Closing Costs in Tennessee
By Ziv Shay | Updated April 2026
Calculate exactly what buyers and sellers pay in closing costs in Tennessee. Updated for 2026 with state-specific transfer taxes, fees, and requirements.
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Closing Costs in Tennessee: What You Need to Know
Tennessee Transfer Tax
Tennessee charges a transfer tax of 0.370% on real estate transactions. On a $350,000 home, this amounts to $1,295, which is typically split between the buyer and seller.
Average Closing Costs in Tennessee
The average buyer closing costs in Tennessee are approximately 2.41% of the home purchase price. On a median-priced home of $350,000, buyers can expect to pay around $8,435 in closing costs, plus their down payment. This is near or below the national average, making Tennessee relatively affordable for real estate transactions.
Attorney Requirements
Tennessee does not require an attorney at real estate closings. Transactions are typically handled by title companies or escrow agents. While not required, many buyers and sellers in Tennessee still choose to hire an attorney for added legal protection, especially in complex transactions.
Tips for Reducing Closing Costs in Tennessee
- Tennessee's transfer tax rate is 0.370% of the sale price, typically split between buyer and seller.
- Tennessee does not require an attorney at closing. You can use a title company or escrow agent, which may save on fees.
- Tennessee's average closing costs of 2.41% of the home price are near the national average. Compare at least 3 lender quotes.
- Close at the end of the month to minimize prepaid interest charges. You only pay interest from closing day through month end.
Frequently Asked Questions About Tennessee Closing Costs
Average closing costs for buyers in Tennessee are approximately 2.41% of the home purchase price. On a $350,000 home, that's about $8,435 in buyer closing costs. Seller costs are higher, typically 6-10% of the sale price due to agent commissions.
No, Tennessee does not require an attorney at closing. You can use a title company or escrow agent to handle the closing process. However, hiring an attorney is still recommended for complex transactions.
Tennessee's transfer tax rate is 0.370% of the sale price. On a $350,000 home, that's $1,295 total, typically split between buyer and seller. Some counties may have additional local transfer taxes.
To reduce closing costs in Tennessee: shop at least 3 lenders and compare Loan Estimates, negotiate seller credits (especially in a buyer's market), compare title insurance quotes from multiple providers, close at the end of the month to minimize prepaid interest, and ask about lender credits in exchange for a slightly higher interest rate.
Compare Tennessee With Neighboring States
| State | Transfer Tax | Avg Closing % | Attorney Req. |
|---|---|---|---|
| Tennessee | 0.37% | 2.41% | No |
| Kentucky | 0.10% | 2.22% | Yes |
| Virginia | 0.25% | 2.31% | No |
| North Carolina | 0.20% | 2.28% | Yes |
| Georgia | 0.10% | 2.34% | Yes |
| Alabama | 0.10% | 2.01% | No |
| Mississippi | 0.00% | 2.15% | Yes |
