A $650,000 sale in Elk Rapids carries $5,590 in transfer tax. It's a tax on the deed itself, set by two Michigan statutes, and it shows up on the closing statement whether or not anyone mentioned it at the listing appointment.
How the number gets built
The state charges $3.75 for each $500, or fraction of $500, of the property's value. The county adds 55 cents per $500 in any county under 2,000,000 people, which covers Grand Traverse, Leelanau, Antrim, Benzie and Kalkaska with room to spare. Together that's $4.30 per $500, or 0.86%.
The "or fraction" part means it rounds up to the next $500, though on a house that's pocket change. What matters more is the size of the bill. A $400,000 sale comes to $3,440. A $650,000 sale is $5,590. A $1,200,000 lake house is $10,320.
Both statutes want the total value on the face of the deed, or in an affidavit attached to it. If the sale includes furniture, a boat or a golf cart along with the real estate, the tax applies to the real property only, provided the deed or the affidavit states the two values separately. That's worth knowing on a furnished cottage, and it's a question for your title company before closing, not the morning of.
Who writes the check
The two sections I read tax the deed and don't say which side of the table pays. That gets settled in the purchase agreement. Sellers around here customarily cover it, but it's negotiable like most terms in an offer, so I'd read that line instead of assuming.
If you're listing, put the number on your net sheet at the start. At $650,000 it's $5,590 before anything else on the statement, and I'd rather you see it at the kitchen table than on closing day. If you're buying and the offer asks you to pay it, it belongs in your cash to close.
When there's no transfer tax
The state's list of exempt transfers is in MCL 207.526, and the county act has its own list in MCL 207.505. I read the state list. It includes a deed from a parent to a child or grandchild, a boundary line adjustment with no money changing hands, a transfer in a foreclosure (a later sale by the lender isn't exempt), and a land contract where legal title doesn't pass until it's paid in full.
An exemption from transfer tax says nothing about whether the property tax cap lifts. That's a different rulebook, and it's where families get tripped up, especially with an LLC (I wrote about that version). The Property Transfer Affidavit has its own deadline too.
I haven't seen how every title company in Traverse City prints this line, so ask for a draft settlement statement before you sign an offer, and check with your attorney if your deal might fit one of the exemptions.
If you're pricing a sale or working out cash to close and want the transfer tax run on a real number, text me at (231) 360-1510 or send a note. Thinking about selling this winter or spring? Start at our selling page.
Taylor Brown, Realtor
Taylor@taylorbrownrealtor.com
Checked against the sources linked above in October 2026. I'm a Realtor, not a lawyer or tax adviser, so confirm the details with your title company, attorney or the register of deeds.
