Pennsylvania Realty Transfer Tax: Who Pays and What It Costs

Last updated August 12, 2026

·Independent Pennsylvania tax education

Pennsylvania charges a realty transfer tax whenever real estate changes hands by deed or similar writing. This guide explains the state rate, the local taxes stacked on top, who is liable, and which transfers are exempt.

Key takeaways

The Commonwealth charges a flat 1% state realty transfer tax on the value of real estate transferred by deed, instrument, long-term lease, or other writing.
Nearly every municipality and school district adds its own local transfer tax on top of the state 1%, so the combined bill outside Philadelphia is commonly around 2% — confirm your local rate before closing.
Both the seller (grantor) and buyer (grantee) are jointly and severally liable; the customary 50/50 split is by agreement, not law.
Philadelphia charges a much higher combined rate than the rest of the state — verify the current figure at phila.gov.
Many family and estate transfers are exempt, but the exemption is not automatic: you must record the deed with supporting documentation.

What the Pennsylvania realty transfer tax is

Pennsylvania's realty transfer tax is a tax on the transfer of real estate by deed or similar writing. It attaches to the document itself — the deed, instrument, long-term lease, or other writing that moves the property.

The Commonwealth imposes the tax at a rate of 1 percent on the value of the real estate transferred, including improvements the parties have contracted for. In an ordinary sale, that value is the price paid.

The county Recorder of Deeds collects the tax when the deed is recorded and remits the Commonwealth's share to the Pennsylvania Department of Revenue. Most collections go to the state's General Fund, and a portion is dedicated to the Keystone Recreation, Park and Conservation Fund.

Who owes the tax

Anyone transferring Pennsylvania real estate by deed, instrument, long-term lease, or other writing is within reach of the tax, because the tax attaches to the document.

Both the seller (grantor) and the buyer (grantee) are jointly and severally liable. That means the Commonwealth can collect the full amount from either party. In practice the two sides split the tax by agreement — commonly 50/50 — but that split is a matter of contract, not law.

Parties to an exempt transfer owe nothing, but they must still record the deed with documentation supporting the exemption claimed.

State and local rates

The state portion is a flat 1 percent. What surprises many buyers and sellers is the local layer: nearly every municipality and school district imposes its own realty transfer tax on top of the state rate.

A common local rate is 1 percent, which brings the combined total near 2 percent across much of Pennsylvania. But local rates vary by jurisdiction, so the figure for your specific municipality and school district may differ.

State rate: a flat 1% on the value transferred.
Local rate: added by municipalities and school districts, commonly around 1%, but it varies — confirm the current local rate at munstats.pa.gov or with your county Recorder of Deeds.
Combined: often near 2% outside Philadelphia, but do not rely on that ballpark without checking your jurisdiction.

Philadelphia charges much more

Philadelphia is a major exception. It layers a substantially higher City realty transfer tax on top of the Commonwealth's 1 percent, producing a combined rate well above the statewide 2 percent ballpark.

Common exemptions

Pennsylvania exempts a range of transfers. Family transfers are the most common: transfers between spouses, between parents and children, between grandparents and grandchildren, and between siblings are generally exempt. Property that passes by will or by intestate succession is also exempt.

Other exempt categories include transfers to governmental units, transfers between religious organizations, certain transfers to shareholders or partners, transfers to or from nonprofit industrial development agencies, deeds to burial sites, and certain transfers involving real estate companies and farms.

Philadelphia mirrors many of these family exemptions — including transfers between spouses, between direct ascendants and descendants, and between siblings (including legally adopted and half siblings), along with the spouses of those family members and property transferred under a will.

In every case the exemption is not automatic. You must record the deed with supporting documentation, and often a Realty Transfer Tax Statement of Value (Form REV-183), to claim it.

How to file and pay

In most of Pennsylvania there is no separate return to mail. The tax is paid to the county Recorder of Deeds when the deed is presented for recording — normally handled by your title company or closing agent as part of closing.

A Realty Transfer Tax Statement of Value (Form REV-183) may be required with the deed. It is commonly needed for exempt transfers or when there is no stated arm's-length sale price, to document the value and any exemption claimed.

For transfers without an actual sale price, taxable value is computed using the county's common level ratio factor applied to the property's assessed value. These factors are published annually by the Department of Revenue for use with Forms REV-183 and REV-1728; confirm the current factor for your county at the Department of Revenue's Common Level Ratios page.

In Philadelphia, pay the combined tax within 30 days of acquiring the property, when the deed is recorded.

Most of PA: pay at the county Recorder of Deeds when recording the deed; usually handled at closing.
File Form REV-183 (Statement of Value) when required — for exempt transfers or when there is no arm's-length price.
No sale price? Use the county common level ratio factor times the assessed value; confirm the current factor at the Department of Revenue.
Philadelphia: pay within 30 days of acquiring the property, at recording.

Common pitfalls

The biggest surprises come from the local layer and from assuming a non-sale is tax-free. Budget for the combined rate, document any exemption carefully, and verify live numbers before you close.

If your transfer is unusual — a gift, adding a name to a deed, a transfer between related businesses, or a transfer of an interest in a real estate company — get advice before assuming no tax is due. A PA-licensed real estate attorney or tax professional can confirm the treatment and help you keep the transfer consistent with the rest of your filings.

The state 1% is only part of the bill — nearly every locality adds its own tax, commonly bringing the total near 2% outside Philadelphia.
Philadelphia's combined rate is much higher; do not assume the statewide ballpark applies there.
Family exemptions are not automatic — record the deed with supporting documentation and often a Statement of Value.
Joint and several liability means if one side does not pay, the other can be pursued for the full amount; the 50/50 split is by agreement.
Transfers that look like gifts can still trigger tax on the computed value — get advice first.
Local rates and the Philadelphia rate change over time; verify the live numbers at the official sources before closing.

Best practices

Confirm your specific local (municipal plus school district) rate at munstats.pa.gov or with the county Recorder of Deeds before you close, rather than relying on the 2 percent ballpark.
If you are transferring within Philadelphia, verify the current combined City-plus-Commonwealth rate at phila.gov, since the City rate changes by ordinance.
Claim any family or estate exemption by recording the deed with supporting documentation, and file a Statement of Value (Form REV-183) where required.
For transfers with no sale price, use the county's current common level ratio factor from the Department of Revenue to compute taxable value.
Spell out in your agreement of sale how the tax will be split, since grantor and grantee are jointly and severally liable and the 50/50 custom is not automatic.
For gifts, deed changes, or business-related transfers, consult a PA-licensed real estate attorney or title professional before assuming no tax is due.

Common mistakes

Budgeting for only the 1 percent state rate and overlooking the local transfer tax that nearly every jurisdiction adds on top.
Assuming the statewide 2 percent ballpark applies in Philadelphia, where the combined rate is much higher.
Treating a family transfer as automatically exempt without recording the required supporting documentation and Statement of Value.
Assuming a non-sale transfer — a gift, adding a name to a deed, or a transfer of an interest in a real estate company — is tax-free when it can still be taxed on the computed value.
Relying on a rate you saw earlier instead of verifying the current local or Philadelphia rate at the official source before closing.
Forgetting that both parties are liable, so if one side does not pay, the other can be pursued for the full amount.

Official Pennsylvania sources

PA Realty Transfer Tax
Pennsylvania realty transfer tax rules, Statement of Value (REV-183), and exemptions.
Philadelphia Realty Transfer Tax
Philadelphia's combined realty transfer tax rate, due dates, and exemptions.
PA Common Level Ratio (CLR) factors
Annual common level ratio factors used to value non-arm's-length real estate transfers.

Frequently asked questions

What is the Pennsylvania realty transfer tax rate?

The Commonwealth charges a flat 1 percent on the value of real estate transferred. Almost every municipality and school district adds its own local transfer tax on top — commonly around 1 percent, for a combined total near 2 percent in much of the state. Local rates vary and change, so confirm your current combined rate at munstats.pa.gov or with your county Recorder of Deeds.

Who pays the transfer tax, the buyer or the seller?

Both. The grantor (seller) and grantee (buyer) are jointly and severally liable, so the Commonwealth can collect the full amount from either one. In practice the two sides split it by agreement, commonly 50/50, but that split is a matter of contract rather than law.

Are family transfers exempt?

Many are. Transfers between spouses, parents and children, grandparents and grandchildren, and siblings are generally exempt, as is property passing under a will or by intestate succession. The exemption is not automatic — you must record the deed with supporting documentation, often including a Statement of Value (Form REV-183).

Why is Philadelphia's transfer tax so much higher?

Philadelphia adds a substantially higher City realty transfer tax on top of the Commonwealth's 1 percent, producing a combined rate well above the statewide ballpark. The City rate is set by ordinance and changes over time, so confirm the current combined rate at phila.gov before relying on it.

How do I calculate the tax if there is no sale price?

For non-arm's-length transfers with no stated price, taxable value is computed using the county's common level ratio factor applied to the property's assessed value. The Department of Revenue publishes these factors annually for use with Forms REV-183 and REV-1728. Confirm the current factor for your county on the Department's Common Level Ratios page.

Do I have to file a separate return?

In most of Pennsylvania, no. The tax is paid to the county Recorder of Deeds when the deed is recorded, usually handled by your title company at closing. A Statement of Value (Form REV-183) may be required with the deed, especially for exempt transfers or when there is no arm's-length price. Philadelphia requires payment within 30 days of acquiring the property.

Next read

Pennsylvania Property Tax Guide

Transfer tax is a one-time cost at closing. Your ongoing cost is annual property tax — here's how that works in PA.

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Covers the flat 1% state rate, the local layer that pushes the common total near 2%, joint-and-several liability, family exemptions, and the Statement of Value, with the volatile Philadelphia and local rates deferred to official sources. Lacks a signed attorney/CPA review byline.

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