Texas Closing Costs: No State Transfer Tax — What Buyers & Sellers Pay
Texas is one of the most favorable states for real estate transfers because it has no state deed transfer tax. This guide explains what buyers and sellers actually pay at a Texas closing.
Texas Has No State Deed Transfer Tax
Verified against the Texas Comptroller of Public Accounts (comptroller.texas.gov): Texas imposes no state-level deed transfer or documentary stamp tax on real property sales, as of June 2026.
This contrasts with states like Florida (0.70%), New York (0.40%), and California (0.11%), where the transfer tax alone can add thousands of dollars to closing costs.
What Buyers Pay at Closing in Texas
| Item | Typical Range | Notes |
|---|---|---|
| Lender Origination & Processing Fees | 0.5%–1.5% of loan amount | Estimate — request Loan Estimate from lender |
| Title Insurance (lender's policy) | ~0.3%–0.5% of loan | Rate set by TX Dept. of Insurance |
| County Recording Fee | $75–$175 | County-set; Travis County: $25 + $4/pg |
| Escrow / Settlement Fee | $300–$800 | Varies by title company |
| Appraisal Fee | $400–$700 | Lender-ordered |
| Prepaid Property Taxes | Varies | Prorated to closing date |
| Homeowner's Insurance (prepaid) | First year premium | Varies by property and insurer |
All ranges are estimates. Verify with your lender (Loan Estimate) and title company for binding figures.
What Sellers Pay at Closing in Texas
| Item | Typical Range | Notes |
|---|---|---|
| State Deed Transfer Tax | $0 | Texas has none — verified comptroller.texas.gov |
| Title Insurance (owner's policy) | ~0.3%–0.6% of price | Seller customarily pays in most TX counties |
| Real Estate Agent Commission | Negotiable | Not a closing cost per se; separate agreement |
| Survey Fee | $400–$700 | If required for this transaction |
| HOA Transfer Fees | $100–$400 | If applicable |
Texas Title Insurance Rates
Texas is unique in that title insurance rates are promulgated (set) by the state through the Texas Department of Insurance. Every title company charges the same rate for the same property value. The TDI publishes the current rate schedule at tdi.texas.gov. While the rate is uniform, some title companies offer additional services or package deals.
County Recording Fee Examples
Fees are set by each county clerk, not the state:
- Travis County (Austin): $25 first page + $4 per additional page — countyclerk.traviscountytx.gov
- Harris County (Houston): Similar structure to Travis County; verify at your county clerk's website
- Dallas County: $26 first page + $4 per additional page — verify at dallascounty.org
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Frequently Asked Questions
No. Texas has no state-level deed transfer tax. This is one of the key advantages for Texas real estate transactions. Source: Texas Comptroller of Public Accounts (comptroller.texas.gov), verified June 2026.
Texas buyers typically pay 2%–4% of the purchase price in closing costs, including lender origination fees (0.5%–1.5%), title insurance (lender's policy), recording fees ($75–$175 typical), escrow fees, and prepaid items like property taxes and homeowner's insurance. There is no state deed transfer tax to add.
Texas sellers have no state transfer tax to pay, which keeps seller closing costs lower than many other states. Sellers typically pay real estate agent commissions (if applicable), title insurance (owner's policy, by custom in most Texas counties), and any agreed-upon concessions. Total seller costs (excluding agent commission) are often 0.5%–1.5% of the sale price.
Recording fees are set by each county clerk, not the state. Travis County (Austin): $25 for the first page + $4 per additional page (countyclerk.traviscountytx.gov). Harris County (Houston) and other major counties have similar structures. Typical deed recording runs $75–$175 depending on document length and county.
By custom in most Texas counties, the seller pays for the owner's title insurance policy. The buyer pays for the lender's title insurance policy (if using a mortgage). Texas title insurance rates are set by the Texas Department of Insurance (TDI) — they are the same from all title companies, so price varies only by property value and loan amount.