What it costs to sell a home in Texas
Every common line on a Texas seller's closing statement, who usually pays it, and what is negotiable.
Updated November 2026
Short answer: the usual costs are agent commission, the owner’s title policy, closing fees, prorated property taxes and any repairs or credits you agree to, plus paying off any loans or liens. Texas charges no transfer tax on home sales. Your real total depends on your contract, so ask for a seller’s net sheet.
Texas has no state income tax and no transfer tax on home sales, which keeps seller costs lower than in many states. Federal tax on the gain can still apply, but if you owned the home and lived in it as your main home for at least two of the five years before the sale, you can usually exclude up to $250,000 of gain, or $500,000 for most married couples filing jointly. Here is what usually appears on a seller’s closing statement. Almost everything below is negotiable in the contract.
| Cost | Who usually pays in Texas | Notes |
|---|---|---|
| Listing agent commission | Seller | Not set by law and negotiable. Agreed in your listing agreement. |
| Buyer’s agent compensation | The buyer, unless you agree otherwise | Since August 17, 2024, the buyer’s own written agreement with their agent sets this pay. A buyer may ask you to pay some or all of it as part of the offer; you pay only if you agree to it in the contract. |
| Owner’s title insurance policy | Seller or buyer, as agreed | The contract names who pays. The premium is set by the Texas Department of Insurance, so it is the same at every title company. |
| Escrow or closing fee | Split in the standard contract | Charged by the title company; the standard Texas contract splits it half and half. Unlike the title premium, this fee varies between title companies. |
| Property taxes | Prorated | Texas taxes are paid in arrears (this year’s bill is not delinquent until February 1 of next year), so the seller usually credits the buyer for this year’s taxes up to the closing date. |
| Mortgage and lien payoff | Seller | Includes any home equity loans, tax liens or judgments. |
| Survey | Negotiated | An existing survey may be reused with a T-47 affidavit or T-47.1 declaration, if the title company and the buyer’s lender accept it. |
| HOA resale certificate and transfer fees | Negotiated | Set by the association. Texas law caps the resale certificate fee at $375. |
| Repairs or credits | Negotiated | Usually agreed after the buyer’s inspection. |
| Home warranty | Optional | Sometimes offered to buyers. |
The costs that aren’t on the statement
- Holding costs: mortgage, taxes, insurance, utilities and HOA dues for every month until closing.
- Preparation: cleaning, paint, minor repairs, staging, moving.
If your home is in a MUD or PID
Some subdivisions sit inside a municipal utility district (MUD) or a public improvement district (PID). Each adds its own charges, and each has its own written notice that Texas requires a seller to give the buyer, under different laws, so a home in both needs both. A missing MUD notice can give the buyer a right to end the contract, and a missing PID notice can let the buyer sue for damages after closing. Check your tax statement or ask your agent or title company early, so it doesn’t hold up closing.
A quick way to estimate
Ask your agent for a seller’s net sheet once you have a realistic price. It lists every line above with real numbers for your home. Ask a cash buyer which of these costs they cover, so you compare the two fairly. Our cash offer or listing guide has a worksheet.
Sources
- No state income tax and no tax on transferring title to real property: Texas Constitution, Article VIII, §24-a (personal income tax) and §29 (real property transfer tax).
- Federal home sale gain exclusion ($250,000, or $500,000 for married couples filing jointly; two-of-five-year ownership and use tests): Internal Revenue Service, Publication 523, Selling Your Home.
- Who pays what in the standard contract (owner’s policy box in paragraph 6A, survey with T-47 affidavit or T-47.1 declaration in 6C, seller pays lien releases and half the escrow fee in 12A, brokerage compensation “not set by law and is fully negotiable” in 12B, proration of current-year taxes through the closing date in 13): Texas Real Estate Commission, One to Four Family Residential Contract (Resale), TREC No. 20-19.
- Buyer’s agent pay set in the buyer’s written agreement since August 17, 2024, and negotiable: National Association of Realtors, Consumer guide to written buyer agreements.
- Title insurance premiums set by the state and the same at every title company, while escrow fees differ: Texas Department of Insurance, Title insurance FAQs and Title insurance.
- T-47 Residential Real Property Affidavit: Texas Department of Insurance, Form T-47.
- Taxes delinquent on February 1 of the following year: Texas Tax Code §31.02.
- HOA resale certificate, delivery time and $375 fee cap: Texas Property Code §207.003.
- MUD notice and the buyer’s right to terminate: Texas Water Code §49.452; Texas Real Estate Commission, Notice to Purchaser of Special Taxing or Assessment District.
- PID notice and the buyer’s damages claim: Texas Property Code §5.014 and §5.0145.