Estimate Your Closing Costs
Advanced (edit assumptions)
Down payment: —
Disclaimer: These are estimates only. Actual closing costs vary by lender, title company, state/county, and closing date. Your Loan Estimate (TRID) is the source of truth.
Tennessee Closing Costs Breakdown
Closing costs in Tennessee typically range from 2% to 3% of the purchase price. For a median-priced home near $336,000, buyers should budget $6,720 to $10,080 at closing. Tennessee has no income tax on wages and a modest transfer tax, making it a relatively affordable state for homeownership overall.
Transfer Taxes & Fees
Tennessee charges a state transfer tax of $0.37 per $100 of the sale price (0.37%), paid by the seller. Counties may add an additional $0.14 per $100 (0.14%), resulting in a combined rate of up to 0.51% of the sale price. On a $336,000 home, the combined seller transfer tax is approximately $1,714. Tennessee also charges a mortgage tax of $0.115 per $100 of the loan amount, paid by the buyer.
Attorney Requirements
No, Tennessee is a title company state. Licensed title companies conduct real estate closings. Buyers are not required to hire a real estate attorney, though many Nashville and Memphis buyers do retain counsel for contract review given the speed and complexity of those markets.
Local Quirks & Need-to-Know
Tennessee's mortgage recording tax (paid by the buyer) is $0.115 per $100 of the mortgage amount. On a $280,000 loan, this is $322. Nashville's surging real estate market has pushed home prices well above the state median, so Williamson County and Davidson County buyers often face significantly higher dollar amounts at closing despite the same percentage rates. Property taxes are paid in arrears, and a seller credit is standard at closing.