Pennsylvania charges a realty transfer tax every time real estate changes hands by deed. In most towns it is 2 percent of the price: 1 percent to the state and 1 percent to the local municipality and school district. Buyers and sellers customarily split it, so each pays about 1 percent. On an $800,000 home, that is $16,000 in total, or $8,000 each.
That simple rule covers most sales in the Philadelphia suburbs, but not all of them. A few townships charge more, Philadelphia charges much more, and family transfers, trusts, and gifts follow special rules. This guide walks through each one.
How the tax is calculated
For a normal sale between unrelated buyers and sellers, the tax is based on the total agreed price, plus any liens that stay with the property. The county Recorder of Deeds collects it when the deed is recorded at settlement, then sends the state’s share to the Pennsylvania Department of Revenue and the local share to the municipality and school district.
You do not write a separate check. The title company collects your share at settlement and it appears on your closing statement.
Rates by county and town
| Area | Total transfer tax |
|---|---|
| Montgomery County | 2% |
| Bucks County | 2% |
| Chester County (most municipalities) | 2% |
| Malvern and Tredyffrin, Chester County | 2.5% |
| Delaware County (most municipalities) | 2% |
| Radnor and Upper Darby, Delaware County | 2.5% |
| Upper Providence, Delaware County | 3% |
| Philadelphia (since July 1, 2025) | 4.578% |
| Pittsburgh | 5% |
A few of these matter more than buyers expect. Much of Wayne sits in Radnor or Tredyffrin, and some Berwyn, Devon, and Paoli addresses are in Tredyffrin, so a home there may carry 2.5 percent rather than 2 percent. Next door in Easttown Township, which includes most of Devon, the total is the usual 2 percent. Chestnut Hill is in Philadelphia, so it carries 4.578 percent. Check the specific municipality for any home you are buying or selling.
Worked examples
| Sale | Rate | Total tax | Each side (50/50) |
|---|---|---|---|
| $800,000 home in Blue Bell (Montgomery County) | 2% | $16,000 | $8,000 |
| $1,000,000 home in Radnor Township | 2.5% | $25,000 | $12,500 |
| $1,000,000 home in Chestnut Hill (Philadelphia) | 4.578% | $45,780 | $22,890 |
The difference between a 2 percent town and Philadelphia on a $1 million sale is almost $26,000. That is worth knowing before you compare homes across the city line.
Who pays: custom versus law
Custom: buyer and seller split the tax equally. In the Philadelphia suburbs, that is the expectation in nearly every agreement of sale.
Negotiation: the split can be changed. A seller might agree to pay more of it to help a buyer with cash at closing, or a buyer might absorb it to make an offer stronger.
Law: under Pennsylvania law, buyer and seller are jointly and severally liable, which means the government can collect the entire tax from either party if it is not paid. Philadelphia states plainly that it can collect 100 percent from either side.
Transfers that are excluded
Pennsylvania excludes several kinds of transfers from the tax. The most common:
- Family transfers between spouses; parents and children; grandparents and grandchildren; siblings; and a parent or grandparent and a child’s spouse, or a person and a sibling’s spouse. If the family member who receives the property transfers it again within one year, that transfer is taxable.
- Divorce: transfers between former spouses of property one or both acquired before or during the marriage.
- Living trusts: moving your home into your own revocable living trust for no or nominal payment. Later transfers out of the trust have their own rules, and the recorder will ask to see the trust agreement.
- Wills and intestacy: a transfer from an estate’s personal representative to the heir or person named in the will, for no or nominal payment.
- Correcting deeds and certain transfers to the federal or state government.
One common misunderstanding: buying a home from a family member’s estate is not covered by the family exclusion. If you purchase a parent’s house from the estate, transfer tax generally applies. The guides to selling a house held in trust and selling an inherited home as an executor cover those situations.
Gifts and below-market sales: “computed value”
When a property is given away or sold for less than a true market price, the tax is based on its computed value: the property’s assessed value multiplied by the county’s common level ratio factor. In Montgomery County, that factor is 3.36 for July 1, 2026 through June 30, 2027. So a home assessed at $250,000 has a computed value of $840,000 for transfer tax purposes, even if it changes hands for $1.
Chester County charges the tax on whichever is higher, the price or the computed value. If you are planning a family sale or gift that does not fit one of the exclusions above, talk with your attorney about the tax before you sign.
First-time buyers
Pennsylvania’s state transfer tax has no first-time buyer exemption, and Philadelphia’s own guidance says no discounts are available on its tax. First-time buyers should simply budget for their share. The guide to closing costs when buying a home in Pennsylvania puts the transfer tax in context with lender and title costs, and the guide to first-time homebuyer programs in Pennsylvania covers help that is available.
Planning for it
- Sellers: include your half of the transfer tax in your net-proceeds estimate. The guide to the cost of selling a home in Pennsylvania shows the full picture.
- Buyers: count your half in the cash you need at closing, along with your down payment.
- Everyone: confirm the municipality’s rate early, especially near Radnor, Tredyffrin, Malvern, or the Philadelphia line.
This guide is general information, not tax or legal advice. Rules for specific transfers can be complex, so confirm your situation with your attorney or title company.
Working with Karen
Karen Langsfeld is a REALTOR® and Pricing Strategy Advisor (P.S.A.) with Berkshire Hathaway HomeServices Fox & Roach. Every valuation she prepares includes a net-proceeds estimate that accounts for the transfer tax in your specific municipality, so you know what you will actually take away from a sale. Request one on the home valuation page.
Contact Karen at (215) 495-2914 or through the contact page.
Sources: Pennsylvania Department of Revenue; 61 Pa. Code Chapter 91; Montgomery, Bucks, Chester, and Delaware County Recorder of Deeds; City of Philadelphia; Allegheny County.