Seller Closing Costs by State: What Sellers Pay in CA, TX, AZ, IL, TN, and More

Buyers spend most of their time worrying about closing costs, but sellers have a significant closing cost obligation of their own. In most transactions, the seller's total closing costs run higher than the buyer's — primarily because the seller is typically responsible for the real estate agent commission, which alone can represent 4% to 6% of the sale price.

Understanding what sellers pay in your specific state helps you plan your net proceeds accurately and negotiate more confidently.

How Seller Closing Costs Are Determined

Seller closing costs fall into three buckets:

Commissions: Real estate agent compensation is the largest single closing cost for most sellers. Historically the total commission was split between the listing agent and buyer's agent, typically 5% to 6% of the sale price. Commission structures have been evolving following regulatory changes in 2024, with buyers and sellers now more commonly negotiating agent fees separately. The seller is usually still responsible for the listing agent's commission; the buyer's agent compensation is now an open negotiation point.

Transfer taxes and recording fees: Many states and localities impose a tax when real estate changes hands. In some states the seller pays it; in others it is split or paid by the buyer. Recording fees for releasing the old mortgage are generally the seller's responsibility.

Third-party settlement costs: Title insurance (in some states the seller pays the owner's policy), escrow or attorney fees, home warranty costs, and outstanding liens or judgments that must be cleared at closing.

California

In California, sellers typically pay:

• Real estate commission: Listed at a negotiated rate, commonly 2.5% to 3% for the listing agent, with the buyer's agent commission now separately negotiated
• County transfer tax: $1.10 per $1,000 of sale price (0.11%) charged by the county; some cities impose additional city transfer taxes on top
• City transfer taxes: San Francisco charges up to 2.75% of the sale price on higher-value homes; Los Angeles charges 0.45%
• Escrow fee: Paid to the escrow company; shared between buyer and seller in most Southern California counties; seller pays in some Northern California counties
• Owner's title insurance: Customary for the seller to pay in most Northern California counties; varies by region

For a home sold at $700,000 in a county without a city transfer tax, total seller closing costs excluding commission typically run $3,000 to $6,000.

Texas

Texas is a low-cost state for closing fees:

• No state transfer tax: Texas does not levy a real estate transfer tax, which keeps seller costs lower than many other states
• Real estate commission: Negotiated; the listing agent's portion is typically 2.5% to 3%
• Title insurance: The seller customarily pays for the owner's title insurance policy in Texas; rates are promulgated (set by the state), so you can calculate the cost precisely based on sale price
• HOA transfer fee and estoppel certificate: If the property is in an HOA, the seller typically pays to transfer the account and obtain an estoppel letter confirming no outstanding dues

Total seller closing costs in Texas excluding commission generally run $1,500 to $4,000 depending on property type and HOA involvement.

Arizona

Arizona is also a relatively low-cost closing state for sellers:

• No state transfer tax: Arizona exempted itself from real estate transfer taxes by statute
• Real estate commission: Negotiated, typically 2.5% to 3% for listing agent
• Owner's title insurance: Arizona custom varies by county — in Maricopa County (Phoenix), the seller typically pays for the owner's policy; in Pima County (Tucson), it is more often split or buyer-pays
• Escrow fee: Split between buyer and seller

For buyers in Arizona, average closing costs run approximately $8,000 to $11,000 on a $400,000 purchase, driven primarily by prepaid escrow items and lender fees rather than transfer taxes.

Tennessee

Tennessee sellers face a notable transfer tax:

• Documentary stamp tax: Tennessee charges $0.37 per $100 of the sale price. On a $350,000 home, that is approximately $1,295.
• Real estate commission: Negotiated; listing agent typically 2.5% to 3%
• Title insurance: The buyer typically pays for title insurance in Tennessee transactions, which reduces the seller's burden on that line
• Recording fees: The seller pays to record the release of their mortgage

Seller closing costs in Tennessee excluding commission typically run $2,000 to $4,500 on a mid-range home.

Illinois

Illinois sellers pay a meaningful transfer tax burden:

• State transfer tax: Illinois charges $0.50 per $500 of sale price (0.1%), paid by the seller
• County transfer tax (Cook County): $0.75 per $500 (0.15%) in Cook County, paid by the seller
• City transfer tax (Chicago): Significantly higher at $3.75 per $500 (0.75%) for Chicago properties, paid by the buyer. Despite the buyer technically paying, it is sometimes negotiated as a concession.
• Attorney fee: Illinois is an attorney state — the seller must hire a real estate attorney, typically $700 to $1,500
• Real estate commission: Negotiated

For a $400,000 home in suburban Cook County, a seller's closing costs excluding commission typically total $4,000 to $7,000.

Utah

Utah is among the lower-closing-cost states for sellers:

• No state transfer tax: Utah does not charge a real estate transfer tax
• Real estate commission: Negotiated; listing agent typically 2.5% to 3%
• Title insurance: Customary in Utah for the buyer to pay the owner's title insurance, reducing seller obligation
• Escrow fee: Split between buyer and seller in most Utah transactions

Seller closing costs in Utah excluding commission generally run $1,000 to $3,000.

What Sellers Should Budget Overall

A rule of thumb is that sellers should expect to pay 6% to 10% of the sale price at closing. The majority of that — roughly 4% to 6% — is agent commissions. The remaining 2% to 4% covers transfer taxes, title fees, attorney fees where required, and any concessions negotiated in the offer.

For buyers, it is worth remembering that the seller's closing cost burden directly affects how much flexibility they have to offer concessions. A seller with significant equity and low transfer taxes has more room to negotiate. A seller in a high-tax state with a smaller equity position may be less willing to contribute to buyer's closing costs.

The Closing Cost Guide includes state-specific worksheets for both buyers and sellers, with a net proceeds calculator that accounts for transfer taxes, agent fees, and the common closing costs in your transaction state.