How much is the real estate transfer tax in Pennsylvania?

Pennsylvania charges a 1% state realty transfer tax on the property's value. Most municipalities add a local transfer tax — commonly another 1%, split among the county, municipality, and school district — for a typical combined rate of 2% of the sale price.

Why is Philadelphia's transfer tax so high?

Philadelphia imposes a 3.278% local realty transfer tax on top of the 1% state tax, for a combined 4.278%. That is one of the highest transfer tax rates in the country and significantly raises closing costs on Philadelphia property.

Who pays the transfer tax, buyer or seller?

By custom in Pennsylvania the transfer tax is split equally between buyer and seller, each paying half. However, the split is negotiable and can be assigned entirely to one party in the purchase agreement.

Are there exemptions from PA transfer tax?

Yes. Transfers between spouses, parents and children, and other close family members are generally exempt, as are transfers to the government, by will or intestacy, and certain refinances and corrections. This calculator estimates the standard arm's-length transfer.

Is the transfer tax based on sale price or assessed value?

Pennsylvania bases the tax on the actual consideration (sale price) in an arm's-length sale. For transfers without arm's-length consideration, the computed value using the county's common-level ratio applied to assessed value is used instead.

Pennsylvania Real Estate Transfer Tax Calculator

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The Pennsylvania real estate transfer tax calculator estimates the deed transfer tax on a home sale. Pennsylvania layers a 1% state realty transfer tax with a local rate set by your county, municipality, and school district — so the total you pay at closing depends on where the property sits.

How it works

Two rates apply to the sale price:

state tax = sale price x 1%
local tax = sale price x local rate (commonly 1%, Philadelphia 3.278%)
total transfer tax = state tax + local tax

buyer share = total x 50%   (customary)
seller share = total x 50%  (customary)

The split is the local custom but is negotiable in the purchase agreement.

Worked example

A $350,000 home in a typical 1%-local municipality:

State tax: 350,000 x 0.01 = $3,500
Local tax: 350,000 x 0.01 = $3,500
Total transfer tax: $7,000 (each party typically pays $3,500)

The same $350,000 home in Philadelphia (3.278% local) owes 350,000 x 0.04278 = $14,973.

Tips and notes

Location is everything. Most of Pennsylvania runs around 2% combined, but Philadelphia and a few other municipalities are dramatically higher.
The split is negotiable. 50/50 is customary, but contracts can shift the whole tax to buyer or seller.
Family transfers are often exempt. Sales between spouses, parents, and children usually escape the tax entirely.
Based on price, not assessment. In a normal sale the tax follows the actual sale price, not the county’s assessed value.