Costs of Selling Land in Texas
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Texas at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| Transfer tax | None | n/a |
| Owner's title policy premium | Rate set by the Texas Department of Insurance, based on the policy amount | Set by the contract |
| Recording fees | Set by the county recorder; charged per document or page | Buyer usually records the deed; seller pays to record lien releases |
| Title search and owner's title insurance | Priced by the title company or attorney; varies with sale price | Set by the contract and local custom |
| Prorated property taxes | Your share of the current year's tax, up to the closing date | Seller for the days owned; unpaid back taxes are paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% of a long-term gain (land held over 1 year); short-term gains taxed as ordinary income; 3.8% NIIT may apply at higher incomes | Seller, on the gain only |
| Texas income tax on the gain | None; Texas has no personal income tax | n/a |
Example: Seller Costs on a $25,000 Land Sale
- Transfer tax
- $0
- Total seller transfer cost
- $0
Texas has no transfer tax, so the seller's transfer cost is $0. Title premium, escrow fee, recording and prorated taxes depend on the contract and are not included.
Selling Costs in Texas: What to Know
Texas has no real estate transfer tax and no state income tax. The main seller costs are title, closing and the seller's share of the year's property tax. This page lists each cost and who usually pays it.
Most of these costs come out of your proceeds at closing, so you see them on the settlement statement, not as bills. The one cost that comes later is income tax on any gain, which you report on your return. This page is general information, not legal or tax advice. Rates change, so confirm them with the office named here or a tax professional before you rely on them.
Texas has no transfer tax
Texas does not charge a state or local tax on the transfer of land. Your county clerk charges only recording fees, which are set by law.
Title insurance is the larger closing cost in Texas. The Texas Department of Insurance sets title insurance premium rates, so every title company charges the same premium for the same policy amount (TDI title insurance).
Who pays what in Texas
In Texas the contract says who buys the owner's title policy, and practice varies by region. The escrow fee is often split. The buyer usually pays to record the deed. The seller pays the seller's share of the year's property tax and any liens or back taxes.
- Seller: the state transfer tax where the law puts it on the seller, any agent commission, payoff of liens and back taxes, and the seller's share of the year's property tax.
- Buyer: recording the new deed, any lender fees, and the costs the contract assigns to the buyer.
- Either side: title insurance, settlement or escrow fees, and survey costs, as the contract says.
Attorney or title company: who closes a land sale in Texas
Most Texas land sales close at a title company, which acts as escrow agent. It searches title, issues the title policy, records the deed, pays off liens and back taxes, and pays you. You can hire a Texas lawyer to prepare or review the deed, which helps with heirs, estates or title problems.
Capital gains tax when you sell land in Texas
Federal tax applies to the gain, not to the sale price. The gain is roughly the sale price minus what you paid for the land, minus selling costs and the cost of lasting improvements. If you held the land for more than one year, the gain is long term. If you held it one year or less, it is short term and is taxed like wages (IRS Topic 409).
Long-term gains get federal rates of 0, 15 or 20 percent, depending on your taxable income. For 2025, a single filer paid 0 percent on long-term gains if taxable income was $48,350 or less. Higher earners may also owe the 3.8 percent net investment income tax when modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers (IRS Topic 559).
Texas has no personal income tax, so there is no state tax on your gain. Federal tax still applies.
Recording, title and property tax at closing
Recording fees are set by law and charged by the county office that records deeds. The buyer usually pays to record the new deed. If a mortgage or lien is paid off at closing, the release is recorded too, and the seller usually pays for that.
A title search shows who owns the land and what liens or back taxes sit on it. Owner's title insurance protects the buyer against title problems found later. The price comes from the title company or attorney, and the contract says who pays.
Property tax is split by date. You pay for the part of the year you owned the land, and the buyer pays for the rest. Any back taxes are paid from your proceeds before you get the balance.
How selling to a cash buyer changes the costs
A cash sale has no lender, so there are no loan fees, no appraisal and no financing delays. When you sell to EasyLotBuyer, we pay the closing costs, and you pay no fees or commissions. We can close in as few as 7 days, and we send a cash offer within 24 hours.
We also buy land with back taxes, liens, title problems or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Tax on your gain is still yours to report, so keep your closing statement for your return. Get a cash offer for your Texas land.
Sources
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Texas
Does Texas have a real estate transfer tax?
No. Texas does not tax the transfer of land. You pay recording fees and closing costs only.
Why is title insurance the same price at every Texas title company?
The Texas Department of Insurance sets the premium rates. Other fees, such as escrow fees, can differ.
What closing costs does a seller pay in Texas?
Usually no transfer tax; the main costs are title and escrow fees as the contract assigns them, plus payoff of any liens or back taxes and the seller's share of the year's property tax. Title and closing fees are split as the contract says.
Do I owe capital gains tax when I sell land in Texas?
Only federal tax. Texas has no personal income tax, so the state does not tax your gain.
Who pays closing costs when I sell land for cash?
It depends on the contract. When you sell to EasyLotBuyer, we pay the closing costs and you pay no fees or commissions. Back taxes, if any, are paid from the sale at closing.
Are back taxes paid at closing?
Yes. The closing agent pays delinquent property taxes and recorded liens from the sale proceeds, and you receive the balance. You can sell land that has back taxes.