Texas Closing Cost Calculator (2026)

Texas has no state transfer tax — one of the biggest closing-cost advantages in the US. Estimate your total buyer closing costs including promulgated title insurance, survey, lender fees, and Texas property tax prepaids.

✍️ By AmericaCalculator Real Estate Team | Last verified: July 2026 | Sources: Texas Department of Insurance, TREC, Texas Comptroller
★ NO TRANSFER TAX Texas Closing Cost Key Facts — 2026
State Transfer Tax
$0
TX is one of few states with zero transfer tax
TDI Title Insurance (Owner, $350k)
~$1,832
Seller pays owner policy by custom; promulgated rate
Property Tax (avg statewide)
1.7%–2.5%
Among highest in US; prepay 2–3 months at closing
Survey Requirement
$400–$700
Required by most TX lenders unless recent survey exists
🧾 Texas Closing Cost Calculator
Purchase Details
Texas-Specific Fees
TDI promulgated rate; owner policy paid by seller
Required by most TX lenders
Typically $100–$250 in TX counties
Prepaid Items — Texas Property Tax
TX avg 1.7%–2.5% of value; no homestead cap until year 2
TX among highest HO insurance rates nationally

Texas Title Insurance Rates (TDI, 2026)

Texas title insurance rates are set by the state (Texas Department of Insurance). Every title company charges the same rate — you cannot negotiate the premium, only the service quality.

Purchase PriceOwner Policy (seller pays)Lender Policy (buyer pays)
$200,000~$1,322~$732
$300,000~$1,680~$950
$400,000~$2,032~$1,155
$500,000~$2,395~$1,360
$750,000~$3,270~$1,880

Simultaneous issue discount applies when both policies are purchased together. Source: TDI Basic Rate Chart.

Texas Property Tax by Major County

CountyEffective Tax RateAnnual Tax on $350k Home
Harris (Houston)2.13%$7,455
Dallas2.18%$7,630
Tarrant (Fort Worth)2.26%$7,910
Travis (Austin)1.97%$6,895
Bexar (San Antonio)2.09%$7,315
Collin (Plano/Frisco)1.72%$6,020
Denton1.88%$6,580
El Paso2.44%$8,540
⚠️ Homestead Exemption: Texas homeowners who occupy their primary residence can apply for a homestead exemption reducing the taxable value by $100,000 for school district taxes (HB 3 2023). Apply with your county appraisal district in the year after purchase.

Texas Closing Cost Rules — What Makes Texas Different

No State Transfer Tax — A Major Buyer Advantage

Texas does not impose a real estate transfer tax, deed tax, or documentary stamp tax at the state or county level. This saves buyers and sellers thousands of dollars compared to states like Florida ($0.70/$100 doc stamps), California ($1.10–$25/$1,000), or New York (up to $1.25/$500 + mansion tax). On a $500,000 Texas purchase, the transfer tax savings vs. Florida alone exceed $3,500.

Texas Title Insurance — Promulgated Rates

The Texas Department of Insurance (TDI) sets all title insurance rates under the Texas Title Insurance Act. Unlike most states where title companies compete on price, in Texas every company charges the same base rate. The rate structure uses a declining scale per $1,000 of value:

Value RangeRate per $1,000
$0 – $100,000$5.75 per $1,000 (min $100)
$100,001 – $1,000,000$5.00 per $1,000
$1,000,001 – $5,000,000$4.00 per $1,000
Over $5,000,000$3.50 per $1,000

A simultaneous issue discount applies when the lender and owner policies are issued together — the second policy (usually the lender's) is charged at a discounted rate of $100 plus 15% of the basic premium.

Survey Requirement

Texas lenders almost universally require a current survey of the property as a condition of issuing the lender's title policy. A survey confirms property boundaries, easements, encroachments, and improvements. If the seller has a survey dated within approximately 5–10 years with no changes to the property, the title company may accept it with a T-47 Residential Real Property Affidavit from the seller. Otherwise, a new survey is ordered at the buyer's expense — typically $400–$750 for a standard residential lot.

Texas Property Taxes — High Rates, No Income Tax Trade-Off

Texas has no state income tax, but compensates with high property tax rates — among the highest in the nation. The statewide average effective rate is approximately 1.7% – 2.5% of appraised value. Because Texas is a non-disclosure state (sale prices are not public), county appraisal districts (CADs) use mass appraisal models to set assessed values, which can differ from the actual purchase price in the first year.

💡 Protest your appraisal: Texas homeowners can protest their property appraisal annually with their county CAD. Filing a protest — especially in the first year after purchase — is common and often results in a reduced taxable value. The deadline is typically May 15 or 30 days after receiving your notice of appraised value.

Homeowners Insurance — Texas Rates Among Highest Nationally

Texas homeowners insurance is significantly more expensive than the national average due to hurricane/tropical storm risk on the Gulf Coast, hailstorm exposure across the state, and tornado risk in North Texas. Average annual premiums by market:

City / RegionAverage Annual HO PremiumKey Risk Factor
Houston / Harris County$2,200 – $4,000Hurricane, flood, hail
Dallas / Fort Worth$2,000 – $3,500Hail, tornado, severe storm
Austin / Travis County$1,600 – $2,800Hail, wildfire (western suburbs)
San Antonio / Bexar$1,500 – $2,500Hail, severe storm
Corpus Christi / Coastal$3,000 – $6,000+Hurricane, windstorm
⚠️ TWIA Windstorm Insurance: Properties in Texas coastal counties (the "1st tier") often cannot obtain wind coverage from standard carriers — they must purchase windstorm coverage through the Texas Windstorm Insurance Association (TWIA) separately from their HO policy. Budget $1,500–$5,000+ additional annually for TWIA coverage.

Worked Example: $350,000 Home, Dallas County, Conventional 20% Down

ItemAmountNotes
Down Payment (20%)$70,000
Loan Origination (0.75% of $280k)$2,100Lender fee
Appraisal$550
Title Insurance — Lender Policy$950TDI rate, simultaneous issue
Title Insurance — Owner Policy$0Seller pays by TX custom
Survey$550Required by lender
Escrow / Closing Fee$500
Recording Fee$150Dallas County
State Transfer Tax$0Texas has no transfer tax
Prepaid Property Tax (2 mo, 2.18%)$1,272Based on $7,630/yr Dallas
Prepaid HO Insurance (1 year)$2,200Dallas estimate
Estimated Total Cash to Close~$78,272

Frequently Asked Questions — Texas Closing Costs

Does Texas have a transfer tax on real estate?
No. Texas is one of a handful of US states with no real estate transfer tax, deed tax, or documentary stamp tax at any level. This saves buyers thousands compared to states like Florida ($3,500 on a $500k sale) or California.
What are typical closing costs in Texas?
Texas buyer closing costs typically range from 2% to 3.5% of the purchase price excluding down payment. The main items are lender origination fees, TDI-regulated title insurance (lender policy), survey ($400–$750), escrow fee, and recording fee.
Who pays title insurance in Texas?
By Texas custom, the seller pays for the owner title insurance policy and the buyer pays for the lender title insurance policy. Texas title rates are set by the TDI — all companies charge the same rate.
Why is Texas property tax so high?
Texas has no state income tax and relies heavily on property taxes to fund schools and local government. Effective rates of 1.7%–2.5% are among the highest in the US. The homestead exemption (currently $100,000 off school district value) helps primary residents reduce the bill starting in year two after purchase.
Is a survey required at closing in Texas?
Most Texas lenders require a current survey. If the seller has a recent survey (typically within 5–10 years) with no property changes, it may be accepted with a T-47 affidavit. Otherwise, the buyer pays $400–$750 for a new survey.
How do I lower my Texas property tax bill?
File a homestead exemption with your county appraisal district (CAD) in the year after purchase — this exempts $100,000 of school district value. File a value protest with your CAD before May 15 each year. Consider hiring a property tax consultant, who typically works on contingency.
What is TWIA and do I need it?
TWIA (Texas Windstorm Insurance Association) provides windstorm and hail coverage for properties in Texas coastal counties that cannot obtain it from standard carriers. If buying in Galveston, Brazoria, Cameron, Nueces, or other 1st-tier coastal counties, budget $1,500–$5,000+ annually for TWIA in addition to your standard HO policy.
Can the seller pay my closing costs in Texas?
Yes. Seller concessions are common in Texas. The seller can contribute toward buyer closing costs up to the limit set by your loan type: 3%–9% for conventional (depends on down payment), 6% for FHA, 4% for VA. This is negotiated in the Texas One to Four Family Residential Contract.