Pennsylvania Realty Transfer Tax

The Realty Transfer Tax is a joint and several tax all parties to a transaction are responsible to pay on a transfer of real estate in Pennsylvania.  The tax rate is one percent for the state and one percent for the local portion (however, some of the larger localities charge a higher rate).  Traditionally, the payment is split with one party paying the state portion and one the local.  The parties to the real estate transaction are free to negotiate who will pay what portion, but both remain fully responsible for the payment of the tax due.

There are many excluded real estate transactions under state law.  This means that all parties to the transaction have been defined as excluded by statute and, therefore, there is no Realty Transfer Tax owed as a result of the transaction.

To determine if your proposed real estate transaction is excluded from the Pennsylvania Realty Transfer Tax, contact Dimond Law Office.