Cheapest States to Buy a Home: Closing Costs Ranked (2026)
FAHAQ Study · Updated 2026-07-19 · 2026 data
Average buyer closing costs as a share of home price, ranked for all 51 US jurisdictions — transfer taxes are the great divider.
Beyond the down payment, buyers pay one-time closing costs — lender fees, title insurance, transfer taxes and prepaids — that swing widely by state. We ranked all 51 jurisdictions by average buyer closing costs as a percentage of price. South Dakota is cheapest at 0.46%; Delaware is priciest at 2.99%, driven by a steep real-estate transfer tax.
| # | State | Closing cost % | Cost on median home |
|---|---|---|---|
| 1 | South Dakota | 0.46% | $1,184 on $257,400 |
| 2 | Alaska | 0.54% | $1,906 on $352,900 |
| 3 | North Carolina | 0.56% | $1,618 on $288,900 |
| 4 | Colorado | 0.59% | $3,182 on $539,400 |
| 5 | Missouri | 0.60% | $1,382 on $230,300 |
| 6 | Montana | 0.60% | $2,255 on $375,800 |
| 7 | Hawaii | 0.62% | $5,202 on $839,100 |
| 8 | Iowa | 0.64% | $1,331 on $208,000 |
| 9 | South Carolina | 0.65% | $1,684 on $259,000 |
| 10 | Oregon | 0.67% | $3,200 on $477,600 |
| 11 | North Dakota | 0.69% | $1,724 on $249,900 |
| 12 | Idaho | 0.70% | $2,930 on $418,600 |
| 13 | Indiana | 0.70% | $1,527 on $218,200 |
| 14 | Utah | 0.72% | $3,524 on $489,400 |
| 15 | California | 0.74% | $5,437 on $734,700 |
| 16 | Nebraska | 0.74% | $1,766 on $238,600 |
| 17 | Rhode Island | 0.75% | $3,032 on $404,200 |
| 18 | Arizona | 0.76% | $2,998 on $394,500 |
| 19 | Wisconsin | 0.76% | $2,025 on $266,500 |
| 20 | Wyoming | 0.76% | $2,354 on $309,700 |
| 21 | Kansas | 0.80% | $1,738 on $217,200 |
| 22 | Massachusetts | 0.81% | $4,553 on $562,100 |
| 23 | Arkansas | 0.84% | $1,579 on $188,000 |
| 24 | Nevada | 0.84% | $3,657 on $435,400 |
| 25 | New Mexico | 0.84% | $2,084 on $248,100 |
| 26 | Maine | 0.88% | $2,610 on $296,600 |
| 27 | Alabama | 0.89% | $1,868 on $209,900 |
| 28 | Kentucky | 0.91% | $1,871 on $205,600 |
| 29 | Minnesota | 0.91% | $2,997 on $329,300 |
| 30 | New Jersey | 0.92% | $4,180 on $454,400 |
| 31 | Connecticut | 0.93% | $3,412 on $366,900 |
| 32 | Texas | 0.93% | $2,639 on $283,800 |
| 33 | Mississippi | 0.98% | $1,664 on $169,800 |
| 34 | Washington | 1.01% | $5,702 on $564,600 |
| 35 | Ohio | 1.07% | $2,298 on $214,800 |
| 36 | Michigan | 1.08% | $2,501 on $231,600 |
| 37 | Oklahoma | 1.08% | $2,158 on $199,800 |
| 38 | West Virginia | 1.14% | $1,854 on $162,600 |
| 39 | Tennessee | 1.18% | $3,383 on $286,700 |
| 40 | Louisiana | 1.20% | $2,598 on $216,500 |
| 41 | Georgia | 1.24% | $3,761 on $303,300 |
| 42 | Illinois | 1.30% | $3,423 on $263,300 |
| 43 | New Hampshire | 1.34% | $5,394 on $402,500 |
| 44 | Virginia | 1.36% | $5,218 on $383,700 |
| 45 | Florida | 1.82% | $6,534 on $359,000 |
| 46 | Maryland | 2.03% | $8,524 on $419,900 |
| 47 | Vermont | 2.20% | $6,965 on $316,600 |
| 48 | Pennsylvania | 2.36% | $6,006 on $254,500 |
| 49 | District of Columbia | 2.39% | $17,617 on $737,100 |
| 50 | New York | 2.47% | $10,468 on $423,800 |
| 51 | Delaware | 2.99% | $10,525 on $352,000 |
Each row links to that state’s full FAHAQ calculator. Figures are for 2026.
Methodology
Average buyer closing costs as a percent of home price come from LodeStar's 2026 Purchase Mortgage Closing Cost Data Report as compiled by Bankrate, covering lender/origination, title & escrow, government transfer & recording taxes, appraisal/inspection and prepaids — but excluding real-estate agent commissions (usually paid by the seller). The single biggest driver of state-to-state variation is the real-estate transfer tax. The "cost on median home" column applies each state's percentage to its Census median home value. States are ranked ascending, cheapest first.
Sources
- ·Bankrate — Average Closing Costs by State (2026)
- ·LodeStar — 2026 Purchase Mortgage Closing Cost Data Report
- ·U.S. Census Bureau — American Community Survey (median home values)
Frequently asked questions
Which state has the cheapest closing costs?
South Dakota has the lowest average buyer closing costs at 0.46% of the purchase price, thanks to no state transfer tax and light settlement customs. Missouri, Indiana and the Carolinas also rank low.
Why are closing costs so high in some states?
Real-estate transfer, deed and "mansion" taxes. States like Delaware, New York, Pennsylvania and Maryland levy steep transfer taxes that can push buyer closing costs well above 2% of the home price.
Do these closing costs include the real-estate agent commission?
No. Agent commissions are typically paid by the seller and are excluded here. These figures cover the buyer's one-time costs to close a purchase mortgage: lender fees, title & escrow, transfer/recording taxes, appraisal and prepaids.
Are these exact closing costs?
No — they are state averages. Your actual costs depend on your lender, loan type, purchase price, points and negotiations (sellers often pay part). Always get a Loan Estimate from your lender for exact figures.