurisdiction | Rate | |
|---|---|---|
| Michigan (state) | State Real Estate Transfer Tax of $3.75 for each $500 (or fraction of $500) of the total value of the property transferred (0.75%), under the State Real Estate Transfer Tax Act, MCL 207.523. | source |
| Wayne County (and every other Michigan county) | County transfer tax $0.55 per $500 (0.11%) on top of the state's $3.75 per $500 (0.75%), the combined $4.30 per $500 (0.86%) rate is uniform across Michigan; | source |
More on Michigan (state)
State Real Estate Transfer Tax of $3.75 for each $500 (or fraction of $500) of the total value of the property transferred (0.75%), under the State Real Estate Transfer Tax Act, MCL 207.523. A separate County Real Estate Transfer Tax of $0.55 per $500 (0.11%) applies statewide under MCL 207.505, combined state + county rate is $4.30 per $500, i.e. 0.86% of value, in every Michigan county.
More on Wayne County (and every other Michigan county)
County transfer tax $0.55 per $500 (0.11%) on top of the state's $3.75 per $500 (0.75%), the combined $4.30 per $500 (0.86%) rate is uniform across Michigan; Wayne County's Register of Deeds confirms the same $1.10-per-$1,000 county rate plus $7.50-per-$1,000 state rate.
Michigan's 'transfer tax' already functions as the combined state + county recordation charge collected by the county Register of Deeds at the time the deed is presented for recording; there is no additional separate recordation tax on top of it.
Worked example: On a $269,700 home: state transfer tax = $269,700 x 0.0075 = $2,022.75; county transfer tax = $269,700 x 0.0011 = $296.67; combined total = $2,319.42, customarily paid by the seller in most Michigan transactions.
How much is title insurance in Michigan?
On a $269,700 home in Michigan, an owner's title policy costs about $1,682 and the lender's policy about $982 when both are issued together (the simultaneous-issue discount). The seller customarily pays for the owner's policy; the buyer pays the lender's policy. Michigan uses a filed uniform rate: insurers file one rate schedule with the state, so premiums are the same from company to company and shopping only affects settlement fees. Premiums computed from First American Title Fee Calculator (filed rates), Wayne County, Michigan, read September 11, 2026.
Who pays the owner's policy: seller (First American's calculator default allocation for Wayne County; negotiable by contract) Source
Owner's policy on the full $269,700 price and the lender's policy on an 80% loan ($215,760), quoted together so the simultaneous-issue rate applies; First American filed rates for Wayne County. NOT VERIFIED.
Michigan-specific buyer costs on a $269,700 home
These are the line items set by Michigan law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.
| Lender's title policy | $982 |
|---|---|
| Deed recording | $15 |
| Mortgage recording | $15 |
| State-set items, total | $1,012 |
Do you need a closing attorney in Michigan?
Not required. Michigan does not require an attorney to conduct a residential real estate closing. Deeds and mortgages executed in Michigan require only a notary's acknowledgment to be recordable (confirmed by Wayne County Register of Deeds recording requirements), and in practice most Michigan residential closings are conducted by title insurance companies/agents rather than attorneys, though attorneys may also close transactions. Source
Recording fees
Recording the deed costs $15 and the mortgage $15 at the Wayne County Register of Deeds (Michigan's most populous county, Detroit). Fee schedule
Other Michigan specifics
- Multi-page recording surcharge. Wayne County's $15 recording fee covers only the first page of a document; each additional page or side costs $3 more, so a typical multi-page deed or mortgage will cost more than the base $15 to record. Source
- Property tax certification fee. Warranty deeds, land contracts, and deeds containing a covenant of warranty must be certified by the Wayne County Treasurer's Office for payment of property taxes before recording, at a charge of $5. Source
How much are closing costs in Michigan?
For a buyer, closing costs usually run 2% to 5% of the purchase price. On Michigan's median-priced home (about $269,700), that is roughly $5,394 to $13,485, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.
What closing costs include
Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Michigan transfer tax, plus prepaid property taxes and homeowners insurance.
Why Michigan closing costs vary
The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter.
How a rebate offsets Michigan closing costs
Buyer commission rebates are legal in Michigan. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $269,700 home, a 2% rebate is about $5,394, often enough to cover much of the closing bill.
Frequently asked questions
How much is title insurance in Michigan?
About $1,682 for an owner's policy on a $269,700 home, plus about $982 for the lender's policy when both are issued together. Rates are filed uniformly, so the premium is the same across insurers.
Who pays closing costs in Michigan?
The seller customarily pays for the owner's policy; the buyer pays the lender's policy, plus lender fees, appraisal and prepaid taxes and insurance. Sellers often cover part of the buyer's costs through a negotiated concession.
How much is the transfer tax in Michigan?
State Real Estate Transfer Tax of $3.75 for each $500 (or fraction of $500) of the total value of the property transferred (0.75%), under the State Real Estate Transfer Tax Act, MCL 207.523. A separate County Real Estate Transfer Tax of $0.55 per $500 (0.11%) applies statewide under MCL 207.505, combined state + county rate is $4.30 per $500, i.e. 0.86% of value, in every Michigan county.. On a $269,700 home that is about $2,319, customarily paid by the seller. Wayne County (and every other Michigan county) add local taxes on top.
Do you need an attorney to close on a house in Michigan?
No. Michigan does not require an attorney to conduct a residential real estate closing. Deeds and mortgages executed in Michigan require only a notary's acknowledgment to be recordable (confirmed by Wayne County Register of Deeds recording requirements), and in practice most Michigan residential closings are conducted by title insurance companies/agents rather than attorneys, though attorneys may also close transactions.
How much are closing costs in Michigan?
Buyer closing costs in Michigan typically run 2% to 5% of the purchase price. On Michigan's median-priced home (about $269,700) that is roughly $5,394 to $13,485, on top of your down payment.
What do closing costs include in Michigan?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Michigan transfer tax, plus prepaid property taxes and homeowners insurance.
Can a buyer rebate offset closing costs in Michigan?
Often yes. In Michigan, buyer commission rebates are legal, and a rebate can be applied as a credit toward your closing costs at the settlement table.
Sources
- Michigan transfer tax statute
- Who pays the transfer tax
- First American Title Fee Calculator (filed rates), Wayne County, Michigan, read September 11, 2026
- Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price
Michigan figures last verified against official sources on September 11, 2026.
Michigan title insurance at every purchase price, with a calculator →
Michigan transfer tax at every purchase price, who pays and local surcharges →
Read the full buyer closing-costs guide →
Figures are typical 2026 ranges and vary by lender, loan, and location. This is general information, not financial advice; confirm your numbers with your lender and closing agent.
See closing costs in all states