Closing Costs in California (2026)

Buyers in California typically pay 2% to 5% of the purchase price in closing costs — roughly $17,322 to $43,305 on a median-priced home around $866,100. Our itemized estimate, including lender fees, title work, government fees, and prepaid taxes and insurance, comes to about $21,549 (2.5% of the price) with 20% down at 6.75%.

The effective property tax rate in California is approximately 0.74% of home value per year. On a median-priced home of $866,100, that works out to about $6,409 per year, or $534 per month. Several months of taxes are usually collected up front at closing to fund your escrow account.

Yes. California closings are handled by escrow companies, not attorneys. Documentary transfer tax is $1.10 per $1,000 at the county level; some cities add more. At that rate on a $866,100 home, the tax is roughly $953 — and in this state the buyer does not customarily pay it, so it is not included in our buyer-side estimate. Everything is negotiable in the purchase contract.

The 2026 conforming loan limit in most of California is $832,750 for a one-unit home. Some high-cost counties go as high as $1,249,125. On a median-priced $866,100 home with 20% down, the loan is $692,880 — within the conforming limit in most counties. FHA limits also vary by county (2026 floor about $541,288).

With 20% down on a $866,100 home, plan for about $194,769 in total: $173,220 for the down payment plus roughly $21,549 in closing costs and prepaid items. A smaller down payment reduces the cash needed but adds PMI to your monthly payment.

On a median-priced $866,100 home with 20% down and a 30-year loan at 6.75%, the total monthly payment is about $5,357 — $4,494 in principal and interest, $534 in property taxes, and $329 in homeowners insurance.