How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

From what I understand the standard real estate transfer tax

Customer Question

From what I understand the standard real estate transfer tax in Pa. is 2% of purchase price. I am ready to settle on a property in Monroe County Pa (internet settlement ). The title company is asking for the standard 2% x 4.57 % stating this is pa law. Purchase price is $27,750.00 (bank owned -listed as traditional sale -paying cash). What is the transfer tax due on this sale?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Please see here for reference

http://www.revenue.pa.gov/GeneralTaxInformation/Tax%20Types%20and%20Information/Pages/Realty-Transfer-Tax.aspx#.VmD_-5WFPIU

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. Both grantor and grantee are held jointly and severally liable for payment of the tax.

Pennsylvania realty transfer tax is collected, often along with an additional local realty transfer tax, by county Recorders of Deeds. The Recorders of Deeds remit the commonwealth's 1 percent to the Department of Revenue, and the locals have the option to share their realty transfer tax among school districts and municipalities.

So - on that transaction - the transfer tax is imposed 1% state and 1% local - total 2% of the purchase price.

It is very common practice that the transfer tax is divided equally between the buyer and the seller.

Please communicate with your real estate agent.

Expert:  Lev replied 1 year ago.

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

Related Tax Questions