Texas and Real Estate Transfer Taxes

No. Texas does not have a real estate transfer tax, and the Texas Constitution prohibits creating one. Article VIII, Section 29 says that after January 1, 2016, no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property (Texas Constitution Art. VIII, Sec. 29). You will still pay recording fees, title insurance and other closing costs, but there is no tax figured as a percentage of the price for transferring the deed.

What the constitutional ban covers

Section 29 bars new laws imposing a transfer tax on a conveyance of fee simple title. It also lists what it does not prohibit, including a general business tax measured by business activity, a tax on mineral production, a tax on the issuance of title insurance, and changes to the rate of an existing tax. For a homebuyer, the practical result is simple: no state or local deed transfer tax line on your Texas closing.

What you pay instead

A Texas closing still has real costs. Common lines on a purchase:

• Recording fees. The county clerk charges fees to record the deed and the deed of trust. These are clerk fees based on the document, not a tax on the price. In Fort Worth, recording is with the Tarrant County Clerk.
• Title insurance. Premiums are set by the Texas Department of Insurance. See title insurance in Texas.
• Escrow and closing fees charged by the title company.
• Survey or a T-47 affidavit, depending on the contract.
• Lender charges, such as origination or underwriting fees and any points you choose.
• Prepaid items and escrow deposits for property taxes and homeowners insurance.

Who pays which line is set by the TREC contract and negotiation (TREC No. 20-19). See buyer and seller closing costs.

Where transfer taxes show up on federal forms

The federal Loan Estimate and Closing Disclosure have a "Taxes and Other Government Fees" section that includes recording fees and transfer taxes (12 CFR 1026.37(g)(1)). On a Texas purchase, the transfer tax line should be blank or zero. If you see a charge labeled as a transfer tax, ask the title company what it is.

Property taxes are a different story

Texas has no state property tax, but local taxing units, such as the county, city, school district and special districts, levy property taxes, and they are a major part of a Texas housing payment (Texas Comptroller). Not having a transfer tax does not make a Texas home cheap to own. See Texas property taxes.

Fictional example

Fictional example: a buyer relocating from a state with a deed stamp tax looks for a line on the Fort Worth Closing Disclosure equal to a percentage of the price. It is not there. The recording line is the clerk's fee. The title policy line is the state-set premium. The buyer's real cash need is the total cash to close, which includes prepaid taxes and insurance that the buyer had not budgeted for.

Common mistakes

• Assuming a Texas closing is nearly free because there is no transfer tax.
• Comparing a Texas title premium to another state's transfer tax. They are different systems.
• Forgetting that the escrow deposit for taxes and insurance can be one of the largest lines.

To estimate your total, see figuring cash to close.

Next step

If you are moving to Fort Worth from another state, I can build a cash-to-close estimate with Texas costs so there are no surprises. Book a call, or start an application.

Related questions

• Buyer and seller closing costs
• How does title insurance work in Texas?
• Figuring cash to close
• Texas property taxes

Sources

Links checked Oct 21, 2026.

• Texas Constitution, Art. VIII, Sec. 29 (transfer tax on conveyance of real property prohibited) (current text): https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8.htm
• CFPB Regulation Z, 12 CFR 1026.37 Content of the Loan Estimate (current text): https://www.consumerfinance.gov/rules-policy/regulations/1026/37/
• TREC One to Four Family Residential Contract (Resale), TREC No. 20-19, Paragraphs 5, 13 and 23 (form dated May 4, 2026): https://www.trec.texas.gov/forms/one-four-family-residential-contract-resale
• Texas Comptroller, Property Tax Basics (checked Oct 21, 2026): https://comptroller.texas.gov/taxes/property-tax/basics.php

About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.

Equal Housing Opportunity.

Last reviewed: Oct 2026

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