How to Use the First-Time Homebuyer Tax Calculator
When you purchase a home in the US, state and local governments may charge a real estate transfer tax. Rates and rules vary widely — some states like Texas and Wyoming have no transfer tax, while others like New York can charge over 4%. Some states reduce or exempt transfer taxes for first-time buyers.
Enter the purchase price, applicable state and county transfer tax rates, and any first-time buyer exemption to calculate your net transfer tax due at closing. Check your state and county websites for current rates and exemption programs.
Frequently Asked Questions
It depends on state law and negotiation. In many states, the seller pays. In others, the buyer pays. Some states split it. Your purchase contract and closing disclosure will specify who is responsible.
States with no real estate transfer tax include Texas, New Mexico, Wyoming, Alaska, Idaho, Indiana, Louisiana, Mississippi, Missouri, and Montana. Always verify with your title company or closing attorney.
Besides transfer taxes, expect lender origination fees (0.5%–1%), appraisal ($300–$500), title insurance ($500–$1,500+), homeowners insurance, prepaid property taxes and interest, and recording fees. Total closing costs typically run 2%–5% of the purchase price.