Texas Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers

Texas has no real estate transfer tax. Article VIII, Section 29 of the Texas Constitution says no law may be enacted after January 1, 2016 that imposes a transfer tax on a transaction conveying fee simple title to real property. Texas sellers still pay commission, loan payoff, prorated taxes and title and escrow fees.

Texas takes the biggest surprise line off the table

In many states the transfer tax is the number sellers forget. In Texas it does not exist, and the reason is in the state constitution rather than in a tax code that could change next session.

Article VIII, Section 29 of the Texas Constitution is titled “Transfer Tax on Transaction Conveying Fee Simple Title to Real Property Prohibited.” Subsection (a) says that after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property. Subsection (b) lists taxes the section does not prohibit, such as a general business tax measured by business activity and a tax on mineral production. Those are not taxes on the sale of a house.

Item	Texas
State transfer tax on a sale	None (Texas Constitution, Art. VIII, Sec. 29)
Local transfer tax	Not addressed by the section text we reviewed; confirm locally
Agent commission	Negotiable
Title insurance	Texas Department of Insurance publishes rate charts; ask your title company for a quote

Worked example: a hypothetical $300,000 sale

With no transfer tax rate to apply, the math is short.

• $300,000 x 0% = $0 state transfer tax

For comparison, Tennessee’s realty transfer tax of $0.37 per $100 would be $1,110 on the same price (3,000 x $0.37). That $1,110 is a real difference when you are comparing markets for a flip.

What Texas sellers still pay

No transfer tax does not mean no closing costs. Expect these:

• Agent commission. Negotiable.
• Mortgage payoff. Your balance plus interest through payoff, plus any lender payoff fees.
• Prorated property taxes. Settled between buyer and seller at closing. How the split works is set by your contract.
• Title, escrow and settlement fees. Vary by company. Who pays each fee is set by your purchase contract, so ask your title company or closing attorney what is customary locally.
• Title insurance. The Texas Department of Insurance publishes title rate charts, with a Title Rate Chart dated March 1, 2026 on its title insurance page. Ask your title company for the premium on your price.
• Recording and document fees. Your closing agent can quote the county charges.
• Repairs and credits. Whatever you negotiate after inspection.

This guide does not list a Texas recording fee amount because it varies by county and document. Ask for an itemized estimate before you list.

What this means if you flip or wholesale in Texas

The flip math is cleaner. You owe no state transfer tax on your purchase, and your end buyer owes none on your exit. That frees margin that would go to the tax in other states, so your costs come down to commission, financing, title and escrow, and carrying costs.

Wholesalers should still count closings. An assignment typically means one closing and one set of title and escrow costs. A double close means two closings and two sets of costs. With no transfer tax, the extra cost of a double close in Texas is the second round of fees, not a percentage of the price. Whether to double close is then a question of fees against your end buyer’s comfort with an assignment and what your title company will do.

For your maximum allowable offer:

1. Start from after-repair value and subtract repairs, holding costs, financing costs and your profit target.
2. Subtract commission and selling costs on your exit.
3. Subtract title and escrow charges on each closing. Leave the transfer tax line at $0, but keep the row in your spreadsheet so you can compare another state.

Do not assume the lack of a state tax covers everything. Get an itemized estimate from the title company handling your deal.

Run your numbers

Automize CRM has a free closing cost calculator for building seller costs into an offer.

This guide is general information, not tax or legal advice. Confirm your exact figures with your title company or closing attorney.

Sources

• Texas Constitution, Article VIII (Taxation and Revenue), Section 29: Transfer Tax on Transaction Conveying Fee Simple Title to Real Property Prohibited
• Texas Department of Insurance: Title Insurance
• Tennessee Department of Revenue: Recordation Tax Manual (comparison figure)

Rates checked October 24, 2026. General information, not tax or legal advice.

Common questions

Does Texas have a real estate transfer tax?

No. Article VIII, Section 29 of the Texas Constitution says that after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property. Texas sellers do not pay a state transfer tax percentage on the sale price.

What closing costs do Texas sellers still pay?

Common seller costs include agent commission, which is negotiable, the mortgage payoff, prorated property taxes, and title, escrow and recording charges. Who pays each fee is set by your purchase contract. Ask your title company or closing attorney what is customary locally and get an itemized estimate.

Are Texas title insurance premiums set by the state?

The Texas Department of Insurance publishes title insurance rate charts, including a Title Rate Chart dated March 1, 2026. Ask your title company to quote the premium for your sale price. Who pays for the owner’s policy is set by your purchase contract.

Does no transfer tax mean a Texas double close is cheap?

It removes the transfer tax from both closings, which helps. A double close still means two closings and two sets of title, escrow and recording costs. Compare the all-in cost of two closings against an assignment before you decide, and confirm figures with your title company.