TX · #2 by population

Buying a home in Texas

Costs and rules that are specific to Texas. Main city: Dallas.

In short

Texas has no real estate transfer tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is a community property state. Deadline to appeal a property tax assessment: by May 15 or 30 days after the notice of appraised value was delivered, whichever is later.

Calculate for Texas

If you buy

Texas state transfer tax

Texas has no real estate transfer tax. Change the price: the amount is recalculated instantly.

Price$313,200
State transfer tax$0
Share of the price—

Default price: the Texas median value of owner-occupied homes, $313,200 (Census ACS 2024). Rule: No transfer tax exists. Buyers pay county recording fees and a state-set title insurance premium. Who pays: No transfer tax to assign. Recording fees and the title insurance premium appear on the closing statement. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Texas transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Texas state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Texas in short

Is there a real estate transfer tax in Texas?

Texas has no real estate transfer tax. Article VIII, Section 29 of the Texas Constitution, added November 3, 2015, says no law enacted after January 1, 2016 may impose a transfer tax on a transaction that conveys fee simple title to real property.

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What closing costs does Texas law set?

Texas has no official typical closing-cost total. It charges no transfer tax, the owner's title policy on a $400,000 home costs $2,262 at Texas Department of Insurance rates effective March 1, 2026, and a simultaneous loan policy costs $100.

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How is property tax calculated in Texas?

Texas has no state property tax. Local units apply their rates to appraised value minus exemptions, and since the 2025 tax year school districts must exempt $140,000 of a homestead's value.

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What is the deadline to appeal a property tax assessment in Texas?

In Texas, file a written notice of protest with your county Appraisal Review Board by May 15 or within 30 days after your notice of appraised value was delivered, whichever is later.

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Do you need a real estate attorney to close in Texas?

No. No Texas statute requires an attorney to close a home sale. A title insurance agent and its licensed escrow officer, regulated by the Texas Department of Insurance, can handle the closing, and TDI says you may also have an attorney attend.

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What must a home seller disclose in Texas?

A Texas seller of a home with no more than one dwelling unit must give the buyer a signed condition notice, including flood history and floodplain status, on or before the effective date of the contract (Tex. Prop. Code 5.008).

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How does foreclosure work in Texas?

Most Texas foreclosures happen out of court under the deed of trust's power of sale: the borrower gets at least 20 days to cure, then a notice of sale at least 21 days before an auction held on the first Tuesday of the month.

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What first-time home buyer programs does Texas offer?

In Texas, the Texas Department of Housing and Community Affairs (TDHCA) and the Texas State Affordable Housing Corporation (TSAHC) both give 2% to 5% of the loan amount for the down payment, as a grant or a 0% loan often forgiven after 3 years.

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Is Texas a community property state?

Texas is a community property state: property either spouse has during marriage is presumed community property (Family Code 3.003), and neither spouse may sell, convey or encumber the homestead without the other's joinder (Family Code 5.001).

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How are title insurance rates set in Texas?

In Texas, the Commissioner of Insurance sets title insurance premiums and every title company must charge the same rate (Insurance Code 2703.151). Under TDI rates effective March 1, 2026, an owner's policy costs $1,768 at $300,000 and $2,262 at $400,000.

Full Texas guide

Which natural hazards affect home insurance in Texas?

Texas gets more tornadoes than any other state, according to the Texas Department of Insurance. On the coast, windstorm coverage comes from a separate policy, often from TWIA, in 14 coastal counties plus part of Harris County.

Full Texas guide

How much tax when you sell a home in Texas?

The federal rule is the same in Texas as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Texas income tax on the gain is not computed here.

Capital gains on a home sale

Texas guides

Dallas

Buying a home in Dallas, Texas

Professionals in Texas

All states · Federal guides