both · Philadelphia & Montgomery

Transfer tax and closing costs: the PA numbers

The line items that surprise people — and why the same house costs more to close in Philadelphia than in Blue Bell.

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In this lesson

Transfer tax, the big one The rest of the buyer's column Any transfer-tax exemptions?Can the seller pay my closing costs?

Transfer tax, the big one

Pennsylvania charges 1% of the sale price as state realty transfer tax, and your municipality plus school district add their own. In most Montgomery County towns the local share is another 1% — call it roughly 2% total. Philadelphia's local rate is much higher — the combined city-plus-state figure runs above 4% — which materially changes the math on a city purchase. Custom in our market splits transfer tax 50/50 between buyer and seller, but it's negotiable like everything else in the agreement.

The rest of the buyer's column

All-in, Philadelphia-area buyers commonly land in the 5–7% of purchase price range including their transfer-tax share — our closing-cost calculator breaks it down for your county and price.

Title insurance — PA rates are state-filed by price tier; buyer customarily pays for both the lender's and owner's policies
Lender costs — origination, appraisal, credit — itemized on your Loan Estimate
Prepaids and escrows — first-year insurance, months of taxes, prepaid interest
Settlement fees — the title company's charges for conducting closing
Municipal certifications and, in some towns, use-and-occupancy inspections

Any transfer-tax exemptions?

Transfers between spouses, parent and child, and certain other family and estate transfers are excluded — relevant if you're buying from or selling to family.

Can the seller pay my closing costs?

Sellers can agree to credit a buyer toward closing costs within loan-program limits — a common structure for keeping cash-light buyers liquid. It's priced into the offer, not free money.

General education, not legal, tax or financial advice. Your contract and circumstances matter. Confirm current requirements with your lender, settlement professional or qualified adviser.