Learning Library · Pennsylvania Essentials · lesson 3
Transfer tax and closing costs: the PA numbers
5 min read
The line items that surprise people — and why the same house costs more to close in Philadelphia than in Blue Bell.
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
Quick answers
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.
Educational content only — not legal, tax, or financial advice. Program details, rates, and tax figures change; verify current specifics before relying on them. The Woods Team · Berkshire Hathaway HomeServices Fox & Roach, REALTORS® · Equal Housing Opportunity.