Average Closing Costs by State (2026)
Closing costs vary dramatically by state — from under $2,000 in South Dakota to over $17,000 in Washington D.C. The difference comes down to transfer taxes, title insurance regulation, attorney requirements, and recording fee structures unique to each state. This guide covers the key factors that drive costs higher or lower, and what a normal closing cost looks like in your market.
What drives closing cost differences between states
Four factors account for most of the variation in closing costs across states:
Transfer taxes are the single biggest driver. States like Pennsylvania (1% state + local, often totaling 2–4%), New York (0.4% state + NYC surcharges + mansion tax), and Washington D.C. (1.1–1.45% recordation + 1.1–1.45% transfer) impose substantial taxes on every real estate transaction. States like Wyoming, Montana, and Missouri have no transfer tax at all.
Title insurance regulation determines how much you'll pay for title coverage. In states like Texas, New Mexico, and Florida, rates are promulgated (set by the state) and every company charges the same. In unregulated states, rates vary widely and can be negotiated. Iowa is unique — the state offers title guaranty through a government-run program for a flat fee well below market.
Attorney state requirements add $500–$1,500 to closing costs in the 22 states where an attorney must be present or conduct the closing. These include New York, Massachusetts, Georgia, South Carolina, and others.
Home prices affect the percentage-based fees. Title insurance, origination fees, and transfer taxes all scale with purchase price — so high-cost markets like California, Washington, and New York generate higher absolute closing costs even at the same percentage rates.
Highest closing cost states
Washington D.C. consistently ranks first nationally due to its high transfer taxes (buyer pays 1.1–1.45% recordation tax, seller pays 1.1–1.45% transfer tax) combined with high home prices averaging $630K+.
New York is second-highest, driven by NYC mansion tax (1–3.9% on purchases over $1M), state transfer tax (0.4%), NYC transfer tax (1–1.425%), and attorney requirements. Even outside NYC, New York State mortgage recording tax adds 0.75–1.8% of the loan amount.
Delaware charges a combined 4% transfer tax (2% state + 2% county for most counties) making it one of the highest in the nation as a percentage of home price.
Pennsylvania imposes a state transfer tax of 1% plus local transfer tax, which in Philadelphia is 3.278% combined — one of the highest municipal rates in the country.
Other high-cost states: Connecticut (0.75–1.25% conveyance tax), Maryland (state + county transfer taxes totaling 1.5–3%), and Vermont (2.5% for non-principal residences under Act 181 effective 2024).
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Lowest closing cost states
Wyoming, Montana, North Dakota, and South Dakota have no transfer tax, low recording fees (typically $12–$30 per document), and lower home prices — keeping total closing costs under $3,000 on a typical transaction.
Missouri stands out as a no-transfer-tax state with a constitutional prohibition on real estate transfer taxes, combined with moderate title insurance rates and recording fees.
Kansas, Nebraska, and Iowa also rank among the lowest. Iowa is particularly notable — the Iowa Title Guaranty program provides owner's title insurance for free on homes under $750K, eliminating the typically $500–$2,000 owner's policy cost entirely.
As a general rule, states without transfer taxes and in the Midwest or Plains regions tend to have the lowest total closing costs, while coastal states and those with significant transfer taxes have the highest.
How to know if your closing costs are above average
The best benchmark isn't a national average — it's a state-specific comparison. Lender fees (origination, underwriting, processing) should be consistent across states for the same loan size. What varies are the government and third-party fees.
For lender fees: origination charges above 1% of the loan amount on a conventional loan warrant scrutiny. Underwriting fees above $900 or processing fees above $700 are above market for most lenders.
For title insurance: compare your quote to the state benchmark. In regulated states, every company charges the same rate — you're looking for computation errors. In unregulated states, you can shop multiple title companies and the difference can be $500–$1,500.
Fair Closing Check compares every line item on your Closing Disclosure against state-specific benchmarks for all 50 states and D.C., so you can see exactly which fees are above normal for your market.
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