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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29574
Experience:  Taxes, Immigration, Labor Relations
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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

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.

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