Selling a Home in Pennsylvania
Pennsylvania charges a Realty Transfer Tax of 1.0% at the state level, with most local jurisdictions adding another 1.0% (county + municipal + school district) for a combined 2.0% on the sale price. The tax is customarily split evenly between buyer and seller, so the seller's typical share is around 1.0% of the sale price. Philadelphia (4.278% combined) and Pittsburgh (5.0% combined) are dramatically higher — seller share roughly 2.14% and 2.50% respectively. On top of transfer tax, sellers pay agent commissions, the owner's title insurance policy, and closing fees.
Pennsylvania Transfer Tax & Closing Costs
Pennsylvania closings are handled by title companies or attorneys. The seller customarily pays half of the combined state-and-local realty transfer tax, the owner's title insurance policy, and a share of closing fees. Title insurance rates are state-promulgated.
How to Estimate Your Pennsylvania Net Proceeds
- Sale Price: Start with the agreed-upon contract price.
- Mortgage Payoff: Subtract your remaining loan balance and accrued interest through closing.
- Transfer Taxes: Apply the state, county, and any municipal transfer tax owed by the seller.
- Closing Costs: Deduct commissions, owner's title insurance, attorney/escrow, and recording fees.
Pennsylvania Net Proceeds = Sale Price − Mortgage Payoff − Commissions − Transfer Taxes − Closing Costs
