Who Pays Closing Costs by State — Buyer vs. Seller Guide
Who pays closing costs depends on which state you're in, which specific cost you're looking at, and what the purchase contract says. This guide explains the customs and statutory rules for buyer vs. seller closing costs.
Quick Reference: Transfer Tax Payer by State
Transfer/deed tax is often the largest closing cost line item (aside from agent commissions). Here are the verified states in this calculator:
| State | Transfer Tax Rate | Who Customarily Pays | Source |
|---|---|---|---|
| Florida | 0.70% ($0.70/$100) | Seller (except Broward County: buyer) | §201.02(1)(a) F.S. / floridarevenue.com |
| Texas | None | N/A | comptroller.texas.gov |
| California | 0.11% county ($1.10/$1,000) | Seller (county); varies by city | RTC §11911 / leginfo.legislature.ca.gov |
| New York (state) | 0.40% ($2/$500) | Seller (state tax); buyer (mansion tax ≥$1M) | Tax Law Art. 31 / tax.ny.gov |
| NYC (RPTT) | 1.0%–1.425% residential | Seller | nyc.gov/finance |
| Georgia | ~0.10% ($1/$1K + $0.10/$100) | Seller | dor.georgia.gov |
All rates verified against primary sources, as of June 2026. The purchase contract can reassign who actually writes the check — these are statutory liability defaults and local customs.
Title Insurance: Who Pays by Region?
Title insurance customs vary regionally and are negotiable:
| Region | Owner's Policy | Lender's Policy |
|---|---|---|
| Florida (most counties) | Seller pays | Buyer pays |
| Texas (most counties) | Seller pays (by custom) | Buyer pays |
| California (most counties) | Seller pays | Buyer pays |
| New York State | Buyer pays | Buyer pays |
| Georgia | Negotiable | Buyer pays |
These are customs, not statutes — any closing cost can be allocated by the purchase contract.
Seller Concessions: What Are They?
A seller concession (also called "seller-paid closing costs") is when the seller agrees to credit the buyer for some closing costs. Limits depend on loan type and down payment:
- Conventional loan, ≥25% down: up to 9% of purchase price
- Conventional loan, 10%–24.99% down: up to 6%
- Conventional loan, <10% down: up to 3%
- FHA loan: up to 6%
- VA loan: up to 4% (seller concessions only)
These limits are set by Fannie Mae/Freddie Mac and FHA/VA guidelines — verify with your lender for current limits.
Use the Calculator
Enter your state, purchase price, and whether you are the buyer or seller in the closing costs calculator to see an itemized breakdown with verified transfer tax figures and estimate ranges for title and lender fees.
Frequently Asked Questions
It varies by state. In Florida, Georgia, and most of New York, the seller customarily pays state transfer/deed tax. In California, the seller typically pays county Documentary Transfer Tax. In New York, the buyer pays the mansion tax (on $1M+ residential) but the seller pays the state transfer tax. Texas has no state transfer tax.
Yes. While custom and state law determine who is liable for each tax, many closing costs can be negotiated in the purchase contract. "Seller concessions" — where the seller agrees to cover some of the buyer's closing costs — are common, especially in buyer's markets. The limits on concessions depend on your loan type.
Sellers typically pay: state/deed transfer tax (in most states), real estate agent commissions (if using agents), title insurance (owner's policy in some states), attorney fees (in attorney-closing states), and any property tax prorations or HOA fees owed up to the closing date. In most states, sellers' closing costs (excluding commissions) run 1%–3% of the sale price.
Buyers typically pay: lender origination and underwriting fees, the lender's title insurance policy, recording fees, appraisal, credit report fees, prepaid property taxes, prepaid homeowner's insurance, and mortgage recording tax (in states that have it, like NY). In most markets, buyer closing costs (excluding down payment) run 2%–4% of the purchase price.