Closing costs are one of the most misunderstood expenses in real estate. Most buyers focus on the down payment and forget that closing day brings its own separate bill — typically running from 1% to 3% of the purchase price, due in cash on top of the down payment. But closing costs are not uniform. A buyer purchasing a $462,000 home in New York pays an estimated $13,640 in closing costs. The same buyer purchasing the same $462,000 home in Indiana would pay approximately $4,620. The $9,000 gap is driven by state-specific transfer taxes, attorney requirements, title insurance pricing, and local government fees that vary dramatically by jurisdiction. Understanding how your state compares gives you a realistic number to budget for before you start shopping.
Closing Costs by State 2026: All 50 States
The table below shows average closing cost percentages, estimated dollar amounts based on median home prices, transfer tax rates, whether an attorney is required at closing, and median home prices for all 50 states. Data reflects 2026 real estate market conditions and state regulatory requirements.
| State | Closing Cost % | Avg Closing Cost ($) | Transfer Tax | Attorney Required | Median Home Price |
|---|---|---|---|---|---|
| Alabama | 1.8% | $7,240 | 0.10% | Yes | $204,000 |
| Alaska | 1.4% | $5,740 | None | No | $362,000 |
| Arizona | 1.3% | $5,590 | None | No | $410,000 |
| Arkansas | 1.6% | $5,200 | 0.33% | No | $210,000 |
| California | 1.2% | $9,980 | 0.11% | No | $840,000 |
| Colorado | 1.2% | $5,640 | 0.01% | No | $562,000 |
| Connecticut | 2.9% | $12,180 | 0.75% | Yes | $380,000 |
| Delaware | 2.1% | $8,610 | 1.50% | Yes | $362,000 |
| Florida | 2.0% | $8,220 | 0.70% | Yes | $410,000 |
| Georgia | 1.8% | $7,380 | 0.10% | Yes | $315,000 |
| Hawaii | 1.6% | $13,000 | 0.10% | No | $820,000 |
| Idaho | 1.4% | $5,460 | None | No | $420,000 |
| Illinois | 1.8% | $7,200 | 0.10% | No | $262,000 |
| Indiana | 1.0% | $3,860 | None | No | $238,000 |
| Iowa | 1.7% | $5,100 | 0.16% | No | $198,000 |
| Kansas | 1.4% | $4,760 | None | Yes | $238,000 |
| Kentucky | 1.9% | $6,080 | 0.10% | Yes | $212,000 |
| Louisiana | 1.7% | $6,460 | None | Yes | $194,000 |
| Maine | 2.1% | $7,560 | 0.44% | Yes | $360,000 |
| Maryland | 2.8% | $12,040 | 0.50% | Yes | $420,000 |
| Massachusetts | 2.1% | $9,870 | 0.46% | Yes | $562,000 |
| Michigan | 1.7% | $6,120 | 0.75% | No | $248,000 |
| Minnesota | 1.5% | $5,400 | 0.33% | No | $332,000 |
| Mississippi | 2.0% | $6,000 | 0.10% | Yes | $188,000 |
| Missouri | 0.9% | $3,060 | None | No | $232,000 |
| Montana | 1.5% | $6,600 | None | No | $398,000 |
| Nebraska | 1.6% | $5,120 | 0.23% | No | $221,000 |
| Nevada | 1.5% | $6,150 | 0.51% | No | $420,000 |
| New Hampshire | 2.0% | $8,400 | 1.50% | Yes | $462,000 |
| New Jersey | 2.5% | $11,625 | 1.00% | Yes | $472,000 |
| New Mexico | 1.4% | $4,760 | None | No | $298,000 |
| New York | 3.1% | $13,640 | 0.40% | Yes | $462,000 |
| North Carolina | 1.7% | $6,120 | 0.20% | Yes | $362,000 |
| North Dakota | 1.1% | $3,960 | None | Yes | $248,000 |
| Ohio | 1.5% | $5,400 | 0.10% | Yes | $248,000 |
| Oklahoma | 1.6% | $4,800 | None | Yes | $198,000 |
| Oregon | 1.8% | $6,840 | None | Yes | $420,000 |
| Pennsylvania | 2.0% | $8,400 | 1.00% | Yes | $298,000 |
| Rhode Island | 2.1% | $8,820 | 0.46% | Yes | $398,000 |
| South Carolina | 1.8% | $6,300 | 0.37% | Yes | $298,000 |
| South Dakota | 1.2% | $3,960 | None | No | $248,000 |
| Tennessee | 1.7% | $6,290 | 0.37% | No | $332,000 |
| Texas | 1.5% | $5,400 | None | No | $298,000 |
| Utah | 1.2% | $4,560 | None | No | $462,000 |
| Vermont | 2.1% | $8,400 | 1.45% | Yes | $398,000 |
| Virginia | 2.0% | $8,600 | 0.25% | Yes | $420,000 |
| Washington | 2.7% | $11,610 | 1.28% | No | $562,000 |
| West Virginia | 2.2% | $3,344 | 0.22% | Yes | $152,000 |
| Wisconsin | 1.5% | $5,400 | 0.30% | No | $262,000 |
| Wyoming | 1.2% | $4,200 | None | No | $362,000 |
States with the Highest Closing Costs
The five states with the highest closing costs in 2026 are all northeastern states with high transfer taxes, mandatory attorney involvement, and expensive housing markets.
New York (3.1% / $13,640) has the highest closing costs of any state. New York 0.40% transfer tax applies statewide, but New York City adds a mortgage recording tax (0.8% to 1.925%) and a mansion tax (1% on purchases over $1 million). Attorney fees are mandatory, and title insurance premiums are among the highest in the nation.
Connecticut (2.9% / $12,180) imposes a base transfer tax of 0.75% plus an additional 1.25% surcharge on residential properties over $2.5 million. Attorney representation is required by law, and the state high median home prices amplify the dollar impact.
Hawaii (1.6% / $13,000) ranks third in dollar terms despite a moderate percentage rate, purely because of its extreme home prices. Hawaii $820,000 median home price means even modest percentage-based fees generate large dollar amounts.
Maryland (2.8% / $12,040) combines a 0.50% state transfer tax with county transfer taxes (0.5-1.0% depending on county), plus mandatory attorney fees in most jurisdictions. First-time homebuyers receive a transfer tax exemption on the state portion.
New Jersey (2.5% / $11,625) applies a 1.0% transfer tax on most residential sales, plus a 1.0% mansion tax on purchases over $1 million. Both buyer and seller attorney representation is standard practice, adding $1,500 to $3,000 to closing costs.
States with the Lowest Closing Costs
The lowest-closing-cost states combine no or minimal transfer taxes with non-attorney closing states and affordable housing markets.
Missouri (0.9% / $3,060) has the lowest closing costs in the country — both by percentage and by dollar amount. Missouri charges no real estate transfer tax, does not require attorney representation, and has a competitive title insurance market. The affordable median home price of $232,000 keeps dollar costs low.
Indiana (1.0% / $3,860) is the second-lowest, also with no transfer tax and no attorney requirement. Indiana title and escrow industry is competitive, keeping lender and third-party fees lower than in attorney-required states.
North Dakota (1.1% / $3,960) and South Dakota (1.2% / $3,960) both have no transfer tax and relatively affordable housing. Both states maintain efficient closing processes that minimize fees.
Utah (1.2% / $4,560) is the low-cost leader among western states. No transfer tax, no attorney requirement, and a streamlined escrow-based closing process keep costs down even as Utah $462,000 median home price has risen significantly.
How to Use Closing Cost by State Data When Buying or Selling
For buyers: build closing costs into your pre-approval budget. The biggest mistake first-time buyers make is calculating how much home they can afford based solely on mortgage payment, then being surprised by closing costs at the end. If you are buying in New York, Connecticut, or Maryland, budget 2.5 to 3.1 percent of purchase price in closing costs on top of your down payment. In Missouri, Indiana, or South Dakota, budget 0.9 to 1.2 percent.
Negotiate seller concessions in high-closing-cost states. In states where closing costs exceed 2%, it is common practice to negotiate seller concessions where the seller credits you a dollar amount toward your closing costs. A $10,000 seller concession on a $400,000 home financed at 7% over 30 years costs slightly more monthly but is manageable versus coming up with $10,000 in additional cash.
Shop third-party fees aggressively. Your lender controls origination fees, but title insurance, settlement and escrow fees, and survey costs can often be shopped independently. In non-attorney states including California, Texas, Colorado, and most of the West, you can choose your own title company. Getting three quotes for title insurance alone can save $300 to $800.
Understand transfer tax — who pays it matters. Transfer tax is split differently by state and local custom. In some states (New York, New Jersey), the buyer pays. In others (California, most of the South), it is split or paid entirely by the seller. In states with no transfer tax (Texas, Florida, Alaska, Wyoming), neither party pays.
If attorney presence is required, choose your own. In states that require attorney involvement at closing, you do not have to use the closing attorney recommended by your real estate agent or lender. Shopping for real estate attorneys can save $300 to $700.
First-time buyer programs can reduce closing costs significantly. Maryland, Virginia, Colorado, and many other states offer closing cost assistance programs for first-time buyers, often in the form of grants or low-interest second mortgages. These programs can provide $3,000 to $10,000 in closing cost assistance.
Frequently Asked Questions About Closing Costs by State
What is included in closing costs?
Closing costs typically include lender fees (origination fee, discount points), third-party fees (title search, title insurance, appraisal, survey), government fees (transfer taxes, recording fees), prepaid items (homeowner insurance, property tax escrow, prepaid interest), and attorney fees in states that require them.
Who pays closing costs — the buyer or the seller?
Typically both. Buyers pay lender fees, title insurance, their attorney where required, and prepaid items. Sellers typically pay real estate agent commissions, their own attorney, transfer taxes in some states, and property tax prorations. The closing cost percentages in this table are buyer-side costs only.
Can closing costs be rolled into the mortgage?
Not directly — closing costs must generally be paid in cash at closing. However, a no-closing-cost mortgage has the lender absorb your costs in exchange for a slightly higher interest rate, and seller concessions allow the seller to credit you for closing costs, effectively financing them as part of the purchase price.
How much should I budget for closing costs as a first-time buyer?
Use the percentage for your state from the table as your starting estimate, plus a 0.2-0.5% buffer. In high-closing-cost states like New York, Maryland, and Connecticut, budget at least 3% of purchase price. In low-closing-cost states like Missouri and Indiana, 1.0-1.5% is sufficient.
What is the difference between transfer tax and recording fees?
Transfer tax is a state or local tax on the transfer of real property ownership, calculated as a percentage of sale price — this is the biggest variable among states. Recording fees are flat fees charged by the county clerk to record the deed and mortgage in public records, typically $50-$250 and relatively uniform across states.
Ready to Calculate Your Actual Closing Costs?
The percentages in this guide give you an accurate benchmark, but your actual closing costs depend on your specific loan amount, lender, county, and property type. Use the closing cost calculator to get a line-by-line estimate for your state and purchase price, or run the numbers through the mortgage calculator to model your total cost of purchase including your down payment, closing costs, and 30-year interest expense. For buyers comparing states for a relocation, the closing cost gap between a low-cost state like Missouri and a high-cost state like Washington is more than $8,000 on the same priced home — a real factor in your total relocation budget worth modeling before you commit to a market.
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- TurboTax Premier — Helps homebuyers track and deduct closing costs and mortgage interest on their taxes, directly relevant to managing closing cost expenses
- LendingTree Mortgage Offers — Allows users to compare lenders and get mortgage quotes, helping buyers understand total costs including closing fees across different loan options
- Zillow Home Loans — Provides mortgage calculators and lender comparisons that break down closing costs by state and loan type, directly supporting the post’s educational content
Related: Closing Costs by State 2026: Complete Breakdown All 50 States