Quick answer
The CFPB puts typical closing costs at 2% to 5% of the purchase price — $8,000 to $20,000 on a $400,000 home. The biggest state-to-state difference is the real estate transfer tax: on a $400,000 sale it is $4,400 in Washington, $4,000 in Pennsylvania and nothing at state level in Texas. Who pays it depends on state law and your contract.
Key facts
What the estimate includes
| Item | How it is estimated |
|---|---|
| State transfer tax | Your state’s statewide rate or bracket schedule, times the price, times your share |
| State mortgage tax | Applies in a handful of states (for example Florida, Georgia, Minnesota, New York, Tennessee and Virginia) |
| Texas title policy | The owner’s policy premium from the Texas Department of Insurance’s promulgated rates |
| Prepaid interest | Daily interest from closing to the end of the month |
| First-year insurance | Price × Freddie Mac’s average premium per $1,000 of value |
| Escrow cushion | Up to 2 months of property tax and insurance — the most Regulation X lets a lender hold back |
| Lender and third-party fees | What you enter from sections A, B and C of your Loan Estimate |
Local add-ons — county and city transfer taxes, such as New York City’s, and recording fees — are not included because they depend on the exact address. The state note under the result names the ones the source mentions.
Transfer taxes on a $400,000 home
| State | Statewide tax | Rate |
|---|---|---|
| Washington | $4,400 | 1.1% base |
| New York | $1,600 | 0.4% base |
| Pennsylvania | $4,000 | 1% base |
| Florida | $2,800 | 0.7% base |
| New Jersey | $3,215 | 0.4% base |
| Illinois | $400 | 0.1% base |
| Texas | $0 | 0% base |
| California | $0 | 0% base |
Graduated states (Washington, New Jersey, Connecticut and others) charge more on higher prices, and New York adds a buyer-paid 1% tax at $1,000,000 and above. States with no statewide transfer tax on file: Alaska, Arizona, California, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, Wyoming.
Who pays the transfer tax?
State law sets who is liable, but the purchase contract can shift it. Michigan, North Carolina and Wisconsin law put the tax on the seller, and Washington’s Department of Revenue says the seller usually pays; Vermont’s falls on the buyer; Maine and New Hampshire charge both sides, and Delaware’s is typically split. Where the source doesn’t say, the calculator assumes a 50/50 split — change it to match your contract.
Read your Loan Estimate alongside
Your lender must send a Loan Estimate within 3 business days of your application and a Closing Disclosure at least 3 business days before closing. Some fees can’t increase between the two; recording fees and services from the lender’s list can rise by no more than 10% in total; prepaid interest, insurance and escrow can change. Comparing the two pages line by line is the best way to catch errors — see Loan Estimate and Closing Disclosure.
Frequently asked questions
How much are closing costs?
Typically 2% to 5% of the purchase price according to the CFPB, on top of the down payment. State transfer and mortgage taxes, title insurance, prepaid interest and escrow deposits explain most of the difference between places.
Which states have no real estate transfer tax?
At state level: Alaska, Arizona, California, Idaho, Indiana, Kansas, Louisiana, Mississippi, Missouri, Montana, New Mexico, North Dakota, Oregon, Texas, Utah, Wyoming. Some still allow county or city taxes or small fees.
Does the buyer or the seller pay transfer tax?
It depends on state law and the contract. Some states name the seller, some the buyer and some split it; the calculator sets each state’s default and lets you change it.
What is an escrow cushion?
A reserve your servicer can collect at closing so the escrow account doesn’t run short. Regulation X caps it at one-sixth of a year’s escrow payments — 2 months.
Can closing costs change after the Loan Estimate?
Some can’t increase at all, recording fees and lender-listed services can rise by up to 10% in total, and prepaid items can change. Compare your Closing Disclosure with the Loan Estimate.
Can closing costs be rolled into the mortgage?
On a purchase, usually not directly, but a seller credit or a lender credit (in exchange for a higher rate) can cover part of them. On a refinance, costs are often added to the new loan.
Sources
- National Association of Realtors — State real estate transfer tax (Jul 5, 2023)
- Montana Constitution, Art. VIII §17 — State real estate transfer tax (Oct 28, 2026)
- Minnesota Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- Illinois Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- Massachusetts Department of Revenue — State real estate transfer tax (Dec 30, 2025)
- ORS 306.815 — State real estate transfer tax (Oct 28, 2026)
- Nevada Department of Taxation — State real estate transfer tax (Oct 28, 2026)
- SDCL 43-4-21 — State real estate transfer tax (Oct 28, 2026)
- Iowa Department of Revenue — State real estate transfer tax (Oct 5, 2026)
- California Revenue and Taxation Code §11911 — State real estate transfer tax (Oct 28, 2026)
- C.R.S. 39-13-102 — State real estate transfer tax (Oct 28, 2026)
- Maryland Tax-Property Article §13-203 — State real estate transfer tax (Jan 21, 2026)
- Arizona Constitution, Art. IX §24 — State real estate transfer tax (Oct 28, 2026)
- Arkansas Department of Finance and Administration — State real estate transfer tax (Oct 8, 2026)
- Tennessee Department of Revenue — State real estate transfer tax (May 6, 2024)
- South Carolina Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- 68 O.S. §1904 — State real estate transfer tax (Nov 1, 2025)
- Alabama Department of Revenue — State real estate transfer tax (Aug 14, 2023)
- Texas Constitution, Art. VIII §29 — State real estate transfer tax (Jan 1, 2016)
- Florida Department of Revenue — State real estate transfer tax (Dec 1, 2017)
- CFPB — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- Maine Revenue Services — State real estate transfer tax (Oct 28, 2026)
- Wis. Stat. 77.22 — State real estate transfer tax (May 17, 2024)
- Vermont Department of Taxes — State real estate transfer tax (Oct 28, 2026)
- New Hampshire Department of Revenue Administration — State real estate transfer tax (Oct 28, 2026)
- Washington Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- Michigan Department of Treasury — State real estate transfer tax (Oct 28, 2026)
- New York Department of Taxation and Finance — State real estate transfer tax (Jun 1, 2026)
- Ohio Revised Code 322.02 — State real estate transfer tax (Apr 9, 2025)
- Pennsylvania Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- New Jersey Division of Taxation — State real estate transfer tax (Oct 28, 2026)
- Connecticut Department of Revenue Services — State real estate transfer tax (Jul 9, 2020)
- Rhode Island Division of Taxation — State real estate transfer tax (Aug 21, 2025)
- Nebraska Department of Revenue — State real estate transfer tax (Jul 18, 2026)
- KRS 142.050 — State real estate transfer tax (Jul 15, 2014)
- W. Va. Code 11-22-2 — State real estate transfer tax (Oct 28, 2026)
- Code of Virginia, Title 58.1, Chapter 8 — State real estate transfer tax (Oct 28, 2026)
- Delaware Division of Revenue — State real estate transfer tax (Apr 16, 2024)
- N.C. Gen. Stat. 105-228.30 — State real estate transfer tax (Oct 28, 2026)
- DC Office of the Chief Financial Officer — District real estate transfer tax (Oct 28, 2026)
- Georgia Department of Revenue — State real estate transfer tax (Oct 28, 2026)
- Hawaii Department of Taxation, Form P-64A instructions — State real estate transfer tax (Rev. 2025)
- CFPB, Regulation X 1024.17 — Most an escrow account may hold as a cushion (one-sixth of annual escrow payments) (Oct 28, 2026)
- CFPB — Lender must send the Loan Estimate within this many business days of your application (Oct 28, 2026)
- CFPB — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- CFPB — Cumulative limit on increases for recording fees and lender-listed services (Sep 11, 2024)
- CFPB: Closing costs and the Loan Estimate
- Texas Department of Insurance: 2026 title insurance rates
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.