Who pays closing costs in Tennessee: a Franklin buyer's guide

Tennessee closing costs at a glance (2026)

Who pays closing costs in Tennessee: the law and your offer

By statute, the buyer pays Tennessee's transfer tax and the borrower pays the mortgage tax. On Zillow's typical Franklin home value of $913,277 (September 2026), that's $3,379.12 of transfer tax, plus $837.92 of mortgage tax if you borrow 80%. A purchase contract can move either cost to the other side, so the time to decide who pays is when you write the offer. At the closing table it's too late to negotiate.

Run your own price and loan through the Tennessee closing cost calculator before you make an offer. It computes both state taxes, so the only numbers left to collect are the title quotes and your lender's figures.

Tennessee transfer tax: rate, base and who pays

The transfer tax is the one closing cost every deed carries, cash or financed, and it's the largest state tax at closing on a Franklin-priced home.

Tennessee transfer tax rate: $0.37 per $100

The rate is $0.37 for every $100 of the greater of the property's value or the price paid (TCA 67-4-409(a)). For a quitclaim deed, the tax is figured on the consideration paid. On a $913,277 home that's 0.0037 × $913,277 = $3,379.12.

Transfer tax when the price and the value differ

Because the base is the greater of the two, a bargain price doesn't always lower the tax. Buy a home valued at $913,277 for $880,000 and the tax is still figured on the value: $3,379.12 rather than $3,256. Pay over value in a multiple-offer situation and the higher price becomes the base instead.

Who pays the transfer tax in Tennessee

The law places it on the grantee, the person receiving the deed: the buyer. That's the default. Your purchase contract can say otherwise, and if it's silent on a point you care about, the statute's answer is the one you're left with. If you want the seller to cover it, write that into the offer as a term the seller accepts or counters.

Oath of consideration on a Williamson County deed

The grantee, an agent or a trustee states the value or consideration under oath on the deed, and a false statement is perjury under TCA 39-16-702. The figure on the deed is the base for the tax, which is why it's sworn.

Tennessee mortgage tax: rate, exemption and cost by loan size

The mortgage tax, also called the indebtedness tax, applies only when you borrow. It's charged on the recorded debt.

Tennessee mortgage tax rate and the $2,000 exemption

The rate is $0.115 per $100 of debt above $2,000 (TCA 67-4-409(b)). The first $2,000 of any loan is exempt. On an 80% loan of $730,622 against a typical Franklin home: ($730,622 − $2,000) × 0.00115 = $837.92.

Who pays the mortgage tax in Tennessee

The tax falls on the borrower (the mortgagor or debtor). Every extra $100,000 you borrow adds $115.

Mortgage tax by down payment on a Franklin home

The spread from 50% to 95% is under $500, so the mortgage tax shouldn't drive your down payment; the interest rate and the monthly payment matter far more.

Cash purchases and the Tennessee mortgage tax

Pay cash and there's no recorded debt, so the mortgage tax is $0. A buyer who sells a home in another state and buys in Franklin outright saves the full $837.92 on the typical home, though the $3,379.12 transfer tax still applies.

Closing costs in Franklin and Williamson County: example tax bills

The two state taxes scale with the price and the loan: choosing Spring Hill over Brentwood cuts them by $4,020.10. These use Zillow's typical home values for September 2026 and an 80% loan.

Closing costs on a $300,000 house in Tennessee

On a $300,000 home with a $240,000 loan, the two state taxes come to $1,383.70. That's only part of the bill: title insurance, the lender's charges and recording fees come on top, and only your Loan Estimate and title quotes give those numbers. For Williamson County budgets, start from the town rows above. Our Williamson County towns guide compares the places in the table.

Closing costs on a typical Franklin home

For the $913,277 home, the state taxes are $4,217.04 financed or $3,379.12 in cash. Title and lender figures come on top. The closing cost calculator for Tennessee redoes this for any price, value and loan.

Using the Tennessee closing cost calculator

The calculator has two boxes: purchase price and loan amount. If the property's value is higher than your price, enter the value in the price box, since the transfer tax uses the greater of the two. It subtracts the $2,000 exemption before the mortgage tax and adds the two taxes together. The register's receipt may differ by cents from rounding. Title premiums, recording fees and lender charges aren't included, because no statute sets them; get those in writing from your lender and title company.

Relocation packages and Tennessee closing costs

If your employer's relocation package covers buying costs, ask its relocation company which lines it reimburses and whether it needs the Closing Disclosure or a separate receipt. Then plan the offer around what the package won't cover.

Tennessee title insurance: lender's and owner's policies

Title insurance pays for losses from defects in the title that the search missed. It comes in two policies, and they protect different people.

Lender's and owner's title policies

A lender's policy protects the bank's loan; an owner's policy protects your equity. Ask your lender whether its loan requires a lender's policy, and decide on the owner's policy as a separate choice. A cash buyer has no lender's policy to buy.

Tennessee title insurance rates are filed, not set by the state

Each title insurer files its rates with the Tennessee Department of Commerce and Insurance; the state doesn't publish one price for everyone. So get quotes from more than one title company. Ask each for the owner's and lender's premiums together and for its closing and settlement fees on the same sheet.

Other closing costs in Williamson County

Williamson County Register of Deeds recording fees

Your deed and deed of trust are recorded at the Williamson County Register of Deeds (Register Sherry Anderson; (615) 790-5706; Monday to Friday, 8:00 to 4:30). The office publishes an online fee calculator for recording fees. The transfer and mortgage taxes are also paid when the deed and deed of trust are recorded, which is why they appear on your closing statement next to the recording fees.

Property tax at a Franklin closing

Williamson County mails property tax bills in October and they're due February 28. A closing between those dates means a bill for the year may already be out, so ask how your contract splits the current year's tax. Rates and the bill math are in our Williamson County property tax rates guide.

Lender closing costs on a Tennessee mortgage

Origination charges, appraisal, credit report and prepaid interest come from your lender, and they're listed on your Loan Estimate. Compare those line by line between lenders; the state taxes will match on every estimate for the same loan amount. If you're buying for the first time, our Tennessee first-time home buyer guide covers help aimed at buyers new to owning.

Seller closing costs in Tennessee and what you can ask for

Nothing in the transfer or mortgage tax statutes makes the seller pay your closing costs, so a seller can refuse. What a seller pays for you is whatever the two of you agree in the contract: a share of the transfer tax, a credit at closing, or nothing.

Asking a Franklin seller to pay closing costs

Write the request as a specific dollar figure or a named cost, not a percentage left to interpretation. Zillow's Nashville-metro figures for August 2026 show homes selling at 97.8% of list price and 34% of listings taking a price cut, so a listing that has already been reduced is where a credit request has room. Franklin's own values rose 3.02% in the year to September 2026, so on a new listing, ask for the transfer tax rather than a large credit. Our Franklin housing market report shows how fast homes are moving. Bill can show you how the Tennessee purchase agreement handles each cost before you sign.

Closing costs step by step on a Franklin purchase

Each closing cost has a moment when you can still change it. Work through them in this order.

1. Before the offer: run the calculator with your price and loan, and decide what you'll ask the seller to cover.
2. In the offer: name who pays the transfer tax and any seller credit, in dollars.
3. After you apply for the loan: read the Loan Estimate and compare lender charges between lenders.
4. Once under contract: request owner's and lender's title quotes from more than one title company.
5. Before closing: check the final figures against your calculator result and the contract terms, including the current year's property tax.

Tennessee closing cost mistakes, priced on a Franklin home

Four decisions that change the bill on a typical Franklin home.

• Leaving the transfer tax out of the offer: the statute assigns it to you, so silence costs $3,379.12.
• Borrowing more than you need: every $100,000 of extra loan adds $115 of mortgage tax, and $837.92 in total on an 80% loan.
• Taking the first title quote: rates are filed by each insurer, so one quote tells you nothing about the others.
• Ignoring the property tax calendar: a fall closing can land on a bill that's already out and due February 28.

Every new-resident errand, from the license to the car, is in our moving to Tennessee checklist, and the trade between no income tax and the taxes that replace it is in our guide to Tennessee income tax. Confirm your own closing with a Tennessee real estate attorney or CPA.