How to Calculate Transfer Taxes and Closing Costs in PA
Here's something that catches a lot of Pennsylvania buyers off guard: transfer tax isn't one number statewide. It's a combination of a fixed state rate and a local rate that varies — sometimes dramatically — depending on exactly where the property sits. Get this wrong in your budgeting, and it can be a genuinely unpleasant surprise at the closing table.
The two-part structure
Pennsylvania's Realty Transfer Tax has two layers:
- State rate: a flat 1% of the property's value, the same everywhere in Pennsylvania.
- Local rate: set by your municipality and school district, and this is where the real variation lives. For most of the state, the local portion is also around 1%, bringing the typical combined total to roughly 2%. But several major cities charge substantially more.
Rates in major PA markets
This table shows combined (state + local) rates in some of the state's largest markets. These are exactly the kind of numbers worth double-checking with your title company before closing, since local rates do change — Allentown's, for example, increased as recently as January 2026.
| Location | Combined Rate |
|---|---|
| Most PA municipalities (typical) | ~2.0% |
| Allentown | 2.5% |
| Philadelphia | 4.578% |
| Pittsburgh | 5.0% |
How to actually calculate it
The tax applies to the property's total "consideration" — which usually just means the sale price, but if you're assuming any of the seller's existing debt on the property, that gets added to the taxable base too. For most straightforward purchases, though, it's simply: sale price × combined rate = transfer tax owed.
Example: $350,000 home in a typical PA municipality (2%)
Example: the same $350,000 home in Philadelphia (4.578%)
That's the same home, over $9,000 apart, purely based on which side of a municipal line it sits on. If you're house-hunting anywhere near Philadelphia specifically, this is a number worth pinning down early, not discovering at the closing table.
Who actually pays it
Pennsylvania law doesn't dictate who pays — buyer and seller are jointly and severally liable, meaning the county can collect from either party if it's unpaid. In practice, it's negotiable and often split between buyer and seller as part of the purchase agreement, though local custom varies by market.
Common exemptions
Certain transfers are excluded from the tax entirely — transfers between spouses, parents and children, grandparents and grandchildren, and siblings are the most common examples, along with certain government and nonprofit transfers. If your situation might qualify, it's worth confirming with your title company before assuming the tax applies.
Want your actual number, not just an estimate?
Transfer tax is one piece of a bigger closing cost picture. We'll walk through the complete, itemized breakdown for your specific property and municipality.
Get a Same-Day QuoteRates cited are current as of July 2026, sourced from the Pennsylvania Department of Revenue and individual municipal authorities, and are subject to change. This article is for general educational purposes and isn't a commitment to lend or tax advice — confirm current rates and your specific liability with your title company or a qualified tax professional. Evergreen Mortgage Advisers, LLC — NMLS #2839469. Jennifer Yamamoto, NMLS #259293.