Closing costs by state
Closing costs in Tennessee
Closing costs in Tennessee run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $11,535. Tennessee charges a state transfer tax of $0.37 per $100 of consideration or value, whichever is greater (realty transfer tax, Tenn. Code Ann. § 67-4-409), about 0.37% of the price, and the buyer customarily pays it.
Last verified ·Sources:tn.gov·ctas.tennessee.edu
The rules
What Tennessee does differently
- State transfer tax
- $0.37 per $100 of consideration or value, whichever is greater (realty transfer tax, Tenn. Code Ann. § 67-4-409) (about 0.37% of the price at $400,000).
- Who pays it
- Buyer, by custom.
- County and city add-ons
- None; county registers collect it for the state. A separate indebtedness tax of $0.115 per $100 above $2,000 applies to the buyer's mortgage.
- Attorney at closing
- Tennessee does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- The seller customarily pays for the owner’s title insurance policy in Tennessee; the buyer pays for the lender’s policy.
- Notes
- The statute puts the tax on the grantee: $1,480 on a $400,000 sale, paid by the buyer unless negotiated. Title companies and attorney-run closing firms both conduct closings.
- tn.gov — “Tennessee imposes a tax of $0.37 per $100 for the privilege of publicly recording documents evidencing all transfers of realty”
- ctas.tennessee.edu — “The grantee must pay the tax on the value of the property or the consideration given, whichever is greater”
Worked example
A $400,000 home in Tennessee, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow Tennessee’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Transfer tax, buyer’s share (0.37%) | $1,480 |
| Total (2.884% of price) | $11,535 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Owner’s title policy (estimate) | $1,500 |
| Prorated property tax | $1,500 |
| Total | $25,000 |
Questions
What people ask about Tennessee
- Who pays the transfer tax in Tennessee?
- Tennessee charges a state transfer tax of $0.37 per $100 of consideration or value, whichever is greater (realty transfer tax, Tenn. Code Ann. § 67-4-409), about 0.37% of the price, and the buyer customarily pays it.
- Do you need an attorney to close on a house in Tennessee?
- Tennessee does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in Tennessee?
- The seller customarily pays for the owner’s title insurance policy in Tennessee; the buyer pays for the lender’s policy.
- How much are seller closing costs in Tennessee?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,000 for the seller, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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