Plain-language answers to every closing cost question for US home buyers and sellers.
Closing costs are fees and taxes paid at the settlement of a real estate transaction, on top of the property price. They typically include transfer taxes (paid to state and local governments), deed and mortgage recording fees (paid to the county recorder), title insurance (a one-time premium protecting ownership), and real estate agent commissions. For buyers, closing costs typically run 2–5% of the purchase price. For sellers, 1–3% plus agent commission.
Both sides pay closing costs, but different ones. Buyers typically pay recording fees, lender fees, and a portion of transfer taxes. Sellers typically pay the agent commissions, any seller-side transfer taxes, and title insurance in some states. The exact split depends on state law, local custom, and what is negotiated in the purchase contract.
US closing costs average roughly 2–5% of the purchase price for buyers and 1–3% for sellers (not counting agent commissions). On a $400,000 home, a buyer might pay $8,000–$20,000 in closing costs. These vary widely by state — some states have no transfer tax at all, while others (like New York, Pennsylvania, or Delaware) have taxes that can exceed 2% of the price on their own.
Closing costs are paid at settlement — the day you sign documents and transfer ownership. Buyers receive a Closing Disclosure from their lender at least 3 business days before closing showing all fees. You bring the net amount (often via wire transfer or cashier's check) to the closing table.
In some cases, yes. Some lenders offer "no-closing-cost" mortgages where costs are built into a slightly higher interest rate, or added to the loan balance. This reduces cash needed at closing but increases the total cost of the loan over time. Transfer taxes and government fees cannot be financed this way.
A transfer tax (also called a documentary stamp tax, deed tax, or conveyance tax) is a government tax on the transfer of property ownership. It is calculated as a percentage of the sale price or a fixed rate per $500 or $1,000 of value. Transfer taxes are levied at the state level in most states, and sometimes additionally at the county or city level.
The following states currently impose no state-level real estate transfer tax: Alaska, Arizona, Idaho, Indiana, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon (except Washington County), Texas, Utah, and Wyoming. However, even in these states, counties or municipalities may have their own transfer taxes.
Transfer taxes are highest in: Delaware (4% combined), New York (1.4–2.65% state, plus NYC adds up to 2.075%), Pennsylvania (2% state, plus 1–3% local), Washington DC (1.1–1.45% each for buyer and seller), Connecticut (0.75–1.25%), and Maryland (0.5% state plus county recordation taxes of 0.5–1.5%).
Recording fees are charged by the county recorder (or register of deeds) to officially record the deed and mortgage in the public record. This creates the legal paper trail showing who owns the property and what liens exist. Deed recording fees typically run $25–$150 for a standard deed; mortgage recording fees are similar or slightly higher.
Buyers typically pay the cost of recording the deed and mortgage (since they are creating the new ownership record and mortgage lien). Sellers may pay to record a release of their mortgage if one exists.
Title insurance protects against defects in the ownership history of a property — things like undisclosed liens, forged documents in the chain of title, or mistakes in public records. There are two types: owner's title insurance (protects the buyer) and lender's title insurance (required by most mortgage lenders, protects the bank). Unlike most insurance, title insurance is a one-time premium paid at closing. Owner's title insurance is optional but strongly recommended.
Title insurance premiums are typically based on the sale price (for owner's) or loan amount (for lender's). Rates are either set by state regulation (in Florida, Texas, and others) or filed by individual underwriters. A rough estimate for a $400,000 home is $1,000–$2,000 for owner's coverage. Simultaneous issue (buying both owner's and lender's at the same time) usually comes with a significant discount on the lender's policy.
myClosingCost uses verified transfer tax rates, county recording fee schedules, and title insurance rate filings for all 50 states and Washington DC. Our data covers 190 million US residential addresses across 3,100+ counties. Estimates are for informational purposes — always confirm exact figures with your title company before closing.
Yes. The calculator is completely free for buyers and sellers. No account is required. If you choose to connect with a real estate agent through the platform, the agent pays a small introduction fee — there is no cost to you.
Enter the full street address (not just a zip code). The calculator uses your exact address to determine the county, municipality, and school district, and applies all applicable tax layers. Also enter the expected sale price — transfer taxes and title insurance premiums are both price-dependent.
Every address in the US has a different combination of state, county, and local taxes. Enter yours for an instant, itemized breakdown.
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