Closing Costs and Property Taxes in Houston, TX: A Clear Breakdown for Buyers and Sellers
On a $370,000 median-priced home in Houston, buyers typically pay 2% to 5% in closing costs (roughly $7,400 to $18,500), while sellers cover agent commissions (5% to 6% or $18,500 to $22,200) plus title and transfer fees. Texas property taxes stack county, city, school district, and special district rates, but the homestead exemption removes $40,000 from assessed value for school taxes and caps annual appraisal increases at 10%.
Frequently Asked Questions
How much are closing costs for a buyer on a $370,000 home in Houston?
Buyers typically pay 2% to 5% of the purchase price, which is $7,400 to $18,500, including loan fees, title insurance, and prepaid taxes.
How much do sellers pay in closing costs in Houston?
Sellers pay the agent commission (5% to 6% or $18,500 to $22,200 on a $370,000 home), plus title policy, transfer taxes, and any negotiated credits.
How does the Texas homestead exemption work in Houston?
It removes $40,000 from your home's appraised value for school district taxes and caps annual appraisal increases at 10%. File with HCAD by April 30 after your purchase.
What is the property tax rate in Houston, Texas?
Rates in Harris County generally range from 1.8% to 2.8% of assessed value annually, stacking county, city, school district, and special district levies.