Indiana Closing Costs for Buyers: How Much You'll Pay
In Indiana, Indiana has no real estate transfer tax, and an owner's title policy runs about $907 plus $120 for the lender's policy. Figures below come from Indiana statutes, the state's revenue and insurance regulators and filed title rate cards, read on September 11, 2026.
Transfer tax in Indiana: none
Indiana does not charge a tax on the transfer of real estate, which is the main reason its closing costs sit below the national picture. Indiana has no state, county, or municipal real estate transfer tax. Indiana Code Title 6 (Taxation) contains no real estate transfer tax article (Indiana's old inheritance/transfer tax articles under Title 6 are marked 'Repealed'), and the county recorder statute (IC 36-2-7-10) governs only flat per-document recording fees, not a value-based transfer tax. Source
You still pay recording fees: $25 to record the deed and $55 for the mortgage at the Statewide uniform fee under Indiana Code 36-2-7-10 (applies identically in every Indiana county, including Marion County/Indianapolis, the state's largest county). Fee schedule
How much is title insurance in Indiana?
On a $273,200 home in Indiana, an owner's title policy costs about $907 and the lender's policy about $120 when both are issued together (the simultaneous-issue discount). The seller customarily pays for the owner's policy; the buyer pays the lender's policy. Indiana is a filed-competitive state: each title insurer files its own rates, so premiums differ by company and it pays to get two quotes. Premiums computed from First American Title Fee Calculator (filed rates), Marion County, Indiana, read September 11, 2026.
Who pays the owner's policy: seller (First American's calculator default allocation for Marion County; negotiable by contract) Source
Owner's policy on the full $273,200 price and the lender's policy on an 80% loan ($218,560), quoted together so the simultaneous-issue rate applies; First American filed rates for Marion County.
Indiana-specific buyer costs on a $273,200 home
These are the line items set by Indiana law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.
| Lender's title policy | $120 |
|---|---|
| Deed recording | $25 |
| Mortgage recording | $55 |
| State-set items, total | $200 |
How much are closing costs in Indiana?
For a buyer, closing costs usually run 2% to 5% of the purchase price. On Indiana's median-priced home (about $273,200), that is roughly $5,464 to $13,660, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.
What closing costs include
Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Indiana transfer tax, plus prepaid property taxes and homeowners insurance.
Why Indiana closing costs vary
The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter.
How a rebate offsets Indiana closing costs
Buyer commission rebates are legal in Indiana. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $273,200 home, a 2% rebate is about $5,464, often enough to cover much of the closing bill.
Frequently asked questions
How much is title insurance in Indiana?
About $907 for an owner's policy on a $273,200 home, plus about $120 for the lender's policy when both are issued together. Rates vary by insurer, so get two quotes.
Who pays closing costs in Indiana?
There is no transfer tax in Indiana. The seller customarily pays for the owner's policy; the buyer pays the lender's policy, plus lender fees, appraisal and prepaid taxes and insurance. Sellers often cover part of the buyer's costs through a negotiated concession.
How much are closing costs in Indiana?
Buyer closing costs in Indiana typically run 2% to 5% of the purchase price. On Indiana's median-priced home (about $273,200) that is roughly $5,464 to $13,660, on top of your down payment.
What do closing costs include in Indiana?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Indiana transfer tax, plus prepaid property taxes and homeowners insurance.
Can a buyer rebate offset closing costs in Indiana?
Often yes. In Indiana, buyer commission rebates are legal, and a rebate can be applied as a credit toward your closing costs at the settlement table.
Sources
- Indiana transfer tax statute
- First American Title Fee Calculator (filed rates), Marion County, Indiana, read September 11, 2026
- Statewide uniform fee under Indiana Code 36-2-7-10 (applies identically in every Indiana county, including Marion County/Indianapolis, the state's largest county) recording fees
- Indiana Department of Insurance, Title (title insurance consumer information)
- Indiana Department of Insurance, Title Insurance Rate Comparison Tool
- Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price
Indiana figures last verified against official sources on September 11, 2026.
Indiana transfer tax at every purchase price, who pays and local surcharges →
Read the full buyer closing-costs guide →
Figures are typical 2026 ranges and vary by lender, loan, and location. This is general information, not financial advice; confirm your numbers with your lender and closing agent.
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