Does buyer or seller pay transfer tax in PA?

Real Estate Transfer Tax State and local governments do not stipulate who pays the Transfer Tax. In most sale agreements, the seller and buyer divide the tax.

How Much Is Real Estate Transfer Tax in PA?

Introduction

Real estate transfer tax is a tax imposed on the transfer of real estate from one owner to another. In Pennsylvania, the amount of real estate transfer tax depends on the county in which the property is located. This article will explain how much real estate transfer tax is in Pennsylvania and answer some frequently asked questions about the tax.

Real Estate Transfer Tax in Pennsylvania

In Pennsylvania, the amount of real estate transfer tax is determined by the county in which the property is located. The rate of the tax is usually a flat rate, but it can vary from county to county. In most counties, the rate of real estate transfer tax is 1% of the purchase price of the property. For example, if a property is purchased for $100,000, the real estate transfer tax would be $1,000.

Exemptions

There are some exemptions to the real estate transfer tax in Pennsylvania. If the property is being transferred between spouses or family members, there is no real estate transfer tax due. In addition, certain transfers of property between non-profit organizations are exempt from the tax.

Frequently Asked Questions

Q: What is the rate of real estate transfer tax in Pennsylvania?

A: The rate of real estate transfer tax in Pennsylvania depends on the county in which the property is located. In most counties, the rate is 1% of the purchase price of the property.

Q: Are there any exemptions to the real estate transfer tax?

A: Yes, there are some exemptions to the real estate transfer tax in Pennsylvania. If the property is being transferred between spouses or family members, there is no real estate transfer tax due. In addition, certain transfers of property between non-profit organizations are exempt from the tax.

Q: How do I pay the real estate transfer tax?

A: The real estate transfer tax must be paid at the time of closing. The buyer and seller will need to submit a check or money order to the county recorder’s office along with a completed Real Estate Transfer Tax Return form.

Conclusion

Real estate transfer tax is a tax imposed on the transfer of real estate from one owner to another. In Pennsylvania, the amount of real estate transfer tax depends on the county in which the property is located. Most counties have a flat rate of 1% of the purchase price of the property, but there are some exemptions to the tax. The real estate transfer tax must be paid at the time of closing and must be submitted along with a completed Real Estate Transfer Tax Return form.