Selling a home in Dallas and wondering if a transfer tax will take a bite out of your proceeds? Good news. Texas does not charge a real estate transfer tax, so you will not see a percentage-based tax on your sales price at closing. You still have closing costs to plan for, though, and knowing them early helps you price smart and avoid surprises.
In this guide, you’ll learn what you typically pay as a seller in Dallas, how those costs are negotiated, and where to get exact numbers for your property. Let’s dive in.
No transfer tax in Texas
You will not pay a state or city transfer tax when you sell a home in Dallas. Texas does not impose a real estate transfer or documentary tax on property sales, and cities and counties generally do not add a separate local transfer tax.
You may still see administrative items at closing, such as county recording fees or HOA-related charges. These are not transfer taxes. They are routine costs to record documents and update ownership.
Recording fees vs. taxes
Dallas County charges recording and filing fees to record the deed and other documents. These are modest, flat fees set by schedule. They are not based on the sale price and are not a transfer tax. Title companies typically collect and pay these at closing.
If your property is in a special district, such as a PID or MUD, you might see prorated assessments or payoff requirements tied to the parcel. Again, these are not transfer taxes, but they do affect your bottom line and timeline.
What sellers typically pay in Dallas
While every contract is negotiable, these are the common seller-side items in Dallas:
Broker commission
- Sellers customarily pay commission to the listing broker, which may be shared with a cooperating buyer broker. Exact rates are negotiated.
Owner’s title insurance policy
- In Texas, it is common for the seller to pay for the buyer’s owner’s title policy. Premiums are regulated by the Texas Department of Insurance and vary by price. The buyer usually pays any lender’s policy.
Title and escrow fees
- Settlement, title exam, document prep, and courier fees may be split or assigned to a side by contract.
Dallas County recording fees
- Fees to record the deed and release your mortgage. Amounts are generally flat by instrument and page.
Mortgage payoff
- Your loan balance, accrued interest to the payoff date, and any lender processing or reconveyance fees.
Prorations
- Property taxes, HOA dues, and utilities are prorated through the closing date so each party pays their share.
Repairs or credits
- Agreed repairs or negotiated credits from inspection findings or lender requirements.
Home warranty (optional)
- Sometimes paid by the seller as a concession when requested by the buyer.
Survey costs
- If a new survey is required and you cannot provide an acceptable existing one, payment is negotiable.
HOA and condo charges
- Transfer, resale certificate, and estoppel fees can apply. These are association administrative fees, not taxes.
Who pays what is negotiable
Custom matters in Texas, but the contract controls. Two big allocation points to decide early:
Owner’s title policy
- It is customary for sellers to pay this in Dallas, but you can negotiate otherwise. Confirm the selection in your offer.
Escrow or closing fee
- Some deals split it. Others assign it to one side. Ask your title company for a breakdown so you can negotiate from facts.
Other negotiables include repair credits vs. doing repairs, home warranty coverage, and survey responsibility. Your closing date also affects tax prorations and can change your net by hundreds or thousands of dollars.
How to estimate your net proceeds
Work with your agent and title company early to build a clear picture of your net. A simple equation helps:
Sale price minus the following typical items:
- Broker commission
- Mortgage payoff and any lender fees
- Owner’s title policy and title settlement fees (as applicable)
- Dallas County recording and release fees
- Prorated property taxes and HOA dues
- Agreed repairs or buyer credits
- HOA transfer or resale certificate fees
Ask for a seller net sheet before you list. Update it when you receive an offer so you can compare terms apples to apples.
Where exact numbers come from
Because rates and schedules change, pull current figures from local sources:
Title company estimate
- Premium for the owner’s title policy, plus settlement and recording estimates.
Lender payoff statement
- Exact mortgage payoff, daily interest, and any release fees.
Dallas County Clerk
- Current recording fee schedule for deeds and releases.
Dallas County Tax Office
- Current tax amounts and how prorations will be calculated for your closing date.
HOA or condo management
- Transfer fees, resale certificate cost, estoppel timing, and any outstanding assessments.
Special districts
- For homes in a PID, MUD, or similar, request payoff amounts and any transfer-related admin fees.
Taxes that are not transfer taxes
You may have federal income tax considerations on your sale proceeds. The IRS allows many homeowners to exclude up to 250,000 dollars in gain if single or 500,000 dollars if married filing jointly, if you meet eligibility rules. Texas does not have a personal income tax, so there is no separate state capital gains tax for most sellers. You might also receive a 1099-S reporting gross proceeds. Speak with your CPA to confirm your situation.
Practical steps before you list
Use this quick plan to avoid last-minute surprises:
- Ask your agent for a detailed seller net sheet based on your target price.
- Request your mortgage payoff statement now so you know the exact balance and fees.
- Get a title quote and preliminary settlement estimate from a Dallas title company.
- Check HOA or condo transfer, resale certificate, and estoppel fees and turnaround times.
- Confirm if your home is in a special district and request payoff or assessment details.
- Review your survey. If it is older or inaccurate, plan for a new one.
- Discuss repairs vs. credits. A small pre-list fix can keep your net higher.
- Talk with your tax advisor about eligibility for the home sale exclusion.
Common pitfalls to watch
- Assuming there are no costs because there is no transfer tax. You still have commissions, title, recording, and prorations.
- Waiting on your lender payoff. Delays can push your closing or change your net.
- Overlooking HOA or district fees. These can affect timing and proceeds.
- Forgetting property tax timing. Your closing date changes how much you owe in prorations.
Bottom line for Dallas sellers
You will not pay a transfer tax when you sell in Dallas. Your main costs are commission, title insurance if you agree to provide the owner’s policy, recording and settlement fees, prorations, and any negotiated repairs or credits. With an early net sheet and a solid plan, you can price confidently and protect your proceeds.
Ready to see your numbers and timeline? Request Your Free Home Valuation with Kramer Real Estate, and we will prepare a tailored seller net estimate and game plan for your Dallas sale.
FAQs
Do Dallas home sellers pay a transfer tax?
- No. Texas does not impose a real estate transfer or documentary tax, and Dallas does not add a city transfer tax.
What closing costs do Dallas sellers usually pay?
- Common items include broker commission, the buyer’s owner’s title policy by Texas custom, title and escrow fees, Dallas County recording fees, mortgage payoff, prorated taxes and HOA, and any agreed repairs or credits.
Are county recording fees the same as a transfer tax?
- No. Recording fees are administrative charges to file documents with the Dallas County Clerk. They are generally flat amounts, not based on your sale price.
Who pays for the owner’s title insurance policy in Dallas?
- It is customary for the seller to pay the buyer’s owner’s policy in Texas, but it is negotiable and should be spelled out in your contract.
How do I get exact closing cost amounts for my sale?
- Ask a Dallas title company for a fee quote and preliminary settlement estimate, request your lender payoff, check the Dallas County Clerk fee schedule, and confirm HOA or special district fees.
Will I owe capital gains tax when I sell my Dallas home?
- It depends on your gain and eligibility for the federal home sale exclusion. Many homeowners qualify for 250,000 or 500,000 dollars of excluded gain. Speak with your tax advisor for specifics.
