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1. What is the Real Estate Transfer Tax?

There is a State Tax and a Municipal Tax each amounting to 1% of the value of the property or interest being conveyed. The value could be the sale price or the fair market value of the property.

2. Who pays the Transfer Tax?

In most sales agreements, the seller and the buyer split the tax. However, the new owner is responsible if there is any question over the amount of tax paid. The Recorder of Deeds Office will not accept a deed unless the tax is paid at the time of recording. The State and Local Governments do not care who pays the tax as long as it is paid.

3. Are any transactions exempt?

Yes. Conveyances between husband and wife, parent and child, grandparent and grandchild, and brothers and sisters are exempt. A deed between ex-spouses is also exempted. There are also other exemptions that are allowed in certain situations. It is best to consult your attorney to find out what these exemptions are. For questions about transfer tax, you may contact the email resource account for the PA Department of Revenue Realty Transfer Tax division

   ra-bitrealtytransfertax@pa.gov.