Wayne County
House flipping in Detroit, MI: transfer taxes, property tax and a flip calculator
Every flip in Detroit pays deed and transfer taxes twice: once when you buy and once when you sell. In Wayne County they add up to about 0.86% of the price. Here is what each one is, who usually pays it, how property tax works for investors, and a calculator to run your deal.
Projected net profit
$47,476
15.8% margin on ARV over 6 months
Cash needed
$42,524
Return on cash
112%
Max offer
$170,500
$30k profit, 12% margin
70% rule
$160,500
70% of ARV minus rehab with 10% contingency
Where every dollar goes
- Purchase
- $160,000
- Rehab with contingency
- $49,500
- Buy closing costs
- $3,501
- Loan points and fees
- $5,880
- Loan interest
- $9,364
- Taxes, insurance, utilities
- $3,280
- Selling costs
- $21,000
- Total cost
- $252,524
- Break-even ARV
- $248,976
Planning defaults: hard money 11%, 2 points, $1,500 fees, 90% of price and 100% of rehab, interest on drawn funds; 5.5% commission and 1% concessions; state closing and transfer taxes. Not a quote.
Comps, rehab, refi and a verdict for a real address. Your numbers come with you.
Transfer and recording taxes in Detroit
| Level | What it is |
|---|---|
| State | Michigan state real estate transfer tax: $3.75 per $500 of value (0.75%), MCL 207.525. Seller/grantor is liable. (source) |
| Local | County real estate transfer tax: $0.55 per $500 (0.11%) statewide base rate (MCL 207.505); counties over 2 million people may charge $0.75, and Wayne is under that threshold. Total state + county 0.86%. (source) |
Who pays: seller by statute.
What it costs on a typical flip
- Buy at $200,000: deed and transfer taxes
- $1,720
- Sell at $300,000: deed and transfer taxes
- $2,580
This adds every cited rate on each side, buyer and seller, so you see the full cost of the round trip. Who actually pays each piece depends on custom and your contract. Recording fees and title insurance are extra.
Property tax in Detroit for investors
Michigan uncaps taxable value on transfer: the year after a sale, taxable value generally jumps to state equalized value (50% of market), so a buyer's tax bill can be much higher than the seller's. (source)
For a flip, property tax is part of carrying cost every month you own the house. For a rental, budget the bill the county will send after you buy, not the seller's bill.
One more Detroit rule to know
Detroit requires rental registration plus a Certificate of Compliance (after inspection) for every residential rental except owner-occupied single-family; tickets start at $400 and tenants may escrow rent if the property lacks one. (source)
Run the numbers
The calculator above uses general closing cost defaults outside Virginia, North Carolina and West Virginia. For Detroit, add the taxes above to your numbers: about $1,720 on the buy side and $2,580 on the sale in this example.
Questions
How much is the transfer tax in Detroit?
The cited deed and transfer taxes total about 0.86% of the price in Wayne County. On a $300,000 sale that is about $2,580. Who pays: seller by statute.
Is Detroit a good place to flip houses?
It depends on the deal, not the city. Buy at a price that leaves room for every cost: closing and transfer taxes on both ends, loan points and interest, carry, commission and concessions. Run the numbers on each house.
Facts checked 2026-10-10 against the linked official sources. Tax rates and fees change; confirm them with your closing attorney, title company or the locality. Not legal, tax or lending advice.
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