Closing costs

Average Closing Costs by State

Editorial Team · Updated July 1, 2026

The average home buyer in the United States pays about $4,661 in closing costs including recording fees and transfer taxes — roughly 1.6% of the typical sale price. Strip out taxes and the average falls to around $3,042.

Where you buy matters more than almost any other factor, because real-estate transfer taxes vary enormously. Closing costs run from about $1,551 in South Dakota to $17,545 in Washington, D.C. — an eleven-fold spread on the same purchase.

What are average closing costs?

Closing costs are the fees paid at the end of a home purchase, on top of the down payment — lender origination, title insurance, appraisal, escrow and recording fees, plus prepaid property taxes and insurance. Nationally they average about $4,661 with recording and taxes included (roughly 1.6% of the price) or $3,042 without, according to LodeStar Software Solutions' 2025 closing-cost report. A common rule of thumb is 2% to 5% of the purchase price.

Average closing costs by state

Figures below include recording and transfer taxes, so they capture the full state-to-state spread. States are ordered highest to lowest.

Average purchase closing costs by state, with recording and taxes (2025)

State	Average closing cost
Washington, D.C.	$17,545
New York	$13,738
Delaware	$12,157
Maryland	$9,218
Vermont	$8,597
Florida	$8,492
Pennsylvania	$8,259
New Hampshire	$7,034
Virginia	$6,817
Washington	$5,995
California	$5,962
Hawaii	$5,921
New Jersey	$5,410
Massachusetts	$5,112
Georgia	$5,106
Tennessee	$5,063
Illinois	$4,702
Connecticut	$4,249
Nevada	$4,157
Michigan	$4,138
Utah	$3,997
Rhode Island	$3,810
Texas	$3,713
Alaska	$3,683
Arizona	$3,574
Louisiana	$3,513
Idaho	$3,497
Minnesota	$3,492
Colorado	$3,479
Maine	$3,437
Ohio	$3,394
West Virginia	$3,272
Oregon	$3,207
Montana	$3,157
Wyoming	$3,070
New Mexico	$3,011
Oklahoma	$2,896
South Carolina	$2,883
Alabama	$2,791
Wisconsin	$2,741
North Carolina	$2,480
Kentucky	$2,475
Arkansas	$2,440
Kansas	$2,369
Nebraska	$2,344
Mississippi	$2,332
North Dakota	$2,243
Indiana	$1,810
Missouri	$1,740
Iowa	$1,640
South Dakota	$1,551

Why closing costs vary so much

The single biggest driver is the real-estate transfer tax — the fee a state, and sometimes a city, charges to record the sale. New York, Delaware and Maryland layer on steep transfer and recording taxes, which is why their totals reach five figures; states with no transfer tax, like Missouri and much of the Midwest, sit near the bottom. Title-insurance pricing and attorney-closing requirements add smaller regional differences.

Who pays closing costs?

Buyers and sellers both pay, but different items. Buyers cover loan origination, appraisal, title and prepaids — the 2%–5% figure above. Sellers typically pay the real-estate commission and, in many states, the bulk of the transfer tax. In a buyer-friendly market you can also ask the seller for a concession toward your closing costs.

How to reduce closing costs

Shop your loan estimate — origination and title fees are negotiable and vary by lender. Compare title companies, ask the seller for a credit, and check whether your state or a first-time-buyer program offers assistance. A no-closing-cost loan trades the upfront bill for a slightly higher rate, which can pay off if you will not keep the loan long.

Sources

Put the numbers to work

Home Closing Cost Calculator

Estimate the closing costs a buyer pays: origination, title, escrow, appraisal and prepaids.

Seller Closing Cost Calculator

Estimate what a seller nets after agent commission, transfer taxes and other closing costs.

Mortgage Calculator

Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.

Related reference

Frequently asked

How much are closing costs on average?

The U.S. average is about $4,661 including recording and transfer taxes — roughly 1.6% of the sale price — or about $3,042 without taxes. A common rule of thumb is 2% to 5% of the purchase price.

Which state has the highest closing costs?

Washington, D.C. has the highest average closing costs at about $17,545, followed by New York ($13,738) and Delaware ($12,157) — driven mainly by transfer and recording taxes.

Which state has the lowest closing costs?

South Dakota has the lowest average at about $1,551, followed by Iowa ($1,640) and Missouri ($1,740). States with no real-estate transfer tax tend to sit at the bottom.

Why are closing costs higher in some states?

Real-estate transfer taxes are the main reason. States that charge steep transfer or recording taxes push totals into five figures, while states without a transfer tax stay far lower.

All reference data