How to Calculate Buyer Closing Costs by State (With Real Numbers)

What Closing Costs Actually Include

Closing costs are not one fee. They are a collection of charges from multiple parties, each with its own calculation method and room for negotiation.

The categories break down as follows.

Lender fees cover loan origination, underwriting, and processing. These run $1,500 to $3,500 on a conventional purchase loan and are the most negotiable line items on your Loan Estimate.

Third-party fees include title search, title insurance, appraisal, home inspection, and attorney fees where required. These vary by provider. Shopping title insurance alone can save $400 to $1,200.

Prepaid items are not fees in the traditional sense. They include your first year of homeowner's insurance, prepaid mortgage interest from closing date to month-end, and initial escrow deposits for property taxes and insurance. On a $450,000 purchase closing mid-month, prepaid interest alone can add $600 to $900.

Government charges include transfer taxes and recording fees. These are set by the state and county. They are not negotiable, and they vary more than any other category.

Why State Matters More Than People Realize

Transfer tax is the single biggest source of closing cost variation between states. Some states charge nothing. Others charge a percentage of the sale price that compounds quickly on high-value properties.

Here is the range across key states as of 2025:

• Delaware: 4.0% of purchase price split between buyer and seller, with buyer typically paying 2.0%
• New York: State transfer tax of 0.4%, plus a mansion tax of 1.0% on purchases over $1 million, plus New York City adds another 1.425% to 2.625% on purchases over $500,000
• Pennsylvania: State transfer tax at 1.0%, plus local transfer tax that ranges from 0% to 2.0% depending on municipality
• Florida: Documentary stamp tax at 0.35% of the purchase price, typically paid by the seller, but buyer pays on the mortgage note at 0.35% per $100
• Texas: No state income tax and no state transfer tax. Recording fees average $250 to $400 total
• Missouri: No transfer tax. Total buyer closing costs routinely settle between 1.5% and 1.8% of purchase price
• California: County transfer tax averages $1.10 per $1,000 of value, but several cities, including San Francisco and Los Angeles, add city-level transfer taxes that can reach 0.45% to 5.5%

The conclusion: two buyers purchasing $600,000 homes, one in Austin and one in Philadelphia, face closing cost differences exceeding $12,000 before a single lender fee is compared.

Worked Example 1: $525,000 Purchase in New Jersey

New Jersey imposes a realty transfer fee on the seller, but buyers in New Jersey pay a mansion tax of 1.0% on purchases over $1 million. Below that threshold, the transfer fee burden falls primarily on the seller.

For a $525,000 purchase with a conventional 20% down loan ($420,000 loan amount):

| Line Item | Estimated Cost | |---|---| | Loan origination (1%) | $4,200 | | Appraisal | $550 | | Title search | $450 | | Lender's title insurance | $975 | | Owner's title insurance | $1,200 | | Attorney fee (required in NJ) | $1,100 | | Recording fees | $285 | | Prepaid interest (15 days) | $820 | | Homeowner's insurance (first year) | $1,440 | | Initial escrow deposit (2 months taxes + insurance) | $2,480 | | Total | $13,500 |

That works out to 2.57% of the purchase price. The buyer in this example who budgeted 2% left $2,985 unaccounted for.

Attorney fees in New Jersey are not optional. The state does not require attorneys at closing, but standard practice makes skipping representation a liability, not a savings.

Worked Example 2: $875,000 Purchase in New York City

New York City layers multiple transfer and recording taxes onto buyers. The math compounds fast.

For a $875,000 purchase with a 25% down payment ($656,250 loan amount):

| Line Item | Estimated Cost | |---|---| | Loan origination (0.75%) | $4,922 | | NY State mortgage recording tax (2.05% on loans under $500K, 2.175% over) | $14,273 | | Mansion tax (1.0% of purchase price) | $8,750 | | Title insurance (owner + lender) | $4,100 | | Attorney fee | $2,500 | | Bank attorney fee | $950 | | UCC filing | $175 | | Appraisal | $725 | | Prepaid interest (10 days) | $1,040 | | Homeowner's insurance (first year) | $1,800 | | Initial escrow deposit | $3,600 | | Total | $42,835 |

That is 4.9% of the purchase price. The mortgage recording tax alone exceeds what most buyers in low-tax states pay in total closing costs. A buyer relocating from Dallas to Manhattan who budgeted based on prior experience would be short by over $30,000.

The Three Fees Buyers Consistently Underestimate

Title Insurance

Most buyers accept the title company their real estate agent or lender recommends. In states where title insurance is not regulated on price, this costs real money. In Florida, Texas, and New York, rates are set by the state, so shopping does not help. In states like Ohio, Pennsylvania, and Virginia, rates vary by provider. Getting three competing quotes takes one hour and saves, on average, $600 to $1,100.

Prepaid Escrow Deposits

Lenders require two months of property taxes and homeowner's insurance to be deposited into escrow at closing. On a $700,000 home in a New Jersey suburb with a 2.4% effective property tax rate, that escrow deposit alone runs $2,800. This is a cash-flow event, not a fee, but it comes out of pocket on closing day.

Transfer Taxes in Rate-Stacked Jurisdictions

In California, buyers must account for both the county documentary transfer tax and any applicable city tax. In Los Angeles, the city's Measure ULA imposes an additional 4.0% tax on sales over $5 million and 5.5% on sales over $10 million, effective since April 2023. For a $5.2 million purchase, that adds $208,000 in transfer tax on the city layer alone.

How to Calculate Your Actual Closing Costs

Use this four-step process before you make any offer.

Step 1. Look up your state's transfer tax rate and your county's recording fee schedule. Most county assessor websites publish this. The rate you find is the floor. It does not move.

Step 2. Get a formal Loan Estimate from at least three lenders within a 48-hour window. Under RESPA, lenders must issue this within three business days of application. Comparing Section A (origination charges) across lenders identifies overpriced fee structures immediately.

Step 3. In states that allow title insurance rate competition, call two independent title companies and request quotes on the same loan amount and property value. Document both quotes. Use the lower one.

Step 4. Calculate your prepaid items using the actual closing date. Prepaid interest depends on how many days remain in the month. Closing on the 28th minimizes this. Closing on the 2nd maximizes it. On a $600,000 loan at 6.75%, the difference between closing on the 2nd versus the 28th is $2,475 in prepaid interest at closing.

State-by-State Quick Reference

The following represents approximate total buyer closing costs as a percentage of purchase price for a median-priced conventional purchase. These exclude prepaid items and escrow deposits, which are cash outlays but not fees.

• New York (NYC): 3.5% to 5.5%
• Delaware: 3.2% to 4.1%
• Maryland: 2.8% to 3.6%
• Pennsylvania: 2.5% to 4.0% (varies by municipality)
• Connecticut: 2.4% to 3.2%
• New Jersey: 2.2% to 3.0%
• California: 1.8% to 2.8% (higher in LA and SF)
• Florida: 1.8% to 2.5%
• Washington: 1.7% to 2.4%
• Colorado: 1.5% to 2.2%
• Texas: 1.5% to 2.0%
• Missouri: 1.5% to 1.8%
• Indiana: 1.4% to 1.9%

These ranges widen on high-value properties in jurisdictions with progressive or tiered transfer tax structures.

Run Your Numbers Before You Make an Offer

Knowing the statewide average serves as a starting point only. Your actual closing costs depend on your purchase price, loan amount, closing date, county, municipality, lender, and title company.

The CalcMoney mortgage calculator accounts for state-specific transfer taxes, adjustable origination fee inputs, and prepaid item estimates tied to your actual closing date. Enter your numbers once and see a line-by-line breakdown before you commit to anything.

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