Taxes on Selling a House in Michigan

If you’re in the process of selling your Michigan home, you’ve likely had questions about taxes and what you might owe before the transaction is complete. There are several different taxes to consider, from property taxes to transfer taxes, and it can feel overwhelming to keep it all straight. But don’t worry. Our quick guide will help you understand the full scope of taxes on selling a house in Michigan, giving you the tools to sell your home quickly and with peace of mind. What's Your Michigan Home Worth? Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes. Capital gains tax You’ve likely heard the term “capital gains tax,” but what is it? When you sell a “capital asset,” which you own, such as a piece of real estate, that is not used for a business, any profits the sale yields are considered capital gains. Capital assets most commonly include things like your home or vehicle but can also include stocks, bonds, or art. A capital gains tax is a tax levied on any capital gains earned...