Closing costs in Texas are mostly title insurance, escrow and recording charges, lender fees and prorated property taxes. Texas has no real estate transfer tax: the Texas Constitution has barred new ones since January 1, 2016. Title insurance premiums are set by the Texas Department of Insurance, and since March 1, 2026, the basic premium on a $300,000 policy is $1,768.

That makes Texas different from states like Florida, where a deed tax is often the largest single cost. In Texas, the big numbers tend to be the owner’s title policy, the real estate commission and the loan costs. Who pays each item is decided in your purchase contract.

Below we break down buyer and seller costs separately, with the official rule behind each line. To run your own numbers, try our Texas closing cost calculator.

  • No transfer tax: Article VIII, Section 29 of the Texas Constitution, approved by voters in November 2015, bars new laws that tax the transfer of real property.
  • Title insurance: the commissioner of insurance sets the basic premium rates all title companies must use; rates fell 6.2% on March 1, 2026.
  • Property taxes are local: Texas has no state property tax; bills usually go out around October 1 and are due by January 31.
  • HOA resale certificate: capped at $375, with updates capped at $75.

Government taxes and fees in a Texas closing

Because there is no deed or transfer tax, the government charges in a Texas closing are mainly county recording fees and property taxes.

No state real estate transfer tax

In November 2015, Texas voters approved a constitutional amendment (S.J.R. 1, adopted with 86.4% of the vote, according to the Texas Legislative Council) that added Section 29 to Article VIII. It says that after January 1, 2016, no law may impose a transfer tax on a transaction that conveys fee simple title to real property. Its listed exceptions are general business taxes, taxes on mineral production, taxes on issuing title insurance, and rate changes to taxes that already existed on January 1, 2016. For a typical home sale, there is no deed tax line on your settlement statement.

County recording fees

County clerks charge to record the deed, the deed of trust (the Texas mortgage document) and releases. Local Government Code section 118.011 sets a base fee of $5 for the first page and $4 for each additional page, and counties may add a records management fee and a records archive fee of up to $10 each. The Harris County Clerk, for example, lists $25 for the first page and $4 for each additional page. Check your county clerk’s fee schedule for exact amounts.

Buyer closing costs in Texas

For most buyers, the largest closing costs come from the mortgage. The Consumer Financial Protection Bureau (CFPB) lists typical items such as appraisal fees, title insurance, government fees, and prepaid property taxes, homeowners insurance and interest.

Buyer cost How it is set Example or rule
Lender’s (loan) title policy TDI basic premium rates Based on the loan amount; ask for the simultaneous-issue charge
Recording the deed of trust County clerk, LGC ch. 118 $25 first page, $4 each extra page (Harris County)
Lender fees (origination, appraisal, credit report) Set by your lender Listed on your Loan Estimate
Escrow or settlement fee (buyer share) Set by the title company Ask for a written quote
Prepaid items and escrow deposit Loan terms and closing date Insurance, property taxes, interest
Survey and home inspection Private providers; contract terms Varies

Lender fees: Loan Estimate and Closing Disclosure

Your lender must send a Loan Estimate within three business days of receiving your application, and a Closing Disclosure at least three business days before closing. Use them to compare lenders and to check that the final numbers match what you were quoted. They are the most accurate guide to your closing costs in Texas as a buyer.

Property tax proration

The Texas Comptroller is clear: Texas has no state property tax. School districts, cities, counties and special districts levy their own taxes, and the county tax assessor-collector usually collects them. Bills typically go out around October 1, you generally have until January 31 of the following year to pay, and penalties and interest begin on February 1. Because most of the year passes before the bill arrives, the purchase contract usually prorates the year’s taxes by date, with the seller crediting the buyer for the part of the year the seller owned the home. If the home will be your main residence, apply for the Texas homestead exemption.

Seller closing costs in Texas

Sellers usually pay the listing side of the commission, any mortgage payoff, their share of prorated taxes and, if the contract says so, the owner’s title policy. Commissions are fully negotiable and not set by law, as the National Association of Realtors (NAR) states.

Seller cost How it is set Example or rule
Owner’s title policy (if the contract assigns it) TDI basic premium rates, effective March 1, 2026 $1,768 on $300,000; $2,262 on $400,000
Real estate commission Negotiated in the listing agreement Not set by law
HOA resale certificate Property Code s. 207.003 Up to $375; update up to $75
Escrow or settlement fee (seller share) Set by the title company Ask for a written quote
Mortgage payoff and release recording Your lender and county clerk Per payoff statement
Prorated property taxes Purchase contract Credit to buyer for days owned
Transfer tax Texas Constitution, Art. VIII, s. 29 None

How Texas title insurance premiums work

Texas law requires the commissioner of insurance to set the premium rates that all title insurance companies and agents must charge. Commissioner’s Order No. 2025-9697, signed December 19, 2025, cut basic premium rates by 6.2% effective March 1, 2026. Under the new table, the basic premium is $308 for a policy up to $25,000 and $780 at $100,000. Between $100,001 and $1,000,000, you subtract $100,000 from the policy amount, multiply by 0.00494 and add $780. So a $300,000 owner’s policy costs $1,768, and a $400,000 policy costs $2,262.

Because the basic premium is the same at every company, you compare title companies on service and on charges outside the premium, such as escrow fees. Ask for those in writing early.

HOA resale certificates

If the home is in a subdivision with a property owners’ association, Property Code section 207.003 requires the association to deliver a resale certificate, the restrictions, and the bylaws and rules within 10 business days after a valid written request. The association may charge a reasonable and necessary fee of up to $375 for the certificate and up to $75 for an update, and it may not charge a fee if it misses the deadline. If you are buying a condominium, ask your title company which rules apply.

How to lower your closing costs in Texas

  • Get Loan Estimates from more than one lender and compare origination charges and rates.
  • Negotiate in the contract who pays the owner’s title policy, the survey and the HOA fees.
  • Ask title companies for written quotes on escrow and other non-premium charges.
  • Confirm wiring instructions by phone using a number you already trust. The CFPB warns that closing scams often look like normal emails from real estate professionals.
  • Make sure your agent is licensed: verify a real estate license and browse brokerages in Harris County, Dallas County or Travis County.

Thinking of selling? Estimate your home’s value for free before you talk numbers. It is an estimate, not an appraisal.

Frequently asked questions

Does Texas have a real estate transfer tax?

No. Texas has no real estate transfer tax, and Article VIII, Section 29 of the Texas Constitution, approved by voters in 2015, bars any new law imposing one after January 1, 2016.

How much is title insurance in Texas?

The Texas Department of Insurance sets the basic premium. Since March 1, 2026, it is $780 for a $100,000 policy, $1,768 for $300,000 and $2,262 for $400,000.

What closing costs does the buyer pay in Texas?

Financed buyers usually pay lender fees, the lender’s title policy, recording fees for the deed of trust, their share of escrow fees and prepaid items such as insurance, taxes and interest. Your Loan Estimate lists your specific costs.

What are seller closing costs in Texas?

Sellers commonly pay the real estate commission, any mortgage payoff, prorated property taxes, HOA resale certificate fees and, when the contract assigns it, the owner’s title policy. There is no transfer tax.

How much can a Texas HOA charge for a resale certificate?

Under Property Code section 207.003, up to $375 for the resale certificate and up to $75 for an update. The association may not charge the fee if it fails to deliver within the legal deadline.

When are Texas property taxes due?

Bills usually go out around October 1, and taxpayers generally have until January 31 of the following year to pay. Penalties and interest start on February 1.

Sources

This article is for general information only and is not legal, tax or financial advice. Amounts and rules change: confirm them with the official sources linked above or with a licensed professional before making decisions.