Closing Costs by State: What to Expect in Every US State | CalcWise

What Drives State-by-State Differences?

The biggest variable in closing costs between states is the real estate transfer tax — a tax charged when property changes hands. Some states charge no transfer tax at all. Others charge 1–2% of the purchase price, which on a $400,000 home means $4,000–8,000 in additional costs.

Other state-specific factors include:

• Attorney requirement — some states require a real estate attorney at closing (adding $500–1,500), while others use title companies
• Title insurance rates — regulated differently by state, with costs varying significantly
• Recording fees — set by county, can range from $50 to $500+
• Local customs — who pays which fees varies by region even within states

States With the Highest Closing Costs

New York

New York consistently has the highest closing costs in the US, often exceeding 3–5% of the purchase price. Key reasons include a steep state transfer tax (0.4%), a mansion tax of 1%+ on homes over $1M, New York City's additional transfer taxes (1–2.625%), and the requirement for attorneys at closing. On a $500,000 home in NYC, closing costs can easily exceed $20,000–25,000.

Delaware

Delaware charges one of the highest transfer taxes in the nation — 4% of the purchase price, split between buyer and seller (each pays 2%). This alone adds $8,000 to a $400,000 purchase. However, Delaware has no sales tax and relatively low property taxes, which partially offsets the closing cost burden.

Maryland

Maryland charges a state transfer tax of 0.5%, plus county transfer taxes that vary from 0% to 1.5% depending on location. In Montgomery County, for example, total transfer taxes can be 1.5–2% of the purchase price. Attorney fees are common, and title insurance rates are regulated but not low.

Washington DC

The District of Columbia charges some of the highest transfer taxes in the country — 1.1% for purchases under $400,000 and 1.45% above that threshold. First-time DC homebuyers may qualify for an exemption on the first $400,000. Total closing costs in DC typically run 3–5%.

Pennsylvania

Pennsylvania has a 1% state transfer tax plus local transfer taxes that range from 1–2%, putting total transfer taxes at 2–3% of the purchase price. In Philadelphia, the combined transfer tax reaches 4.278%. Attorney fees are customary, adding to already high costs.

States With the Lowest Closing Costs

Missouri

Missouri has no state real estate transfer tax, making it one of the most affordable states for closing costs. Total closing costs typically run 0.9–1.5% of the purchase price. Recording fees and title insurance are reasonable, and the state doesn't require attorneys at closing.

Indiana

Indiana charges no real estate transfer tax, and title insurance and other fees are relatively low. Total closing costs typically range from 0.9–1.3% of the purchase price, making Indiana one of the most affordable states for buyers.

Iowa

Iowa has no transfer tax and low recording fees. Total closing costs typically run 1%–1.4%. Iowa uses a Torrens system for some properties, which can slightly increase title-related costs, but overall the state remains affordable.

Wyoming

Wyoming has no state transfer tax and low overall closing costs, typically 1%–1.5% of the purchase price. The state has no income tax either, making it attractive for buyers from a total tax burden perspective.

Montana and Idaho

Both states have minimal transfer taxes and overall closing costs that typically run 1%–1.5% of the purchase price. The Pacific Northwest has seen rising home prices, but closing cost percentages remain relatively low.

Mid-Range States: What Most Buyers Can Expect

Most US states fall in the 1.5%–2.5% range for closing costs. Key states and their approximate ranges:

• Texas — 1.5%–2.5%. No transfer tax but title insurance rates are set by the state and tend to be higher than average. Attorney not required but common in some markets.
• Florida — 1.5%–2.5%. State documentary stamp tax of 0.35% on the purchase price (paid by seller in most counties, but buyer in Miami-Dade). Title insurance rates are regulated and vary by purchase price.
• California — 1.5%–3%. State transfer tax of 0.11% plus county and city taxes that vary widely. In San Francisco, the transfer tax on homes over $10M reaches 6%. High home prices mean even a low percentage rate translates to significant dollar amounts.
• Georgia — 1.5%–2%. Intangible tax of 0.3% on the mortgage amount plus county transfer taxes. Attorney required at closing, adding $500–1,000.
• Ohio — 1%–2%. Conveyance fee of $1 per $1,000 of purchase price at state level, plus county fees up to $3/$1,000. No attorney requirement.
• Colorado — 1%–2%. Documentary fee of $0.01 per $100 of purchase price (essentially negligible) at state level. Title insurance and lender fees drive most of the cost.
• Arizona — 1%–2%. No real estate transfer tax. Closing costs driven primarily by lender fees and title insurance.
• Illinois — 1.5%–3%. State transfer tax of $0.50 per $500 of purchase price, plus county and city taxes. Chicago adds a steep city transfer tax of $7.50 per $1,000.
• Virginia — 1.5%–3%. State recordation tax plus grantor tax (paid by seller). In Northern Virginia (close to DC), costs tend to be higher.
• Washington State — 1.5%–3%. Real Estate Excise Tax (REET) ranges from 1.1% to 3% depending on purchase price, on a graduated scale. Homes over $3M pay the highest rate.

Transfer Tax Quick Reference

Here's a summary of state transfer tax rates for quick reference. Note that many counties and cities add their own taxes on top of these:

• No transfer tax: Alaska, Arizona, Idaho, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, Wyoming
• Under 0.5%: California (0.11%), Colorado (negligible), Florida (0.35%), Ohio (varies by county, typically 0.1–0.3%)
• 0.5%–1%: Georgia (0.3% intangible tax on mortgage), Illinois (0.05% state, varies locally), Maryland (0.5% state), Michigan (0.75%), Virginia (0.1–0.25%)
• 1%–2%: New Jersey (1%), New York (0.4% state + NYC add-ons), Pennsylvania (1% state + local), Washington State (1.1–3%)
• 2%+: Delaware (2% buyer's share of 4% total), Washington DC (1.1–1.45%)

How to Estimate Your Total Closing Costs

Transfer taxes are just one piece of the puzzle. Your total closing costs also include lender fees, title insurance, appraisal, and prepaid items that apply regardless of which state you're buying in. Our free Closing Costs Calculator gives you a complete itemized estimate based on your purchase price, loan amount, and location — so you know exactly what to bring to the closing table.

Tips for Reducing Closing Costs

• Negotiate seller concessions — especially in buyer's markets, sellers can agree to pay some or all of your closing costs
• Shop title companies — in most states you can choose your title company; rates vary by hundreds of dollars
• Compare lender fees — origination fees and other lender charges vary significantly between lenders
• Look for first-time buyer programs — many states offer closing cost assistance or grants for eligible buyers
• Close at end of month — closing later in the month reduces your prepaid interest (though this is a small savings)

Key Takeaways

• Closing costs vary from under 1% to over 4% of purchase price depending on the state
• Transfer taxes are the biggest variable — some states charge none, others charge 2–4%
• New York, Delaware, Maryland, and DC consistently have the highest closing costs
• Missouri, Indiana, Iowa, and Wyoming are among the most affordable states
• Always get a Loan Estimate from your lender for an itemized breakdown of your specific costs