Cross a municipal boundary in Pennsylvania and the tax on the very same house sale can more than double. The Commonwealth’s 1% state realty transfer tax is only the floor — each county, municipality, and school district stacks its own local rate on top, from the typical 1% in most of the state to 3.278% in Philadelphia and 4% in Pittsburgh. This calculator combines the layers for your location and splits the total the way Pennsylvania closings customarily do: 50/50 between buyer and seller.
The two-layer formula
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.
How the combined rate moves with location:
| Location | State | Local | Combined | Tax on $350,000 |
|---|---|---|---|---|
| Typical PA municipality | 1% | 1% | 2% | $7,000 |
| Philadelphia | 1% | 3.278% | 4.278% | $14,973 |
| Pittsburgh | 1% | 4% | 5% | $17,500 |
Philadelphia’s unusually high local rate
Philadelphia’s 3.278% local realty transfer tax is among the highest in the state and significantly raises closing costs for Philadelphia real estate transactions. Combined with the 1% state tax, a Philadelphia buyer and seller together pay 4.278% of the price in transfer tax at closing. On a $400,000 transaction that is $17,112 in transfer tax — $8,556 per side at the standard 50/50 split. This is a meaningful factor in the decision to buy in Philadelphia versus suburban municipalities, where the combined rate is typically 2%.
The Philadelphia local rate is set by Philadelphia’s City Council and has been at 3.278% for an extended period. It is also sometimes expressed as a sum of sub-rates (city tax + school district tax), but the combined effective rate is what applies at closing.
Exemptions from Pennsylvania realty transfer tax
Several categories of transfers are fully or partially exempt from the Pennsylvania realty transfer tax:
- Family transfers: transfers between spouses, parents and lineal children, grandparents and grandchildren, and siblings are exempt from both state and local transfer tax.
- Divorcing spouses: transfers ordered as part of a divorce are generally exempt.
- Wills and intestacy: transfers to a beneficiary under a will or by intestate succession are exempt.
- Government transfers: transfers to or from the Commonwealth, local governments, or qualifying nonprofit entities may be exempt.
- Mere changes of identity: reincorporations and transfers to wholly-owned subsidiaries where the economic ownership does not change may qualify for exemption.
These exemptions apply to the arm’s-length transfer tax. Always confirm the applicable exemptions with a Pennsylvania real estate attorney before closing.
Transfer tax on new construction
When you buy a newly constructed home in Pennsylvania, the transfer tax applies to the full purchase price including the land and building. Unlike a resale, there is typically only one side of the tax — the builder/developer as seller and you as buyer — though the 50/50 custom still applies to the negotiation. Some developers include transfer tax in the stated price; others add it at settlement. Review your agreement of sale carefully to understand who is responsible for each half.
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.
- No transfer tax on refinances. Only sales and certain transfers trigger the tax — refinancing your existing mortgage does not.
Sources
- Pennsylvania Department of Revenue — administers the 1% state realty transfer tax
- City of Philadelphia — Realty Transfer Tax — the 3.278% local rate and filing rules
Estimate only. Local rates are set by ordinance and change; exemption eligibility is fact-specific and non-arm’s-length transfers use the common-level-ratio computed value instead of price. Confirm your municipality’s current rate with the county recorder of deeds before closing. All math runs locally in your browser.