State guide · Texas
Seller closing costs in Texas
Texas has no state transfer tax. For sellers, that's worth thousands compared to most other states — the math is almost entirely commission, title insurance, and prorations.
Pre-loaded with Texas transfer-tax math. No signup required.
Texas at a glance
- State transfer tax
- No state transfer tax
- Transfer tax paid by
- Not applicable
- Owner's title insurance
- Seller pays
- Closing handled by
- Title company / settlement agent
Sellers in this state don't pay a state-level transfer or excise tax on the deed.
Texas is a strong seller-pays state for owner's title insurance. Title rates are promulgated by the Texas Department of Insurance, so the quoted premium doesn't vary by title company — only the endorsements and escrow fees do.
Texas closings are handled by title companies, which double as escrow agents. Attorneys are not required and most residential closings don't use one.
Typical seller closing cost band
6% – 8%
Roughly 6–8% of sale price including commission. Texas's standout feature for sellers: no state transfer tax. Closing costs are dominated by commission, owner's title insurance, and prorations.
The Texas-specific line items
These are the costs that differ from the generic seller-closing-cost list — the ones a national calculator usually gets wrong for Texas.
No state or local transfer tax
Texas does not impose a deed transfer tax, documentary stamp tax, or real estate excise tax at the state, county, or city level. This is the line every Florida or New York seller would trade places for — and it shifts the math toward commission and title fees as the dominant deductions.
Owner's title insurance (seller-paid)
The seller customarily pays the owner's policy premium for the buyer. Texas title rates are set by statute (the TDI promulgated rate schedule), so the premium is identical across title companies. What varies: the title company's escrow and admin fees, plus optional endorsements.
Property tax proration (paid in arrears — and high)
Texas runs property taxes on a calendar year, paid in arrears. The seller credits the buyer for the days the seller owned the property in the current year. With Texas's high effective tax rates (1.5–2.5% in many counties), this proration is a larger line than in most states.
HOA transfer + resale package fees
If the property is in an HOA, the seller usually pays for the resale certificate / transfer package. Texas Property Code regulates timing and content but not price — typical cost is $200–$500.
MUD / PID disclosures (no fee, but procedural)
Many Texas subdivisions sit inside a Municipal Utility District (MUD) or Public Improvement District (PID). Texas statute requires specific disclosure forms at close. No seller-paid fee, but failing to disclose can unwind the sale post-close — title companies catch this, but listing agents should confirm early.
A worked example
$400,000 sale price, typical Texas norms. Your numbers will vary — run the NETSheet for an actual estimate with your sale price, payoff, and close date.
- Sale price
- $400,000
- Mortgage payoff
- −$180,000
- Commission (5.5% total)
- −$22,000
- No state transfer tax
- $0
- Title + settlement fees
- −$2,200
- Prorations + other seller costs
- −$1,500
- Estimated net proceeds
- $194,300
Numbers are illustrative — they don't replace a real NETSheet run with your contract terms.
Run your own Texas numbers
Pre-loaded with Texas transfer-tax rates and customary practice. Punch in your sale price, payoff, and close date — the tool fills the rest.
Frequently asked — Texas
How much are seller closing costs in Texas?
Texas sellers typically pay 6–8% of the sale price at close. Most of that is real estate commission (usually 5–6%). The remainder is owner's title insurance (paid by the seller in Texas), title company escrow fees, property tax proration, and any HOA transfer fees. Texas has no state transfer tax, which keeps total seller costs lower than most other states.
Does Texas have a transfer tax on real estate?
No. Texas does not impose a deed transfer tax, documentary stamp tax, or real estate excise tax at the state, county, or city level. This is one of the few categorical advantages Texas sellers have over sellers in Florida, New York, California, or most other states.
Who pays for title insurance in Texas?
The seller customarily pays for the owner's title insurance policy that protects the buyer. Texas title insurance rates are set by the Texas Department of Insurance (TDI) and are the same across every title company in the state. Only the optional endorsements and escrow fees vary.
How are property taxes prorated when selling a home in Texas?
Texas property taxes run January 1 through December 31 and are paid in arrears (the bill for 2024 comes due in January 2025). At close, the seller credits the buyer for the days the seller owned the property in the current calendar year. Texas's high effective tax rates make this proration line item larger than in most states.
Do I need an attorney to sell a home in Texas?
No. Texas closings are handled by title companies that act as both title insurer and escrow agent. Attorneys are not required and most residential closings don't involve one. Sellers with complex estates, out-of-state probate, or contested titles often retain counsel separately.
What's the MUD or PID disclosure I keep seeing?
Many Texas subdivisions sit inside a Municipal Utility District (MUD) or Public Improvement District (PID), which levies an additional property tax on top of standard county taxes. State statute requires sellers to deliver specific disclosure forms at close. There's no seller-paid fee, but missing the disclosure can give the buyer grounds to rescind — title companies catch this, but listing agents should confirm MUD/PID status early.
Are Texas seller closing costs different in Houston vs. Austin vs. Dallas?
The state-level math is the same — no transfer tax, seller-paid title, statutorily set title rates. What varies city-to-city is the property tax rate (higher in Houston/Austin urban cores, lower in some suburbs), HOA prevalence, and the local-norm commission rates. Net proceeds on the same sale price will be within 1–2% across the major Texas metros.
Related guides
- How to calculate seller net proceeds — the general guide that the state-specific math sits on top of.
- Seller closing costs — all 50 states + DC — quick-reference table of transfer-tax rates by state.
- Contract-to-close transaction checklist — every task between accepted offer and closing day.