Same $350K Home — New York Pays $17,500 in Closing Costs. Indiana Pays $3,500.
Closing costs vary by up to 5x depending on your state — driven by state transfer taxes, mortgage recording taxes, and attorney requirements. Shop your lender costs too (also varies by up to $5,000 for the same loan). Compare now to know your real number.
Mortgage Closing Costs by State 2026: Full Calculator + Every Fee Explained
Closing costs are the most misunderstood expense in home buying. They vary wildly by state — from 0.5% in Indiana and Missouri to 5% in New York — mostly because of state and local transfer taxes. This is the complete 2026 guide with every state, every fee type, what's negotiable, and how to save $3,000–$8,000.
2–3%
National Average
0.5–1%
Lowest (IN, MO, WI)
3–5%
Highest (NY, DC)
$3K–$8K
Potential Savings
⚡ QUICK ANSWER:
National average closing costs in 2026: 2–3% of purchase price. On a $350K home = $7,000–$10,500. But it varies dramatically: New York: $10,500–$17,500 (3-5%). Indiana/Missouri: $1,750–$3,500 (0.5-1%). The big driver is your state's transfer tax and mortgage recording tax. Lender fees are the part you can negotiate and shop around.
Why Do Closing Costs Vary So Much by State?
🏛️ Transfer Taxes
State and local governments charge a tax when property changes hands. This is the #1 driver of state variation. New York charges 0.5-1.3% on the mortgage amount PLUS a recordation tax. Indiana has no state transfer tax. This alone accounts for $5,000-$10,000 in difference on a $400K purchase.
High: NY, DE, PA, MD, DC, CT
⚖️ Attorney Requirements
Some states legally require a real estate attorney at closing (NY, MA, CT, SC, GA, ME, WV, KY, DE). Attorney fees add $500-$1,500 to closing costs. In states like New York, attorneys are standard and necessary for title examination as well.
Required: NY, MA, CT, NJ, DE, SC
📋 Title Insurance Rates
Title insurance rates are set by state in some states (like Texas and Florida) and completely unregulated in others. In unregulated states, you can shop for competing quotes and save 10-25% on title insurance. In regulated states, all insurers charge the same rate.
Regulated: TX, FL, NM, IA, KS
Closing Costs by State 2026: Full Table (32 States + DC)
Costs below represent total closing costs including lender fees, title, transfer taxes, and prepaid items. Assumes conventional loan, average-sized home for state, standard lender fees. The green rows are the cheapest states to close in.
| State | Cost % of Price | On $300K Home | On $400K Home | Cost Level | Key Driver |
|---|---|---|---|---|---|
| Alabama | 1.0–1.8% | $3,000–$5,400 | $4,000–$7,200 | Low | No state transfer tax |
| Alaska | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low | No state transfer tax, high recording fees |
| Arizona | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low | Low transfer tax (0.1%) |
| California | 1.5–3.0% | $4,500–$9,000 | $6,000–$12,000 | Medium-High | County transfer tax + city tax (some) + ALTA title |
| Colorado | 1.0–2.5% | $3,000–$7,500 | $4,000–$10,000 | Medium | Low transfer tax, competitive title market |
| Connecticut | 2.0–3.5% | $6,000–$10,500 | $8,000–$14,000 | High | Transfer tax 0.75-1.75%, attorney required |
| Delaware | 2.5–4.0% | $7,500–$12,000 | $10,000–$16,000 | Very High | Realty transfer tax 4% (split buyer/seller 2% each) |
| Florida | 1.5–2.5% | $4,500–$7,500 | $6,000–$10,000 | Medium | Doc stamps on mortgage + WDO inspection required |
| Georgia | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low-Medium | Intangibles tax on mortgage 0.1% |
| Hawaii | 1.5–2.5% | $4,500–$7,500 | $6,000–$10,000 | Medium | Conveyance tax 0.1-1.25%, attorney recommended |
| Illinois | 1.5–2.5% | $4,500–$7,500 | $6,000–$10,000 | Medium | Transfer tax 0.5%, attorney strongly recommended |
| Indiana | 0.5–1.0% | $1,500–$3,000 | $2,000–$4,000 | Lowest | No state transfer tax, lowest fees nationally |
| Kentucky | 0.75–1.5% | $2,250–$4,500 | $3,000–$6,000 | Low | Low transfer tax 0.1%, competitive market |
| Maryland | 2.0–3.5% | $6,000–$10,500 | $8,000–$14,000 | High | Transfer + recordation taxes 1.5-2.5%, attorney required |
| Massachusetts | 1.5–2.5% | $4,500–$7,500 | $6,000–$10,000 | Medium | Transfer tax $4.56/$1,000, attorney required |
| Michigan | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low-Medium | Transfer tax 0.75%, title insurance competitive |
| Minnesota | 0.75–1.5% | $2,250–$4,500 | $3,000–$6,000 | Low | Deed tax 0.33%, no mortgage tax |
| Missouri | 0.5–1.2% | $1,500–$3,600 | $2,000–$4,800 | Lowest | NO state transfer tax — among cheapest nationally |
| Nevada | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low-Medium | Transfer tax 0.51%, no state income tax |
| New Jersey | 2.0–3.5% | $6,000–$10,500 | $8,000–$14,000 | High | Realty transfer fee 1%, mansion tax over $1M |
| New York | 3.0–5.0% | $9,000–$15,000 | $12,000–$20,000 | Highest | Mortgage recording tax 0.5-1.3% + attorney required |
| North Carolina | 0.75–1.5% | $2,250–$4,500 | $3,000–$6,000 | Low | Excise tax $1/$500 of value (0.2%), very competitive |
| Ohio | 0.75–1.5% | $2,250–$4,500 | $3,000–$6,000 | Low | Conveyance fee 0.1%, competitive title market |
| Oregon | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low-Medium | No state transfer tax, recording fees apply |
| Pennsylvania | 2.0–4.0% | $6,000–$12,000 | $8,000–$16,000 | High | Transfer tax 2-4% (split buyer/seller), attorney recommended |
| Tennessee | 0.75–1.5% | $2,250–$4,500 | $3,000–$6,000 | Low | Deed tax 0.37%, no mortgage recording tax |
| Texas | 1.0–2.0% | $3,000–$6,000 | $4,000–$8,000 | Low-Medium | No state transfer tax, but title insurance rates set by state |
| Virginia | 1.5–2.5% | $4,500–$7,500 | $6,000–$10,000 | Medium | Recordation tax 0.25%, grantor tax 0.5% |
| Washington | 1.5–3.0% | $4,500–$9,000 | $6,000–$12,000 | Medium-High | REET 1.1-3.0% on graduated scale (buyers in luxury tier pay more) |
| Washington DC | 3.0–4.5% | $9,000–$13,500 | $12,000–$18,000 | Very High | Recordation + transfer taxes 2.2-4%, attorney required |
| Wisconsin | 0.5–1.2% | $1,500–$3,600 | $2,000–$4,800 | Lowest | Transfer fee 0.3%, very competitive title market |
*Estimates based on CFPB data, ClosingCorp state surveys, and lender data June 2026. Includes lender fees, title, transfer taxes, and typical prepaid items. Does not include down payment. Actual costs vary by lender, property, and transaction specifics.
Which Closing Costs Are Negotiable vs. Fixed?
✅ NEGOTIABLE — You Can Save $2K–$5K Here
❌ FIXED — Cannot Be Reduced
The Biggest Savings: Compare Lenders Before Closing
Lender fees (origination + underwriting + processing) vary by $2,000-$5,000 for the SAME loan. The CFPB found that 47% of borrowers don't comparison shop — leaving thousands on the table. Get Loan Estimates from 3+ lenders on the same day to compare Section A fees (lender costs) directly.
6 Ways to Reduce Closing Costs — Save $3,000–$8,000
Shop 3–5 Lenders on the Same Day
$1,000–$4,000Get Loan Estimates on the same day for accurate comparison. Section A (Lender Charges) is fully negotiable. Use the lowest offer to negotiate with your preferred lender.
Ask for Seller Concessions
$5,000–$21,000Ask the seller to contribute 2-6% (depending on loan type) toward your closing costs. On a $350K purchase with FHA, that's up to $21,000. See our Seller Concessions Calculator for exact scripts.
Request Lender Credits
$2,000–$5,000Accept a 0.25% higher rate in exchange for the lender covering your closing costs. Makes sense if you plan to sell or refinance within 5-7 years.
Close at Month-End
$300–$700Prepaid interest = daily rate × days to end of month. Closing June 28 = 3 days interest on $400K at 7% = ~$233. Closing June 1 = ~$2,333. The savings are real.
Buy in a Low-Tax State (or Low-Tax County)
$2,000–$10,000If you're relocating, compare closing costs across state lines. Moving from New Jersey to neighboring Pennsylvania can save $4,000-$8,000 in transfer taxes alone on a $400K purchase.
Use Down Payment Assistance That Covers Closing Costs
$5,000–$15,000Many DPA programs (NACA, state HFA programs, employer programs) cover closing costs on top of the down payment. First-time buyers especially — most never check these programs.
FAQ: Closing Costs 2026
Q1.What state has the lowest mortgage closing costs?
Indiana, Missouri, and South Dakota consistently have the lowest closing costs in the nation — typically 0.5-1% of the purchase price. On a $350,000 home, you might pay $1,750-$3,500 in closing costs. These states have low transfer taxes, no attorney requirements, and competitive title insurance markets. Other low-cost states include Wisconsin, Iowa, Kentucky, and Ohio, all under 1.5%. Missouri specifically has no transfer tax, which saves $1,750+ on a $350K purchase.
Q2.What state has the highest mortgage closing costs?
New York has the highest closing costs in the nation at 3-5% of purchase price, primarily due to: (1) Mortgage recording tax (0.5-1.3% of loan amount), (2) New York City mansion tax (1% on purchases $1M+), (3) Title insurance rates, (4) Attorney fees (required in NY). On a $500,000 New York purchase, closing costs can reach $15,000-$25,000. Pennsylvania (transfer tax 2-4%), Delaware (recordation tax 3%), Maryland (transfer + recordation taxes 1.5-2.5%), and Washington DC are also high-cost closing states.
Q3.Which closing costs are negotiable?
Negotiable closing costs (can be reduced or waived): Loan origination fee (try to get below 0.5%), Lender underwriting fee, Rate lock fee, Application fee, Processing fee, Courier/wire fees, Title insurance premium (shop competing title companies for 10-20% savings). NOT negotiable (fixed government fees): Recording fees (set by county), Transfer taxes (set by state/city), Property tax prepayments, FHA/VA/USDA upfront guarantee fees, Appraisal fee (set by appraiser). Negotiable strategy: get quotes from 3+ lenders on the same day and use them against each other.
Q4.Can closing costs be rolled into a mortgage?
You cannot directly roll closing costs into a conventional mortgage — the loan amount is based on the home's purchase price, not purchase price plus closing costs. However, you can effectively finance closing costs through: (1) Lender credits — accept a 0.25-0.5% higher rate in exchange for the lender covering your closing costs. (2) Seller concessions — ask the seller to contribute 2-6% (depending on loan type) toward your closing costs. (3) FHA/VA/USDA: upfront mortgage insurance premiums can be rolled into the loan amount. (4) Some DPA programs: cover closing costs on top of down payment.
Q5.Are closing costs paid twice when refinancing?
When refinancing, you pay closing costs again — typically 2-5% of the new loan amount. On a $400K refinance, that's $8,000-$20,000. This is why refinancing only makes sense if the monthly savings exceed closing costs before you plan to sell or refinance again (the "break-even" calculation). Break-even formula: Closing costs ÷ Monthly savings = Months to break even. Example: $8,000 closing costs ÷ $200/month savings = 40 months (3.3 years). If you plan to stay 4+ years, refinancing is worth it. No-closing-cost refinances exist but come with higher rates.
Related Guides
Cash to Close 2026: What It Is + How to Reduce
Closing costs are one part of cash to close — understand the full picture.
Seller Concessions Calculator 2026
The #1 way to reduce your closing costs — ask the seller to cover them.
Negotiate Closing Costs With Your Bank (Script)
Word-for-word scripts to negotiate lender fees — save $3,000–$8,000 more.
Down Payment Assistance Programs 2026
DPA programs that cover closing costs — not just down payments.
Compare Lender Fees — Where You Save the Most
You can't change your state's transfer tax — but you can shop lender fees, which vary by $2,000-$5,000 for the exact same loan. Get Loan Estimates from multiple lenders on the same day and compare Section A fees directly. Free, 3 minutes, no SSN required for initial estimate.
✓ Compare Section A lender fees · ✓ Same-day Loan Estimate · ✓ 300+ lenders