What is different in Pennsylvania:
- Pennsylvania charges a realty transfer tax of 1% of the value of the real estate, and local governments often add their own.
- The state holds both the seller (grantor) and the buyer (grantee) jointly and severally liable for the tax.
- Who actually pays is usually decided in the sales contract, so read that section carefully.
Most closing costs are the same in every state: the lender's fees, the appraisal, title services, prepaid interest, and deposits for taxes and insurance. The Consumer Financial Protection Bureau says closing costs typically run 2% to 5% of the price. This page covers what is specific to Pennsylvania: its transfer and recording taxes, who owes them, and its property tax level. Every fact comes from an official page listed under Sources, and we say so where a rule depends on your contract or county.
The realty transfer tax
According to the Pennsylvania Department of Revenue, the realty transfer tax is imposed at 1 percent on the value of real estate transferred by deed, instrument, long-term lease or other writing. The tax is collected by the county Recorder of Deeds, often along with an additional local realty transfer tax. The Recorders of Deeds remit the state's 1 percent to the Department of Revenue, and local governments may share their tax among school districts and municipalities.
On a $350,000 sale, the state's 1% share is $3,500. The local tax comes on top of that, and its rate depends on where the home is, so ask your title company for the total.
Who pays it
The Department of Revenue says both the grantor and the grantee are held jointly and severally liable for payment of the tax. In a sale, the grantor is the seller and the grantee is the buyer. "Jointly and severally" means the state can collect the whole tax from either one. It does not say how you and the seller split the cost. That is set by your purchase contract, so read it, and ask your agent or attorney who is paying and how much.
Some transfers are exempt, such as certain transfers among family members, but a typical sale to an unrelated buyer is not.
Property taxes
The Tax Foundation's table, built from the Census Bureau's 2024 American Community Survey, puts Pennsylvania's effective property tax rate on owner-occupied housing at 1.26%. On a $350,000 home that is about $4,410 a year. Bills vary by county, municipality and school district, so use the actual bill for the home you are buying.
Help with the down payment
Programs and income limits change often, so we do not list them here. Pennsylvania has a state housing finance agency with programs for buyers, and other help may come from your county or city. Talk to a HUD-approved housing counselor (1-800-569-4287) or ask lenders which state programs they offer.
Example: cash to close on a $350,000 home in Pennsylvania
The example uses a $350,000 home, $17,500 down (5%) and a $332,500 loan at 6.5%, with the same placeholder lender and title costs as our closing cost calculator, and Pennsylvania's effective property tax rate of 1.26% for the prepaid taxes and escrow. Before any of the state taxes in the table below, the closing costs come to $11,133 (3.2% of the price) and the cash to close is $28,633. The rows below show what the state's taxes could add.
| If the buyer pays | Extra | Closing costs | Cash to close |
|---|---|---|---|
| The contract puts none of the state tax on you The state holds both parties liable; the contract decides the split | $0 | $11,133 | $28,633 |
| You pay half of the state 1% tax How it is split is set by the contract, so confirm yours | $1,750 | $12,883 | $30,383 |
| You pay all of the state 1% tax Local tax would be extra | $3,500 | $14,633 | $32,133 |
These are illustrations, not quotes. Your lender, your title company and your county set the real amounts, and your Loan Estimate is the document to trust. Open this example in the closing cost calculator and change the numbers to match your offer. Add any state tax you will pay in its "Other" box. See how to read a Loan Estimate to check each line.
Questions to ask before you close in Pennsylvania
- Who pays the transfer or recording taxes under our contract, and what is the total including any county or local amount?
- Which of these taxes will appear on my Loan Estimate and Closing Disclosure, and in which section?
- What is the actual property tax bill for this home, and how will taxes be escrowed?
- Is any first-time buyer or down payment program available for this home and my income?
Keep going with the first-time home buyer guide, compare lender offers with the loan offer comparison calculator, and see the other state guides.
Sources
- Pennsylvania Department of Revenue: Realty Transfer Tax
- Tax Foundation: Property Taxes by State and County, 2026 (Census Bureau American Community Survey data)
- CFPB: Figure out how much you want to spend (typical closing costs of 2% to 5%)
Tax rules and rates change, and counties and cities can add their own, so confirm the amounts for your purchase with your lender, title company or attorney. Last reviewed September 2026. This is general information, not legal, tax or financial advice. Found something out of date? Tell us.