Who Pays Transfer Tax in PA: Buyer or Seller?
Who Pays Transfer Tax in PA: Buyer or Seller?
It’s one of the first questions I get. Here’s the honest answer: whoever the agreement of sale says pays it.
What the tax is
When real estate changes hands in Pennsylvania, there’s a 1% state realty transfer tax. On top of that, most municipalities and school districts charge a local share, usually around 1% (PA Department of Revenue). So most places land around 2% total.
Who pays it
The law doesn’t lock it to the buyer or the seller. It’s a term in the deal. In a lot of local sales the buyer and seller split it. But “a lot” isn’t “always.” It can be negotiated like anything else.
A few situations where it moves:
- New construction or builder deals. Builders often write their own terms.
- Hot listings. A buyer may offer to pay more of it to win the house.
- Slow listings. A seller may pick up more of it to get a deal done.
- Cash buyers. Some cash buyers offer to cover it. Read the offer to see exactly what they’re paying.
How much money are we talking?
On a $300,000 house, 2% is $6,000. A 50/50 split is $3,000 each (my math). That’s real money, so it belongs in the negotiation, not as an afterthought.
Are any transfers exempt?
Yes. Pennsylvania lists certain transfers as exempt, including some transfers between family members and some farm transfers. Your title company or attorney will confirm whether yours qualifies (PA Revenue).
What about Maryland?
Maryland’s state transfer tax is 0.5% (Md. Tax-Prop. §13-203), plus county transfer and recordation taxes that vary by county. Who pays is also negotiable there.
Bottom line
Don’t assume. Look at the agreement of sale before you sign, and look at your net sheet so you know what it does to your bottom line.
Call or text Collin at 717-991-5085.
The local share depends on the municipality and school district, so a borough like Camp Hill or Mechanicsburg can differ from the township next door. Always confirm the rate for the exact address. We work all of PA and MD.
FAQ
Does the buyer or seller pay transfer tax in Pennsylvania?
It isn’t set by law. It’s negotiated and written into the agreement of sale. Splitting it is common in many local deals, but terms vary.
How much is the realty transfer tax in PA?
1% to the state, plus a local share that’s usually about 1%. That puts it around 2% total in most municipalities.
Are family transfers exempt from PA transfer tax?
Some are. Pennsylvania exempts certain transfers, including some between family members and some farm transfers. Have your title company or attorney confirm.
Sources:
- PA Revenue, realty transfer tax
- Md. Tax-Prop. §13-203
Collin Boyer is a real estate agent with Real of Pennsylvania, serving all of Pennsylvania and Maryland. Licensed in Pennsylvania (RS353567) and Maryland (5014481). Call or text 717-991-5085. Real of Pennsylvania · (717) 344-5577. Equal Housing Opportunity. This post is general information, not legal or tax advice.