Pennsylvania Realty Transfer Tax: How It Works and Who Pays

When a deed is recorded in Pennsylvania, a realty transfer tax is due. It is one of the larger costs at settlement, so it is worth understanding before you set a price or write an offer.

How the tax is calculated

The Commonwealth charges 1% of the value of the real estate transferred. In most transactions that value is the sale price.

Local governments add their own transfer tax on top of the state's. Outside Philadelphia, the local tax is usually shared between the municipality and the school district, and local rates vary from place to place. Your settlement company will calculate the exact amount for a specific property.

Philadelphia's rate is higher

Philadelphia levies its own realty transfer tax of 3.578% (effective July 1, 2025), so the combined rate there is 4.578%. On a city purchase, transfer tax is a noticeably larger line item than in the surrounding counties.

Who pays

By law, both the buyer and the seller are responsible for the tax. In practice, the agreement of sale says how it is divided. Splitting it equally is common in Pennsylvania, but it is negotiable, so read that clause before you sign.

Exemptions and special cases

Some transfers are excluded or taxed differently, such as certain transfers between family members, and new construction can be treated differently depending on how the contract is structured. The Department of Revenue publishes the rules. If your situation is unusual, ask your settlement company or attorney before you commit to a structure.

What it means for your numbers

• Sellers: include your share of transfer tax when you estimate net proceeds. Our seller net proceeds calculator has a field for it.
• Buyers: include your share in the cash you will need at settlement, alongside your down payment and other closing costs.