Closing Costs in Tennessee: Who Pays What, and How Much

*Disclosure:* Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

You've got an offer to write, or one to answer, and there's a section in it about who pays what at closing. A few thousand dollars gets decided in that section, so do the math before you sign.

I've been selling real estate since 2013 and investing since 2005, with more than 500 transactions and more than $500 million in career sales. I went back through the Tennessee closing statements in my own files to check the splits on this page. Want your own numbers? DM me, text or call 615-392-1186.

Who pays closing costs in Tennessee?

Both the buyer and the seller pay closing costs in Tennessee. State law says who owes the two recording taxes, and your purchase agreement settles everything else. The split in this table follows the standard Tennessee REALTORS purchase agreement, form RF401, version 03/31/2026. Any line can be changed in your contract.

Your agreement controls, so read yours before you count on a line in this table. A buyer who pays with cash skips the lender lines and the mortgage tax.

How much are closing costs in Tennessee?

Closing costs in Tennessee depend on your price, your loan and your contract, so I'd rather show you the math than quote an average. On a $500,000 sale in Thompson's Station, in Williamson County, my example comes to about $7,730 for the buyer before the down payment and about $33,145 for the seller before the mortgage payoff.

Here's the math on a home in Thompson's Station, where I live. It closes June 30, the buyer puts 20% down on a conventional loan, and the county's appraised value is also $500,000.

Seller closing costs in Tennessee usually include the commission you agreed to, your closing fee, deed preparation, your loan payoff and release fees, and property tax up to closing. The owner's title policy lands on you if your contract says so. In my $500,000 Thompson's Station example they come to about $33,145 before the mortgage payoff.

The buyer's total runs about 1.5% of the price, and the seller's about 6.6%, with the commission as most of it. If your contract moves the transfer tax to the seller, $1,850 moves from the buyer's table to the seller's. If the buyer takes the owner's policy, that line moves the other way.

Lines marked "example" are round numbers to show the math, not quotes. The 7.27% is Mortgage News Daily's 30-year fixed index, read October 30, 2026. A June 30 closing carries one day of prepaid interest, and a June 15 closing would carry 16 days, about $1,275.

*Disclosure:* Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

*Disclosure:* Rates, APRs, buydowns and builder incentives on this page are published by the builder or lender named, were read on the date shown, and can change or end without notice. They are not an offer of credit from me or eXp Realty, and I am a licensed Realtor (TREC 369038), not a mortgage lender. Confirm the current terms, APR, eligibility and any lender requirement in writing with the builder or lender before you rely on them.

What is the Tennessee transfer tax?

The Tennessee transfer tax is $0.37 per $100, or $3.70 per $1,000, as of October 2026. It's a state tax, so the rate is the same in Williamson, Maury and Davidson counties. It's figured on the price or the property's value, whichever is greater, so a $500,000 sale carries $1,850.

Who pays the transfer tax in Tennessee?

By law the buyer owes the Tennessee transfer tax, because the statute puts it on the grantee. The standard contract puts it on the buyer too. Who pays it in your deal is still negotiated in the offer, so a seller can agree to pay it if the contract says so.

Tenn. Code Ann. 67-4-409 says the tax "shall be paid by the grantee or transferee," and the Department of Revenue says the same. RF401 lists transfer taxes under the buyer's expenses. If you're financing and the seller is paying it, ask your lender whether that counts against your seller concession limit.

Some transfers aren't taxed, including certain transfers between spouses, property adjustments in a divorce and certain revocable trust transfers. Ask the title company or a Tennessee real estate attorney if yours might qualify.

What is the mortgage tax in Tennessee?

The Tennessee mortgage tax is $0.115 per $100 of the loan, or $1.15 per $1,000, and the first $2,000 isn't taxed, as of October 2026. On a $400,000 loan that's $457.70. By law it falls on the borrower, and a cash buyer doesn't pay it.

The Department of Revenue's rate page lists the rate, and the statute puts the tax on the "mortgagor, grantor or debtor." Your closing statement may call it state tax or stamps on the deed of trust. Roll an FHA, VA or USDA upfront fee into the loan and the tax runs on the bigger balance, which my buyer closing cost calculator works out for you.

The register's recording fees come from Tenn. Code Ann. 8-21-1001: $12 for the first two pages and $5 for each page after, plus $1 when state tax is paid. A three-page deed comes to $18.

*Disclosure:* Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

Who pays for title insurance in Tennessee?

Title insurance in Tennessee gets paid however your contract says. RF401 leaves a blank for the title search, the lender's policy and the owner's policy, at rates filed with the Tennessee Department of Commerce and Insurance, so fill that blank in on purpose.

The two policies protect different people. Lenders typically require a lender's policy, which covers the loan amount. The owner's policy protects you, and the CFPB says you may want one. It also says shopping can save you money and that buying both from one provider usually costs less.

What do real Tennessee closing statements show?

My own Tennessee closing statements from November 2024 to October 2026 put the transfer tax on the buyer's side on all 27 where I could read the line, including two drafts.

The owner's policy went three ways. It was readable on 24: the buyer paid it on 13, the seller on 7, and they split it on 4. Closing fees ran $400 to $600 a side on nearly every one, and $550 came up most. Title premiums moved a lot from deal to deal, so get a quote for your price and policy.

Those are one agent's files, so treat them as a sample. Your contract and your title company's quote decide your numbers.

What are closing and attorney fees in Tennessee?

Closing and attorney fees in Tennessee usually go to the title company or attorney handling the closing, and each side pays its own. RF401 gives the seller the seller's closing fee, document preparation or attorney's fees, deed preparation and the notary on the deed. It gives the buyer the buyer's closing fee, document preparation or attorney's fees, and the note and deed of trust.

The seller also pays what it takes to clear the title: loans and liens, release preparation and release recording. If there's a legal question on your deal, that's one for a Tennessee real estate attorney.

HOA costs split too. Under RF401 the seller pays dues owed through closing and special assessments approved or levied before closing, unless the contract says otherwise. The buyer pays the association's transfer fees and capital contributions.

What are prepaid items and lender fees?

Prepaid items and lender fees are the buyer's costs of getting and setting up the loan. Lender fees cover things like origination, underwriting, the appraisal and the credit report, plus discount points if you buy them. The CFPB lists property tax, homeowners insurance and interest up to your first payment as prepaid items.

Prepaid interest covers the days from closing to the end of that month. Your lender also collects homeowners insurance and starts an escrow account, and it sets the months.

Your Loan Estimate lists all of it. Your lender has to give you the Closing Disclosure at least three business days before you close, so compare the two then.

How is property tax prorated at closing in Tennessee?

Property tax at a Tennessee closing is split by days, with the seller paying from January 1 through the closing date. Bills come due the first Monday in October and go delinquent March 1, so for most of the year the bill is still unpaid at closing. The due date and delinquency date are state law.

The seller credits the buyer for those days, and the buyer pays the whole bill when it comes. In my example that's $1,753.75 x 181 / 365, or $869.67. If the seller already paid this year's bill, the credit runs the other way.

RF401 prorates as of the closing date and uses last year's rate and assessment if this year's rate isn't set, and the two sides settle up if it changes. Prior-year taxes and any rollback taxes stay with the seller.

The bill comes from the assessor's appraised value, which can differ from your price. The state assesses a home at 25% of that value, and the rate applies per $100 of the assessed amount.

Do closing costs change by county in Tennessee?

The state taxes and the state recording fee schedule are the same in Williamson, Maury and Davidson counties, though a county can add a small electronic filing fee. Property tax does, and that moves the seller's proration and the buyer's escrow. Davidson County's filing fee page follows the same state schedule, and the fee calculator on Maury County's Register of Deeds page shows $17 for a three-page deed before the $1 fee, which is the statute's figure.

Same home value, same closing date, and the seller in Davidson County's Urban Services District pays about $875 more on this one line than the seller in Thompson's Station. Rates come from the Williamson County 2026 chart, Maury County Resolution 07-26-29, the City of Columbia's budget packet) and Metro Ordinance BL2026-1378 for fiscal year 2026-27.

Spring Hill sits in both Williamson and Maury counties, and the ZIP won't tell you which side a home is on. Send me the address and I'll check the county, the tax and the water, or use my Spring Hill property tax calculator.

*Disclosure:* Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

Are closing costs negotiable in Tennessee?

Nearly all closing costs in Tennessee are negotiable in the contract. You can't negotiate the state tax rates or the register's fees, but you can negotiate who pays them. Commission is negotiable and set by agreement. RF401 has a line for changing the split, so put whatever you agree to in writing.

RF401 reads: "Broker compensation is not set by law and compensation rates are fully negotiable." Your listing agreement sets what a seller pays, and a buyer's agreement sets what a buyer's agent is owed. My real estate commission guide covers how that works now.

A seller can also put money toward the buyer's costs, and how much depends on the loan. My seller concession guide has the limit for each program, so start there before you write a number into an offer.

Can closing costs lower the tax on a home sale?

Closing costs can lower your taxable gain, because selling expenses come off the sale price and some purchase costs go into your basis. My capital gains guide shows how that works. Talk to a tax professional about your own numbers before you count on it.

*Disclosure:* Tax figures on this page are the federal rules as published for 2026 and are for planning only. I am a licensed Realtor (TREC 369038), not a tax professional or a lender. Confirm your own situation with a CPA, and any borrowing limit with your lender, before you rely on a number.

How do you get your real closing costs?

Your real closing costs come from your contract, your lender's Loan Estimate and a title quote.

1. Confirm the county and city limits, because they set the property tax rate.
2. Sellers, run my home sale calculator. Buyers, run my buyer closing cost calculator.
3. Read the Closing Expenses section of your contract, section 2.D on RF401, and fill in the title blank.
4. Get the title company's quote and your lender's Loan Estimate.
5. Compare your Closing Disclosure to that estimate as soon as it arrives.

Selling in Thompson's Station? Read my seller closing costs guide. Buying there? Read my buyer closing costs guide.

I'll run a net sheet against your actual payoff and a real title quote for free. If you're buying, I'll go through your Loan Estimate with you line by line.

Frequently asked questions about closing costs in Tennessee

Who pays closing costs in Tennessee?

Both the buyer and the seller pay closing costs in Tennessee. State law says who owes the two recording taxes, and your purchase agreement settles everything else.

How much are closing costs in Tennessee?

Closing costs in Tennessee depend on your price, your loan and your contract, so I'd rather show you the math than quote an average. On a $500,000 sale in Thompson's Station, in Williamson County, my example comes to about $7,730 for the buyer before the down payment and about $33,145 for the seller before the mortgage payoff.

What is the transfer tax in Tennessee?

The Tennessee transfer tax is $0.37 per $100, or $3.70 per $1,000, as of October 2026. It's a state tax, so the rate is the same in Williamson, Maury and Davidson counties. It's figured on the price or the property's value, whichever is greater, so a $500,000 sale carries $1,850.

Who pays the transfer tax in Tennessee?

By law the buyer owes the Tennessee transfer tax, because the statute puts it on the grantee. The standard contract puts it on the buyer too. Who pays it in your deal is still negotiated in the offer, so a seller can agree to pay it if the contract says so.

What is the mortgage tax in Tennessee?

The Tennessee mortgage tax is $0.115 per $100 of the loan, or $1.15 per $1,000, and the first $2,000 isn't taxed, as of October 2026. On a $400,000 loan that's $457.70. By law it falls on the borrower, and a cash buyer doesn't pay it.

What are seller closing costs in Tennessee?

Seller closing costs in Tennessee usually include the commission you agreed to, your closing fee, deed preparation, your loan payoff and release fees, and property tax up to closing. The owner's title policy lands on you if your contract says so. In my $500,000 Thompson's Station example they come to about $33,145 before the mortgage payoff.

How is property tax prorated at closing in Tennessee?

Property tax at a Tennessee closing is split by days, with the seller paying from January 1 through the closing date. Bills come due the first Monday in October and go delinquent March 1, so for most of the year the bill is still unpaid at closing.

Do closing costs change by county in Tennessee?

The state taxes and the state recording fee schedule are the same in Williamson, Maury and Davidson counties, though a county can add a small electronic filing fee. Property tax does, and that moves the seller's proration and the buyer's escrow.

Are closing costs negotiable in Tennessee?

Nearly all closing costs in Tennessee are negotiable in the contract. You can't negotiate the state tax rates or the register's fees, but you can negotiate who pays them. Commission is negotiable and set by agreement.

*Disclosure:* Property tax figures are the county and city rates published for the year shown and are for planning only. Your actual bill depends on the assessed value, any exemptions and the city or district the home sits in. Confirm with the county assessor or trustee and your tax professional before you rely on a number.

Want your own closing numbers?

Tell me the address and the price, and I'll show you where your closing costs land. DM me, text or call 615-392-1186.