Average Closing Costs by State
Last reviewed October 24, 2026
On a national basis, buyers should plan on 2–5% of the loan amount in closing costs. Bankrate's 2025 LodeStar state analysis puts the average purchase closing bill at $4,661 including recording fees and taxes — about 1.6% of the average home price — or $3,042 without them. Where you close moves the total more than who you lender with: the spread between the cheapest and priciest states is roughly tenfold.
The most expensive states
| State | Average purchase closing costs |
|---|---|
| District of Columbia | $17,545 |
| New York | $13,000+ |
| Delaware | $12,000+ |
The least expensive states
| State | Average purchase closing costs |
|---|---|
| Iowa | $1,640 |
| South Dakota | $1,551 |
| Missouri | $1,740 |
Dollar figures are loan-level averages from Bankrate's LodeStar analysis and can shift with loan mix; treat them as sizing, not quotes.
Why states differ so much
Three structural factors: transfer taxes (Delaware's combined rate runs about 4.0%, while roughly 14 states — including South Dakota and Missouri — charge no state-level transfer tax at all), title-insurance model (a few states like Texas, New Mexico, and Florida set promulgated rates; Iowa runs a state guaranty system instead of title insurance), and attorney requirements — some states effectively require an attorney at closing, adding a fee line most states never see. Verify any transfer-tax percentage against your state's department of revenue before relying on it; compilations drift.
What this means for your budget
Size your cash-to-close with our closing cost calculator, then read the line-by-line structure in closing costs, explained. Sellers face their own state-side costs — see sell vs. stay for how closing costs net against timing decisions.