Selling in North Muskegon and wondering what you’ll owe in transfer tax at closing? You’re not alone. When you plan ahead for this line item, you protect your net proceeds and avoid last‑minute surprises. In a few minutes, you’ll learn what the Muskegon County and Michigan transfer taxes are, who pays them, how to estimate your amount, and what to expect at closing. Let’s dive in.
What the transfer tax is
Michigan charges two real estate transfer taxes on most property sales: a state tax and a county tax. The state rate is set by law, and counties collect their portion when your deed is recorded. You pay these taxes through the title company at closing, and the county’s acceptance of your deed is proof that the taxes were paid. You can see the state rate in the Michigan statute and the local process in Muskegon County’s guidance.
- State rate details: Michigan SRETT statute
- Local recording process: Muskegon County FAQ
Who pays in Michigan
Under Michigan law, the seller, also called the grantor, is the person liable for the transfer tax. Your purchase agreement can shift this cost to the buyer by mutual agreement, so always check your contract and the closing disclosure. Title companies typically calculate and pay the tax at recording on behalf of the party who agreed to cover it. See the liability rule here: MCL 207.523.
How to calculate in Muskegon County
As of 2025, use these standard rates for a North Muskegon sale:
- State tax: $3.75 per $500 of price, or fraction of $500.
- County tax: $0.55 per $500 of price, or fraction of $500.
- Combined quick estimate: $4.30 per $500, which is about 0.86% of the sale price. The statute requires rounding up to the next $500 increment. Source: state rate statute and Muskegon County FAQ.
If your property spans more than one county, the price must be allocated, and tax is paid to each county based on its portion. See a county transfer tax table example here: Mason County transfer tax table.
Examples for common prices
$200,000 sale price
- $500 increments: 200,000 ÷ 500 = 400
- State tax: 400 × $3.75 = $1,500
- County tax: 400 × $0.55 = $220
- Total transfer tax: $1,720
$300,000 sale price
- $500 increments: 300,000 ÷ 500 = 600
- State tax: 600 × $3.75 = $2,250
- County tax: 600 × $0.55 = $330
- Total transfer tax: $2,580
Exemptions and how to claim
Michigan law lists transfers that are exempt, such as certain low‑consideration deeds, some transfers between spouses or close family under specific conditions, government conveyances, correction deeds, and some land contract scenarios. Review the statute’s exemption list to see if one fits your situation: MCL 207.526.
Important: some transfers can be exempt from the state tax but not the county tax, or vice versa. To claim an exemption, the deed must state the correct exemption language or code at recording, or tax will be collected. See local practice in the Muskegon County FAQ.
North Muskegon closing steps
- There is no widely documented city‑level transfer tax for North Muskegon beyond the state and county amounts. See a statewide overview of Michigan transfer tax practice here: Michigan transfer tax overview.
- Deeds are recorded with the Muskegon County Register of Deeds, 173 E Apple Ave, Suite 301, Muskegon, MI. Recording is often handled electronically by your title company. Office details: Muskegon recorder page.
- The flat recording fee is $30 per document in Muskegon County. Some deeds also require a small tax‑certification fee from the county treasurer. See the Muskegon County FAQ for current practices.
Quick seller checklist
- Confirm who pays the transfer tax in your purchase agreement.
- Estimate your tax using $4.30 per $500 of price, rounded up to the next $500.
- If an exemption applies, have your title company place the correct exemption language on the deed.
- Budget for the $30 recording fee per document and any small tax‑certification fee.
- Expect your title company to collect and pay the transfer taxes at recording.
- After closing, the buyer must file a Property Transfer Affidavit with the local assessor within 45 days. Learn more here: Property Transfer Affidavit basics.
Refunds if you overpaid
If you paid the State Real Estate Transfer Tax and later learn the transfer qualified for an exemption, you can apply for a refund through the Michigan Department of Treasury. Use the SRETT refund application and include your recorded deed, proof of tax paid, and documents showing you meet the exemption. Time limits apply. See a copy of the refund application here: SRETT refund form.
Avoid surprises: pro tips
- Do the math early. Multiply your sale price by about 0.86% for a quick estimate, then refine using $4.30 per $500 with rounding.
- Confirm everything with your title company. Procedures and small fees can change, so ask for a closing cost breakdown.
- Ask about exemptions. If your situation may qualify, make sure the deed shows the correct exemption language before recording.
Work with a local guide
You deserve clear answers and a smooth closing. If you’re selling in North Muskegon, our team can help you estimate your transfer tax, prepare for closing, and protect your net proceeds. Reach out to William Leiter for one‑on‑one guidance tailored to your sale.
FAQs
How much transfer tax will I owe when selling in North Muskegon?
- Use $4.30 per $500 of sale price, rounded up to the next $500, which equals about 0.86% total for state and county combined, per the Michigan statute and local practice.
Who is legally responsible for Michigan transfer tax?
- The seller is liable under Michigan law, but your contract can allocate the cost differently and the title company will reflect that on your closing statement.
Are there Michigan exemptions that remove the tax?
- Yes, the statute lists exemptions such as certain family transfers, government conveyances, low‑consideration deeds, corrections, and some land contract scenarios; the deed must state the exemption to avoid collection.
Is there a separate North Muskegon city transfer tax?
- Not typically; for North Muskegon the usual exposure is the state plus Muskegon County transfer taxes, verified at recording.
How do I get a refund if my sale should have been exempt?
- Apply to the Michigan Department of Treasury using the SRETT refund application and include proof of the exemption, the recorded deed, and proof of tax paid within the stated time limits.
