Buying a home in Michigan

Property taxes, transfer taxes, home values and first-time buyer help in Michigan.

Effective property tax rate

1.25%

Median tax $2,904 ÷ median value $231,600 (ACS 2020–2024)

Typical home value

$266,292

Zillow ZHVI, 2026-08

State transfer tax

0.86%

Usually paid by: seller. MCL § 207.523 (state transfer tax); MCL § 207.505 (county transfer tax). Official source. Local taxes may add more.

Estimated buyer closing costs Estimate

$2,800–$4,600

On a $266,292 home: typical lender fees + title insurance + deed recording (TallyClose) + the buyer’s share of transfer/recording taxes. Excludes prepaids, escrow and local taxes.

At Michigan's effective rate of 1.25%, a typical $266,292 home would owe about $3,329/year ($277/month) in property taxes. Actual bills depend on your county, city and exemptions. Run your numbers.

First-time homebuyer programs

Michigan State Housing Development Authority

Your state housing finance agency offers down payment assistance and low-rate mortgages for eligible buyers. Visit Michigan State Housing Development Authority →

Sources: U.S. Census Bureau ACS 2020–2024 5-year (B25103, B25077); Zillow Home Value Index; TallyClose closing-cost dataset (CC BY 4.0), which cites each state statute; NCSHA HFA directory. Last updated 2026-10-15.