If you are buying or selling a home in California and wondering how much closing costs will run, the short answer is: it depends heavily on where in the state you are and which side of the transaction you are on. Buyers typically pay between 2% and 5% of the purchase price in closing costs. Sellers pay considerably more, often 6% to 10% when agent commissions are included.
With California’s median home price projected to reach approximately $905,000 in 2026 according to the California Association of Realtors (C.A.R.), buyers could owe anywhere from $18,000 to $45,000 at the closing table, before their down payment. Understanding exactly what drives those numbers, and what you can do to reduce them, is one of the most important things you can do before you start shopping for a home.
What Are Closing Costs?
Closing costs are the fees and expenses paid at the end of a real estate transaction, separate from your down payment. They cover the services required to legally transfer ownership from seller to buyer and to fund the mortgage loan.
Some closing costs scale with the purchase price, including title insurance, escrow fees, transfer taxes, and loan origination fees. Others are relatively fixed regardless of the loan amount, including the appraisal, underwriting and processing fees, credit report fee, notary fee, and recording fee.
The two biggest variables in California closing costs are property taxes and transfer taxes. Property taxes in California average around 1.0% to 1.3% of the purchase price per year depending on the county, and buyers prepay several months at closing. Transfer taxes vary dramatically depending on the city. Most California counties charge $1.10 per $1,000 of purchase price, but charter cities like San Francisco and Los Angeles charge significantly more.
Buyer closing costs in California
Common lender fees:
- Loan origination fee: 0.5% to 1.0% of the loan amount
- Underwriting/processing fee: $500 to $1,500 (typically fixed)
- Credit report fee: $25 to $75
- Discount points (optional): 1% of loan amount per point purchased
Common third-party and government fees:
- Appraisal: $500 to $900 (higher in the Bay Area)
- Home inspection: $400 to $700
- Title insurance (lender’s policy): $400 to $800
- Owner’s title insurance: varies by county custom (see the “Who Pays?” section below)
- Escrow fee: $1,000 to $2,500, or roughly 0.2% to 0.5% of purchase price
- Recording fees: $100 to $200
- Prepaid property taxes: 2 to 6 months depending on timing
- Prepaid homeowner’s insurance: typically 12 months upfront
- Prepaid interest: depends on closing date within the month
Estimated buyer closing cost ranges at key price points (2026):
| PURCHASE PRICE | LOW ESTIMATE (2%) | MID ESTIMATE (3.5%) | HIGH ESTIMATE (5%) |
|---|---|---|---|
| $600,000 | $12,000 | $21,000 | $30,000 |
| $800,000 | $16,000 | $28,000 | $40,000 |
| $905,000 (state median) | $18,100 | $31,675 | $45,250 |
| $1,200,000 | $24,000 | $42,000 | $60,000 |
| $1,500,000 | $30,000 | $52,500 | $75,000 |
JVM note: Closing early in the month means more prepaid daily interest, which increases your cash-to-close. Closing near the end of the month reduces prepaid interest. For a $900,000 purchase at a 6.5% rate, the difference can be $1,500 or more.
Average Closing Costs for California Sellers in 2026
Sellers in California typically pay the larger share of closing-related fees. Based on current market data, average seller closing costs excluding agent commissions run approximately 2.72% to 2.73% of the sale price. When real estate commissions are added (currently averaging around 5.03% statewide following the August 2024 NAR settlement changes), total seller costs climb to roughly 7% to 8% of the sale price.
Typical seller closing costs in California:
- Owner’s title insurance: approximately 0.18% of sale price (varies by county custom)
- Title and escrow service fees: approximately 0.32% of sale price ($2,400 to $3,500 typically)
- County transfer tax: $1.10 per $1,000 of sale price (all 58 counties)
- City transfer tax: varies widely (see note below)
- Recording fees: approximately $244 on average
- Prorated property taxes for the portion of the year the seller owned the home
- HOA transfer fees (if applicable): $400 to $600
Estimated seller closing costs at key price points (excluding commissions):
| SALE PRICE | APPROX. SELLER CLOSING COSTS (2.73%) |
|---|---|
| $600,000 | $16,380 |
| $800,000 | $21,840 |
| $905,000 (state median) | $24,707 |
| $1,200,000 | $32,760 |
| $1,500,000 | $40,950 |
Important on city transfer taxes: Several California charter cities charge transfer taxes well above the county baseline. Los Angeles charges $4.50 per $1,000 and, under Measure ULA, an additional 4% on sales above $5 million and 5.5% on sales above $10 million. San Francisco charges among the highest rates in the state on higher-value properties. Always confirm city-level transfer taxes with your title company before finalizing your net sheet.
County-by-County Closing Cost Comparison
Closing costs vary significantly across California counties due to differences in median home prices, local transfer taxes, property tax rates, and regional customs around who pays for title insurance and escrow. The table below shows estimated buyer closing costs for each county based on current median home prices and standard 2% to 5% closing cost ranges.
| COUNTY | APPROX. MEDIAN HOME PRICE (2025/2026) | EST. BUYER CLOSING COSTS (2% TO 5%) | PROPERTY TAX RATE (APPROX.) | NOTABLE LOCAL FACTORS |
|---|---|---|---|---|
| Alameda | $1,192,500 | $23,850 to $59,625 | 1.25% | Buyer pays owner's title insurance (NorCal custom); Oakland has additional city transfer tax |
| Contra Costa | $889,000 | $17,780 to $44,450 | 1.23% | Buyer typically pays escrow and title (NorCal custom); county transfer tax at standard $1.10/$1,000 |
| San Francisco | $1,800,000 | $36,000 to $90,000 | ~1.17% | High city transfer tax on upper-tier sales; buyer pays title insurance (NorCal custom); jumbo loan territory |
| Santa Clara | $1,935,250 | $38,705 to $96,763 | ~1.15% | Seller pays owner's title (exception to NorCal custom); high jumbo loan volume; 2026 high-cost conforming limit $1,249,125 |
| Los Angeles | $900,000 to $943,000 | $18,000 to $47,150 | ~1.20% | Seller pays owner's title (SoCal custom); city transfer tax $4.50/$1,000; Measure ULA surcharges on high-end sales |
| Orange | $1,000,000 to $1,200,000 | $20,000 to $60,000 | ~1.10% | Seller pays owner's title (SoCal custom); escrow fees split 50/50; standard county transfer tax |
| San Diego | $900,000 to $950,000 | $18,000 to $47,500 | ~1.10% | Seller pays owner's title (SoCal custom); escrow fees typically split; 2026 conforming limit $1,249,125 |
Data sources: Median home prices from California Association of Realtors and CBS San Francisco (November 2025 C.A.R. report). Property tax rates from county assessor data. Closing cost ranges based on standard 2% to 5% buyer cost methodology. Individual transactions will vary.
Who Pays Closing Costs in California?
Both buyers and sellers pay closing costs in California, but the split is not equal, and it is not the same across the state. Regional customs in Northern and Southern California differ in meaningful ways, particularly around title insurance and escrow fees.
What Buyers Typically Pay
Buyers are generally responsible for all lender-related fees, as those are tied to their loan. This includes the origination fee, underwriting and processing fees, appraisal, credit report fee, and the lender’s title insurance policy.
Buyers also pay prepaid items: the first year of homeowner’s insurance, prepaid property taxes, and prepaid daily interest from the closing date through the end of the month.
What Sellers Typically Pay
Sellers in California typically pay:
- County and city transfer taxes: required statewide and paid by the seller in virtually all transactions
- Recording fees: to officially record the change of ownership
- Prorated property taxes: covering the seller’s portion of the year
- HOA transfer and documentation fees (if applicable)
- Real estate commissions: the largest seller expense by far
The NorCal vs. SoCal Title and Escrow Split
This is where buyers and sellers frequently get confused, especially when relocating from another part of the state.
Northern California custom (Alameda, Contra Costa, San Francisco, Marin, Sonoma, Napa, Solano, and Mendocino counties):
- Buyer pays owner’s title insurance
- Buyer typically pays escrow fees, or escrow fees are split
Southern California custom (Los Angeles, Orange, San Diego, Riverside, San Bernardino, Santa Barbara, San Luis Obispo, and Ventura counties):
- Seller pays owner’s title insurance
- Escrow fees are typically split 50/50 between buyer and seller
Santa Clara County exception:
Despite being in the Bay Area, Santa Clara follows the SoCal pattern. The seller pays owner’s title insurance there.
These are customs, not laws. The California Department of Insurance has confirmed that who pays title insurance premiums is a matter of local practice and the parties are free to negotiate a different allocation in the purchase contract.
JVM tip: The MLS often misreports property zoning AND closing cost customs. Always confirm regional customs with your title company early in the transaction. For buyers in Northern California especially, budgeting for owner’s title insurance is critical because it often ends up on your side of the ledger.
Seller Concessions: Getting the Seller to Help with Your Costs
In a slower market, buyers can negotiate for the seller to contribute toward closing costs. Lenders cap how much a seller can contribute depending on the loan type and down payment:
| LOAN TYPE | MAX SELLER CONTRIBUTION |
|---|---|
| Conventional (less than 10% down) | 3% of purchase price |
| Conventional (10% to 25% down) | 6% of purchase price |
| Conventional (over 25% down) | 9% of purchase price |
| FHA loan | 6% of purchase price |
| VA loan | 4% of purchase price (plus unlimited concessions for non-allowables) |
Seller concessions are reflected in the purchase contract and applied at closing. They do not reduce the sale price for appraisal purposes, but they do reduce your required cash-to-close.
How to Reduce Your Closing Costs in California
Closing costs are not entirely fixed. Here are practical ways to lower your out-of-pocket costs:
Shop for title and escrow services
In California, buyers generally have the right to choose their own title and escrow companies. Comparing providers can save $500 to $1,500.
Negotiate seller concessions
In markets where homes are sitting longer, sellers are more willing to contribute toward buyer closing costs. Even 1% on an $800,000 home is $8,000 toward your fees.
Accept lender credits
You can take a slightly higher interest rate in exchange for a lender credit that offsets closing costs. Run the math carefully: if you plan to stay in the home longer than the break-even period, buying down the rate is usually the better move.
Close near the end of the month
You pay prepaid interest from your closing date through the end of the month. Closing on the 28th instead of the 5th on an $800,000 loan at 6.5% can save over $1,000.
Explore assistance programs
CalHFA’s ZIP program provides 2% to 3% of the loan amount as a zero-interest deferred loan specifically for closing costs, available to qualifying buyers.
Compare Loan Estimates from multiple lenders
Origination fees alone can vary by $2,000 to $5,000 between lenders on the same transaction. You are required to receive a Loan Estimate within three business days of application, so use it to shop.
Closing Costs by Loan Type
The type of loan you use affects both the specific fees you pay and how much the seller is allowed to contribute toward them.
| LOAN TYPE | UNIQUE CLOSING COST CONSIDERATIONS |
|---|---|
| Conventional | Standard fees; no upfront mortgage insurance premium; PMI may apply if under 20% down |
| FHA | Requires upfront MIP of 1.75% of loan amount (can be financed); slightly higher appraisal requirements |
| VA | Requires VA funding fee (0.5% to 3.3% depending on use and down payment); lender cannot charge origination fee exceeding 1%; no PMI |
| Jumbo | Higher lender fees typical; appraisal may require two independent reports; no standard conforming guidelines |
For FHA loans in California, the upfront MIP on a $700,000 loan adds approximately $12,250 to the loan balance (or to your cash-to-close if not financed). This is a meaningful cost many buyers overlook when comparing FHA vs. conventional options.
For more on FHA loan costs and eligibility in California, see our FHA Loans California guide.
Are Closing Costs Tax Deductible in California?
Most closing costs are not directly tax deductible. However, a few specific items may reduce your federal tax liability if you itemize deductions.
Potentially deductible closing costs:
- Mortgage interest paid at closing (prepaid interest): Deductible in the year paid, subject to the $750,000 loan limit for mortgages originated after December 16, 2017.
- Mortgage discount points: Deductible if you meet IRS conditions, including that the loan is for your primary residence and the points are typical for your area.
- Prepaid property taxes: Deductible in the year paid. The SALT deduction cap increased to $40,000 per year starting in 2025, a significant increase from the prior $10,000 cap.
- Private mortgage insurance (PMI) premiums: Starting in tax year 2026 (filed in April 2027), PMI becomes deductible again for taxpayers with adjusted gross income under $110,000.
Not deductible:
- Title insurance premiums
- Escrow fees
- Appraisal fees
- Homeowner’s insurance premiums
- Loan origination fees (unless structured as discount points meeting IRS criteria)
- Recording fees
Important: The standard deduction for tax year 2026 is $16,100 for single filers and $32,200 for married couples filing jointly. Itemizing only makes sense if your combined deductions exceed these thresholds. Given California’s high home prices, many buyers who pay significant mortgage interest may benefit from itemizing, but always consult a tax professional for advice specific to your situation. JVM is not a tax advisor.
For additional perspective on how closing costs compare in other states where JVM lends, see our Texas Closing Costs guide and our Oregon Closing Costs guide.
Frequently Asked Questions
What are average closing costs in California?
Buyers in California typically pay between 2% and 5% of the purchase price in closing costs. On the 2026 projected state median home price of approximately $905,000, that ranges from about $18,100 to $45,250. Sellers pay more, with closing costs excluding commissions averaging around 2.73% of the sale price, plus real estate commissions currently averaging 5.03% statewide.
Who pays closing costs in California, buyer or seller?
Both parties pay closing costs in California, but who pays specific fees depends on the type of cost and where in the state the property is located. Buyers pay lender-related fees and prepaid items. Sellers pay transfer taxes, recording fees, prorated property taxes, and HOA fees. Title insurance and escrow fees follow regional customs: in Northern California, the buyer typically pays owner’s title insurance; in Southern California, the seller pays. These customs are not required by law and can be negotiated.
How much should I budget for closing costs in California?
Plan for 2% to 4% of the purchase price as a realistic starting range for buyers. On a $750,000 home, that means budgeting $15,000 to $30,000 in addition to your down payment. If you are buying in a high-transfer-tax city like San Francisco or Los Angeles, or using jumbo financing, budget toward the higher end. Your lender is required to provide a Loan Estimate within three business days of application that will show you the specific amounts for your transaction.
Are closing costs tax deductible in California?
Most closing costs are not deductible. The exceptions are prepaid mortgage interest, mortgage discount points under certain IRS conditions, and prepaid property taxes. Starting in tax year 2026, PMI premiums are also deductible again for eligible taxpayers under $110,000 AGI. The SALT deduction cap increased to $40,000 per year in 2025, which may allow more California homeowners to benefit from itemizing. Consult a tax professional for advice specific to your situation.
Ready to Get a Closing Cost Estimate?
Closing costs in California are predictable when you know the right questions to ask. The earlier you request a Loan Estimate and confirm your property’s county customs, the fewer surprises you will face at the closing table.
JVM Lending works with buyers across California, from the Bay Area to Los Angeles and San Diego. Our team can walk you through your specific county’s closing cost customs, review your Loan Estimate for accuracy, and help you compare loan options side by side.
Ready to get pre-approved? Contact JVM Lending today for a free rate quote and pre-approval.
