The Tax Follows the Deed, and You Record Two
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
The rate is easy to look up. What almost nobody points out is how many times a single household move triggers it.
Read the trigger, not the rate
The Pennsylvania Department of Revenue: Pennsylvania realty transfer tax is imposed at a rate of 1 percent on the value of real estate, including contracted-for improvements to property, transferred by deed, instrument, long-term lease or other writing.
The taxable event is the transfer of real estate. It is not a per-household charge, not a per-move charge, and not something you pay once and finish with.
A move-up is two transfers
Lay out what actually gets recorded.
- You buy the next home. A deed transfers that property to you. Taxable transfer one.
- Later, your old home sells. A deed transfers that property to a buyer. Taxable transfer two.
Both are ordinary transfers of Pennsylvania real estate, and the Department's language reaches both. The commonwealth's 1 percent applies to each, and each is often joined by an additional local realty transfer tax collected at the same time by the county Recorder of Deeds.
By custom the burden is frequently shared between the parties on each side, and that is a matter for your agreement rather than for us. The point here is the count, not the split.
What that does to the structure choice
| Structure | Deeds recorded | Transfer tax events |
|---|---|---|
| Carry both payments, recast after the sale | Purchase, then sale | Two |
| Borrow against the departing home's equity | Purchase, then sale | Two |
| Keep the departing home and rent it | Purchase only | One |
The rental route removes an entire taxable transfer. That is not a reason to keep a house you want to sell, because you also forgo the proceeds that retire a bridge or fund a recast. It is a reason to run the comparison properly rather than assuming the structures cost the same. See the structures page and the rental conversion page.
Why this page has no local rate on it
The Department says an additional local realty transfer tax is often collected, and that locals have the option to share their realty transfer tax among school districts and municipalities. It does not publish those rates on its realty transfer tax page.
Pennsylvania local rates differ by municipality and school district, and some are well above the state's 1 percent. We have not verified any of them, so none appears here. Your closing agent or the county Recorder of Deeds will give you the exact figure for the parcel, and that is the number to put in your estimate.
A published-but-stale rate would be worse than none, particularly on a tax that scales with the price of a house.
One category worth asking about
The Department's wording includes real estate transferred by long-term lease. That is a defined category in the tax law, and an ordinary residential tenancy is a different thing.
We are not going to state a threshold, because we have not verified one. If you are converting your departing home to a rental and the arrangement is anything other than a conventional residential tenancy, ask your attorney whether the lease itself reaches that category. It is a short question and the answer is better obtained before signing than after.
How far apart states are on this
Oregon prohibits it entirely. ORS 306.815(1) says its cities, counties, districts and other political subdivisions shall not impose a tax or fee upon the transfer of a fee estate in real property, or measured by the consideration paid or received.
Pennsylvania charges 1 percent at state level and permits a local charge on top of it. A closing-cost estimate built for one state tells you almost nothing about the other. See the Pennsylvania guide.
Frequently asked questions
What triggers Pennsylvania realty transfer tax?
A transfer of real estate. The Department of Revenue states the tax is imposed at 1 percent on the value of real estate transferred by deed, instrument, long-term lease or other writing, so the taxable event is the transfer rather than the household's move.
Why does a buy-before-you-sell pay it twice?
Because it contains two transfers. A deed transfers the new home to you, and later a deed transfers your old home to a buyer. Each is a separate taxable transfer, and each carries the state 1 percent plus any local realty transfer tax.
Which structure avoids one of the transfers?
Keeping the departing home as a rental. It records only the purchase deed, so one taxable transfer instead of two. The trade is that you forgo the sale proceeds that would retire a bridge loan or fund a recast.
Why does this site not list local Pennsylvania transfer tax rates?
Because they vary by municipality and school district and are not published on the Department's realty transfer tax page. We have not verified them, and a stale published rate would be worse than none on a tax that scales with the price of a house. Ask your closing agent or the county Recorder of Deeds.
Does a lease trigger Pennsylvania realty transfer tax?
The Department's wording reaches real estate transferred by long-term lease, which is a defined category rather than an ordinary residential tenancy. We do not state a threshold because we have not verified one. If your arrangement is unusual, ask your attorney before signing.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Pennsylvania realty transfer tax is collected by county Recorders of Deeds and local rates vary by municipality and school district; your closing agent, your CPA or a Pennsylvania attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.