Complete 2026 guide with data for all 50 states plus Washington D.C.
Closing costs are the closing fees and expenses every borrower pays when finalizing a real estate transaction. According to data analysis from LodeStar Software Solutions, these costs are separate from your down payment and cover services necessary for the home financing process, including lender origination costs, title insurance, appraisals, and government recording charges. Once paid, you get the keys to your new home.
For buyers, closing costs typically range from 2% to 5% of the purchase price, though this varies significantly by state. The biggest factors affecting your closing costs include:
Excluding taxes and government recording fees, the national average closing cost drops to $3,042. These prepaid costs and "lender and third-party" fees represent a large percent of the total in states with lower transfer taxes, while states with the highest transfer tax rates see government fees become the dominant expense. Interestingly, states with lower home prices often have higher closing costs as a percentage of sale price due to fixed fees.
| Rank | State | Average Closing Costs | % of Sale Price | Avg. Home Price |
|---|---|---|---|---|
| 1 | Washington, D.C. | $17,545 | 2.39% | $734,310 |
| 2 | New York | $13,738 | 2.47% | $556,194 |
| 3 | Delaware | $12,157 | 2.99% | $406,589 |
| 4 | Maryland | $9,218 | 2.03% | $454,089 |
| 5 | Vermont | $8,597 | 2.2% | $390,773 |
| 6 | Florida | $8,492 | 1.82% | $466,593 |
| 7 | Pennsylvania | $8,259 | 2.36% | $349,958 |
| 8 | New Hampshire | $7,034 | 1.34% | $524,925 |
| 9 | Virginia | $6,817 | 1.36% | $501,250 |
| 10 | Washington | $5,995 | 1.01% | $593,564 |
Washington D.C. ($17,545): The nation's capital has the highest closing costs due to its 1.1% transfer tax on properties under $400,000 and 1.45% on properties above that threshold, plus high real estate prices averaging over $734,000.
New York ($13,738): New York's transfer tax of 0.4% statewide, plus an additional 1% "mansion tax" on homes over $1 million (and up to 4.15% on ultra-luxury properties), drives up costs significantly. NYC adds its own transfer tax on top.
Delaware ($12,157): Delaware charges a 3% transfer tax on homes valued over $400,000, one of the highest rates in the nation. For a $500,000 home, that's $15,000 in transfer tax alone.
Maryland ($9,218): Maryland's transfer tax of 0.5% plus county transfer taxes (ranging from 0% to 1.5% depending on county) add up quickly. Many Maryland counties also charge recordation taxes.
| Rank | State | Average Closing Costs | % of Sale Price | Avg. Home Price |
|---|---|---|---|---|
| 51 | South Dakota | $1,551 | 0.46% | $337,174 |
| 50 | Iowa | $1,640 | 0.64% | $256,250 |
| 49 | Missouri | $1,740 | 0.6% | $290,000 |
| 48 | Indiana | $1,810 | 0.7% | $258,571 |
| 47 | North Dakota | $2,243 | 0.69% | $325,072 |
| 46 | Mississippi | $2,332 | 0.98% | $238,000 |
| 45 | Nebraska | $2,344 | 0.74% | $316,757 |
| 44 | Kansas | $2,369 | 0.8% | $296,125 |
| 43 | Arkansas | $2,440 | 0.84% | $290,476 |
| 42 | Kentucky | $2,475 | 0.91% | $272,033 |
South Dakota ($1,551): South Dakota has minimal transfer taxes and relatively low home prices. The state's simple regulatory environment keeps title and legal costs down.
Iowa ($1,640): Iowa has one of the lowest transfer tax rates at $0.80 per $500 (0.16%), and moderate home prices around $256,000 keep overall costs minimal.
Missouri ($1,740): Missouri charges no state transfer tax, leaving only local taxes in some areas. Combined with affordable housing, this results in very low closing costs.
Indiana ($1,810): Indiana has no state transfer tax and relatively affordable homes. The state's straightforward closing process keeps third-party fees reasonable.
| State | Closing Costs | % of Price | Avg. Home Price | Transfer Tax? | Rank |
|---|---|---|---|---|---|
| Alabama | $2,791 | 0.89% | $313,596 | Yes | #39 |
| Alaska | $3,683 | 0.94% | $391,809 | No | #24 |
| Arizona | $3,574 | 0.76% | $470,263 | Yes | #25 |
| Arkansas | $2,440 | 0.84% | $290,476 | Yes | #43 |
| California | $5,962 | 0.74% | $805,405 | Yes | #11 |
| Colorado | $3,479 | 0.59% | $589,661 | Yes | #29 |
| Connecticut | $4,249 | 0.93% | $457,097 | Yes | #18 |
| Delaware | $12,157 | 2.99% | $406,589 | Yes | #3 |
| Florida | $8,492 | 1.82% | $466,593 | Yes | #6 |
| Georgia | $5,106 | 1.24% | $411,774 | Yes | #15 |
| Hawaii | $5,921 | 0.62% | $955,000 | Yes | #12 |
| Idaho | $3,497 | 0.7% | $499,571 | No | #27 |
| Illinois | $4,702 | 1.3% | $361,692 | Yes | #17 |
| Indiana | $1,810 | 0.7% | $258,571 | No | #48 |
| Iowa | $1,640 | 0.64% | $256,250 | Yes | #50 |
| Kansas | $2,369 | 0.8% | $296,125 | No | #44 |
| Kentucky | $2,475 | 0.91% | $272,033 | Yes | #42 |
| Louisiana | $3,513 | 1.2% | $292,750 | No | #26 |
| Maine | $3,437 | 0.88% | $390,568 | Yes | #30 |
| Maryland | $9,218 | 2.03% | $454,089 | Yes | #4 |
| Massachusetts | $5,112 | 0.81% | $631,111 | Yes | #14 |
| Michigan | $4,138 | 1.08% | $383,148 | Yes | #20 |
| Minnesota | $3,492 | 0.91% | $383,736 | Yes | #28 |
| Mississippi | $2,332 | 0.98% | $238,000 | No | #46 |
| Missouri | $1,740 | 0.6% | $290,000 | No | #49 |
| Montana | $3,157 | 0.6% | $526,167 | No | #34 |
| Nebraska | $2,344 | 0.74% | $316,757 | Yes | #45 |
| Nevada | $4,157 | 0.84% | $494,881 | Yes | #19 |
| New Hampshire | $7,034 | 1.34% | $524,925 | Yes | #8 |
| New Jersey | $5,410 | 0.92% | $588,043 | Yes | #13 |
| New Mexico | $3,011 | 0.84% | $358,452 | No | #36 |
| New York | $13,738 | 2.47% | $556,194 | Yes | #2 |
| North Carolina | $2,480 | 0.56% | $442,857 | Yes | #41 |
| North Dakota | $2,243 | 0.69% | $325,072 | No | #47 |
| Ohio | $3,394 | 1.07% | $317,196 | Yes | #31 |
| Oklahoma | $2,896 | 1.08% | $268,148 | Yes | #37 |
| Oregon | $3,207 | 0.67% | $478,657 | No | #33 |
| Pennsylvania | $8,259 | 2.36% | $349,958 | Yes | #7 |
| Rhode Island | $3,810 | 0.75% | $508,000 | Yes | #22 |
| South Carolina | $2,883 | 0.65% | $443,538 | Yes | #38 |
| South Dakota | $1,551 | 0.46% | $337,174 | Yes | #51 |
| Tennessee | $5,063 | 1.18% | $428,983 | Yes | #16 |
| Texas | $3,713 | 0.93% | $399,254 | No | #23 |
| Utah | $3,997 | 0.72% | $555,139 | No | #21 |
| Vermont | $8,597 | 2.2% | $390,773 | Yes | #5 |
| Virginia | $6,817 | 1.36% | $501,250 | Yes | #9 |
| Washington | $5,995 | 1.01% | $593,564 | Yes | #10 |
| Washington, D.C. | $17,545 | 2.39% | $734,310 | Yes | #1 |
| West Virginia | $3,272 | 1.14% | $287,018 | Yes | #32 |
| Wisconsin | $2,741 | 0.76% | $360,658 | Yes | #40 |
| Wyoming | $3,070 | 0.76% | $403,947 | No | #35 |
Source: LodeStar Software Solutions 2025 Purchase Mortgage Closing Cost Data Report. Costs include taxes and recording fees.
| Fee Type | Typical Cost | Description |
|---|---|---|
| Loan Origination Fee | 0.5% - 1% | Fee charged by lender to process your loan application |
| Appraisal Fee | $300 - $600 | Cost to have a professional assess the home's market value |
| Title Search & Insurance | $1,000 - $4,000 | Protects against claims on the property's ownership |
| Attorney Fees | $500 - $2,000 | Legal review of documents, required in some states |
| Credit Report Fee | $25 - $50 | Cost for lender to pull your credit history |
| Recording Fees | $50 - $250 | Government fee to record the deed and mortgage |
| Transfer Tax | Varies by state | State or local tax on property transfer |
| Escrow Deposits | 2 - 3 months | Prepaid property taxes and homeowners insurance |
| Survey Fee | $300 - $700 | Confirms property boundaries, not always required |
| Flood Certification | $15 - $25 | Determines if property is in a flood zone |
Real estate transfer taxes are state or local taxes imposed when property ownership changes hands. These taxes can significantly impact your closing costs and vary dramatically from state to state.
These 14 states charge no state-level transfer tax on real estate transactions:
Note: Some counties or cities in these states may still charge local transfer taxes. Oregon exempts most counties but a few charge local fees.
2% - 5% of purchase price
6% - 10% of sale price
Note: Who pays what is often negotiable and varies by local custom. In some markets, sellers commonly pay for the owner's title insurance policy. In others, buyers cover it. Transfer tax responsibility also varies by state.
Get loan estimates from at least 3 lenders. Origination fees, points, and other lender charges can vary by thousands of dollars. Use the standardized Loan Estimate form to compare apples to apples.
Ask the seller to contribute toward closing costs, especially in a buyer's market. Sellers can typically contribute up to 3% - 6% of the purchase price depending on your loan type.
Title insurance and title search fees are shoppable in most states. Get quotes from multiple title companies. Savings of $500 - $1,500 are common.
Some lenders offer credits to offset closing costs in exchange for a slightly higher interest rate. If you plan to refinance or move within a few years, this can make sense.
Prepaid interest is calculated from your closing date to the end of the month. Closing on the 28th means 2 - 3 days of prepaid interest versus 30 days if you close on the 1st.
Many states offer closing cost assistance for first-time homebuyers. FHA and VA loans also have options for reduced or waived fees.
Use this quick formula to estimate your closing costs based on your state and purchase price:
Estimated Closing Costs =
Purchase Price × State Percentage
Low-cost states
0.5% - 0.8%
SD, IA, MO, IN
Average states
0.8% - 1.5%
Most states
High-cost states
1.5% - 3%
NY, DE, MD, DC
Example: A $400,000 home in New York (2.47%) would have estimated closing costs of approximately $9,880.
Yes, several closing costs are negotiable. You can shop for title insurance, compare lender fees, ask the seller to contribute, and negotiate with service providers. Lender fees, origination charges, and some third-party fees often have room for negotiation. Government fees and taxes are fixed.
In some cases, yes. This is called a "no-closing-cost mortgage." The lender covers the costs in exchange for a higher interest rate. You pay more over the life of the loan but less upfront. For FHA and VA loans, you can finance some closing costs. Conventional loans typically require separate payment.
Both pay closing costs, but they cover different expenses. Buyers typically pay lender fees, appraisal, title insurance, and escrow deposits. Sellers usually pay real estate commissions and may pay transfer taxes. The specifics vary by state and can be negotiated in the purchase agreement.
Closing costs are due on closing day when you sign the final paperwork and receive the keys. You'll receive a Closing Disclosure at least 3 days before closing that shows the exact amount due. Payment is typically by wire transfer or cashier's check.
Some are. You can deduct mortgage points (discount points) in the year you buy, property taxes paid at closing, and mortgage interest. Most other closing costs are not deductible for your primary residence but may be added to your home's cost basis for calculating capital gains when you sell.
The closing cost data in this guide comes from the LodeStar Software Solutions 2025 Purchase Mortgage Closing Cost Data Report, which analyzes actual closing transactions nationwide. Closing costs vary greatly across the U.S., with fees associated with title-related services, deed recording, and lender service fees contributing to total costs. The least expensive states have minimal transfer taxes.
Closing costs include all lender fees, title insurance, appraisal fees, recording charges, and applicable state and local transfer taxes. The percentage is calculated against the average home sale price in each state.
This guide was last updated in February 2026 using 2025 data.
Use the following citation to reference this data:
Real Estate Agents Near Me. "Closing Costs by State: Complete 2026 Guide." realestateagentnearme.com, February 2026, https://realestateagentnearme.com/closing-costs-by-state/
Average closing costs range from 2% to 5% of the purchase price. On a $400,000 home, expect $8,000 to $20,000. The exact amount varies by state due to transfer taxes, title insurance, and attorney fees.
New York and Delaware consistently rank highest due to high transfer taxes and mandatory attorney involvement. New York buyers can expect 3.5% to 6% of the purchase price in closing costs.
Missouri, Indiana, and Nebraska typically have the lowest, often under 2% of the purchase price. These states benefit from low or no transfer taxes and fewer mandatory fees.
Both buyers and sellers pay different types. Buyers cover lender fees, appraisal, title insurance, and prepaid items. Sellers pay real estate agent commissions and transfer taxes. Sellers may offer concessions to cover some buyer costs.
Yes. Shop around for title insurance, ask lenders to reduce fees, negotiate seller concessions (3-6% depending on loan type), request lender credits, and compare Loan Estimates from multiple lenders.