Closing costs in Tennessee
On a $500,000 home with 20% down, buyers in Tennessee typically pay about $7,666 to $19,958 at closing, including prepaid taxes and insurance.
Typical buyer total1.5%–4.0%Of the price, 20% down
Closings handled byA title or settlement companyCustomary in the state
Buyer-paid taxes2See below
Buyer-paid taxes
| Tax | On $500,000 with 20% down | Note |
|---|---|---|
| Realty transfer tax (0.37%), if the contract assigns it to you | $0 – $1,850 | Tennessee law places this tax on the buyer, but many contracts have the seller pay it. Check your contract. |
| Mortgage (indebtedness) tax (0.115% of the loan) | $458 | The first $2,000 of the loan is exempt. |
Estimated closing costs by price
| Price | Loan | Closing costs | Share of price |
|---|---|---|---|
| $300,000 | Conventional, 20% down | $6,139 – $15,054 | 2.0%–5.0% |
| $300,000 | FHA, 3.5% down | $6,470 – $15,874 | 2.2%–5.3% |
| $500,000 | Conventional, 20% down | $7,666 – $19,958 | 1.5%–4.0% |
| $500,000 | FHA, 3.5% down | $8,218 – $21,324 | 1.6%–4.3% |
| $750,000 | Conventional, 20% down | $9,575 – $26,088 | 1.3%–3.5% |
| $750,000 | FHA, 3.5% down | $10,403 – $28,138 | 1.4%–3.8% |
Who pays what in Tennessee
Tennessee’s transfer and mortgage taxes are collected by the county register of deeds.
Questions
How much are closing costs for buyers in Tennessee?
Often about 1.5% to 4.0% of the price with 20% down, including prepaid taxes and insurance.
Do buyers pay transfer tax in Tennessee?
Buyers typically pay: Realty transfer tax, if the contract assigns it to you; Mortgage.
More for Tennessee
Sources: Tennessee Code §67-4-409 (recordation tax on transfers and indebtedness). Fees are typical ranges, not quotes; your Loan Estimate lists the actual costs.