PA · #5 by population

Buying a home in Pennsylvania

Costs and rules that are specific to Pennsylvania. Main city: Philadelphia.

In short

Pennsylvania taxes property sales through its realty transfer tax, does not require an attorney at closing and requires a seller disclosure form. It forecloses through the courts and is not a community property state.

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If you buy

Pennsylvania state transfer tax

Realty transfer tax: 1% of the value of the property. Change the price: the amount is recalculated instantly.

Price$277,600
State transfer tax$2,776
Share of the price1% of the price
Who paysShared by buyer and seller

Default price: the Pennsylvania median value of owner-occupied homes, $277,600 (Census ACS 2024). Rule: 1% of the value of the real estate, including contracted-for improvements, plus assumed debt. For transfers with no sale price, such as gifts or foreclosures, the base is assessed value times the Department of Revenue's Common Level Ratio factor for the county. Plus Philadelphia's city share of 3.578% (since July 1, 2025), 4.578% in total with the state (City of Philadelphia). Who pays: The state holds seller and buyer jointly and severally liable. In Philadelphia the tax is usually split evenly but this is not required, and the city can collect 100% from either party; the contract decides the split. Not included: other county and city transfer taxes, recording fees, title insurance and lender charges. Pennsylvania transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Pennsylvania state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Pennsylvania in short

Is there a real estate transfer tax in Pennsylvania?

Pennsylvania's realty transfer tax is 1% of the value of the property, and counties and municipalities add a local tax. Philadelphia adds 3.578% for a total of 4.578%. Both buyer and seller are liable to the state, and in Philadelphia the tax is usually split evenly.

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How much is the state transfer tax on a $277,600 home in Pennsylvania?

On $277,600, the median value of owner-occupied homes in Pennsylvania (Census ACS 2024), the state realty transfer tax comes to $2,776 (1% of the value of the property). County and city taxes are not included.

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What closing costs does Pennsylvania law set?

Pennsylvania has no official typical closing-cost total. The realty transfer tax is 1% to the state plus local tax, 4.578% in Philadelphia ($11,610 on $253,600), usually split between buyer and seller, and Philadelphia charges $278.75 to record a deed.

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How is property tax calculated in Pennsylvania?

Pennsylvania's property tax is local, set by the county, municipality and school district. In Philadelphia the 2025 rate is 1.3998% of assessed value, and the Homestead Exemption removes $100,000 of assessed value, saving most owners up to $1,399 a year.

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What is the deadline to appeal a property tax assessment in Pennsylvania?

In Pennsylvania outside Philadelphia, appeal to the county board of assessment appeals by September 1 (or the county's date, no earlier than August 1. 40 days from a changed-assessment notice), and in Philadelphia appeal to the Board of Revision of Taxes by the first Monday in October.

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Do you need a real estate attorney to close in Pennsylvania?

In the Pennsylvania statutes and rules read, no law requires an attorney to close a home sale. Closings are commonly run by title insurance agents who hold a certificate of qualification from the Pennsylvania Insurance Department (Insurance Company Law of 1921, 724.1).

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What must a home seller disclose in Pennsylvania?

A Pennsylvania seller must give the buyer a signed, dated property disclosure statement before both sides sign the agreement of transfer (68 Pa.C.S. 7303). A buyer who proves a willful or negligent violation can recover actual damages if suing within 2 years after final settlement.

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How does foreclosure work in Pennsylvania?

Pennsylvania foreclosure is judicial: the lender files a civil action in court, after sending an Act 91 notice giving the homeowner 30 days plus 3 for mailing to meet a consumer credit counselor, and the borrower must be at least 60 days behind.

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What first-time home buyer programs does Pennsylvania offer?

In Pennsylvania, the Pennsylvania Housing Finance Agency (PHFA) offers a Keystone Advantage Assistance loan of up to 4% of the price or $6,000, whichever is less, and a K-FIT loan of 5% of the price or value forgiven over ten years.

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How much tax when you sell a home in Pennsylvania?

The federal rule is the same in Pennsylvania as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Pennsylvania income tax on the gain is not computed here.

Capital gains on a home sale

Pennsylvania guides

Philadelphia

Buying a home in Philadelphia, Pennsylvania

Professionals in Pennsylvania

All states · Federal guides