Tennessee Closing Costs for Buyers: How Much You'll Pay
In Tennessee, the state transfer tax is 0.37% (about $1,451 on a $392,100 home), and an owner's title policy runs about $2,250 plus $50 for the lender's policy. Figures below come from Tennessee statutes, the state's revenue and insurance regulators and filed title rate cards, read on September 11, 2026.
Transfer tax in Tennessee
| Jurisdiction | Rate | |
|---|---|---|
| Tennessee (state) | Realty transfer tax (part of the state Recordation Tax) is $0.37 per $100 of consideration or value, whichever is greater ($3.70 per $1,000), under Tenn. Code Ann. § 67-4-409 | source |
Tennessee's 'recordation tax' is actually two separate state-level taxes collected by the county Register of Deeds: the realty transfer tax ($0.37/$100 of price/value, paid on deeds) and a separate mortgage/indebtedness tax ($0.115/$100 of the loan amount, minus the first $2,000, paid on deeds of trust). There is no additional county or municipal transfer tax add-on statewide.
Who pays: Statutory default is the grantee/transferee (buyer), per the Tennessee Department of Revenue's own description of the tax; local custom in many markets shifts it so the seller effectively covers it or the parties split closing costs, always confirm in the purchase contract. Source
Worked example: On a $392,100 home, the realty transfer tax at $0.37 per $100 of value is about $1,451 (392,100 x 0.0037), paid at the Register of Deeds when the deed is recorded.
How much is title insurance in Tennessee?
On a $392,100 home in Tennessee, an owner's title policy costs about $2,250 and the lender's policy about $50 when both are issued together (the simultaneous-issue discount). The buyer customarily pays for the owner's policy and the lender's policy. Tennessee 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 Stewart Title Guaranty Company, Tennessee Schedule of Charges and Forms, Schedule G, Davidson County (filed rate manual, eff. 2/4/2022).
Who pays the owner's policy: buyer customarily purchases and pays for the owner's policy in Tennessee (the seller has no statutory obligation; this is standard local practice, not a statute) Source
Tennessee title insurance is a filed-competitive state: the Dept. of Commerce & Insurance requires underwriters to file their own rate manuals (Rule 0780-1-12), but rates are not fixed uniformly across the industry as in TX/FL.
Tennessee-specific buyer costs on a $392,100 home
These are the line items set by Tennessee law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.
| Transfer or recordation tax (buyer share) | $1,451 |
|---|---|
| Owner's title policy | $2,250 |
| Lender's title policy | $50 |
| Deed recording | $12 |
| Mortgage recording | $12 |
| State-set items, total | $3,775 |
Do you need a closing attorney in Tennessee?
Not required. Tennessee does not require a licensed attorney to conduct a residential closing; non-attorney closing/settlement agents may prepare standard closing documents. However, rendering a title opinion (as opposed to obtaining title insurance) is considered the practice of law and must be done by a licensed Tennessee attorney, per Tenn. Code Ann. § 23-3-103 (unauthorized practice of law) and Tennessee Attorney General Opinion No. 07-88. Source
Recording fees
Recording the deed costs $12 and the mortgage $12 at the Davidson County (Nashville) Register of Deeds. Fee schedule
Other Tennessee specifics
- State mortgage/indebtedness tax. Separate from the realty transfer tax, Tennessee charges a mortgage tax of $1.15 per $1,000 of the loan amount (first $2,000 of indebtedness exempt), collected by the Register of Deeds when the deed of trust is recorded. On a loan near the $392,100 median price this runs roughly $448 (392,100 - 2,000 = 390,100 x 0.00115), paid by the borrower/buyer. Source
- Recording data-processing and per-page fees. Davidson County charges $5 per page for deeds and deeds of trust with a $10 minimum plus a $2 data-processing fee, so the flat $12 figure above assumes a short (1-2 page) instrument; longer deeds of trust with riders/exhibits will cost more. Source
How much are closing costs in Tennessee?
For a buyer, closing costs usually run 2% to 5% of the purchase price. On Tennessee's median-priced home (about $392,100), that is roughly $7,842 to $19,605, 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 Tennessee transfer tax, plus prepaid property taxes and homeowners insurance.
Why Tennessee 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.
Frequently asked questions
How much is title insurance in Tennessee?
About $2,250 for an owner's policy on a $392,100 home, plus about $50 for the lender's policy when both are issued together. Rates vary by insurer, so get two quotes.
Who pays closing costs in Tennessee?
Transfer tax: Statutory default is the grantee/transferee (buyer), per the Tennessee Department of Revenue's own description of the tax; local custom in many markets shifts it so the seller effectively covers it or the parties split closing costs, always confirm in the purchase contract. The buyer customarily pays for the owner's policy and 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 is the transfer tax in Tennessee?
Realty transfer tax (part of the state Recordation Tax) is $0.37 per $100 of consideration or value, whichever is greater ($3.70 per $1,000), under Tenn. Code Ann. § 67-4-409. On a $392,100 home that is about $1,451.
Do you need an attorney to close on a house in Tennessee?
No. Tennessee does not require a licensed attorney to conduct a residential closing; non-attorney closing/settlement agents may prepare standard closing documents. However, rendering a title opinion (as opposed to obtaining title insurance) is considered the practice of law and must be done by a licensed Tennessee attorney, per Tenn. Code Ann. § 23-3-103 (unauthorized practice of law) and Tennessee Attorney General Opinion No. 07-88.
How much are closing costs in Tennessee?
Buyer closing costs in Tennessee typically run 2% to 5% of the purchase price. On Tennessee's median-priced home (about $392,100) that is roughly $7,842 to $19,605, on top of your down payment.
What do closing costs include in Tennessee?
Lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Tennessee transfer tax, plus prepaid property taxes and homeowners insurance.
Can a buyer rebate offset closing costs in Tennessee?
Tennessee does not permit buyer commission rebates, so you cannot use one to offset closing costs here. Comparing lenders and shopping title and settlement services is the main way to save.
Sources
- Tennessee transfer tax statute
- Who pays the transfer tax
- Stewart Title Guaranty Company, Tennessee Schedule of Charges and Forms, Schedule G, Davidson County (filed rate manual, eff. 2/4/2022)
- Who pays the owner's title policy
- Tennessee closing attorney rule
- Davidson County (Nashville) Register of Deeds recording fees
- Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price
Tennessee figures last verified against official sources on September 11, 2026.
Tennessee title insurance at every purchase price, with a calculator →
Tennessee 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.
See closing costs in all states