Run a Pennsylvania seller net sheet during the client conversation

Seller guide

Understanding Closing Costs & Net Proceeds in Pennsylvania

Pennsylvania uses a two-tier realty transfer tax: a flat 1% state tax plus a local portion that varies dramatically by municipality. Sellers customarily split the total 50/50 with the buyer, so a typical PA seller budgets around 1% of sale price for transfer tax outside the biggest cities — but Philadelphia and Allentown are exceptionally high and worth modeling carefully. Pennsylvania does not require an attorney at closing; settlement is normally handled by a title company.

Key local custom breakdown

• State + local transfer tax: Pennsylvania's 1% state realty transfer tax is joined by a local (county/municipal) portion. Local rates vary by municipality and school district. Philadelphia's combined rate is 4.578% (3.578% city + 1% state) and Allentown is 2.5% as of Jan 1, 2026 — confirm your exact municipality.
• 50/50 split custom: By long-standing Pennsylvania custom, the total transfer tax is split 50/50 between buyer and seller — so the seller line item is roughly half the combined rate. It's customary rather than statutory and can be renegotiated in the agreement of sale.
• Title insurance & attorney: The buyer customarily pays for owner's title insurance in Pennsylvania. No attorney is legally required at closing — settlement is handled by a title company — though sellers may hire one for complex transactions.

How the Pennsylvania transfer tax is calculated

Seller's Transfer Tax = Sale Price × 0.005  (half of PA's 1% state tax, 50/50 split)

Frequently asked questions (Pennsylvania real estate)

Why do Philadelphia sellers pay so much more in transfer tax than the rest of Pennsylvania?

Philadelphia layers a 3.578% city realty transfer tax on top of Pennsylvania's 1% state tax, for a combined rate of 4.578% of sale price — the highest in the state. Customarily this combined tax is split 50/50 between buyer and seller, so a Philadelphia seller typically pays about 2.289% of the sale price in transfer tax alone. By contrast, local rates elsewhere in Pennsylvania vary by municipality and school district, so confirm the exact combined rate for your address; Allentown's is 2.5% as of Jan 1, 2026.

Is Pennsylvania's real estate transfer tax split 50/50 between buyer and seller?

Yes — by long-standing Pennsylvania custom, the state's 1% realty transfer tax and any local (county or municipal) transfer tax are split 50/50 between buyer and seller at closing, so the seller's default share is 0.5% of the state portion. The split is customary rather than statutory, so it can be negotiated in the purchase agreement, but the 50/50 default is what almost every PA agreement of sale specifies.

Do I need an attorney to sell a house in Pennsylvania?

No. Pennsylvania does not require an attorney to close a residential real estate sale — settlement is typically handled by a title company, not an attorney. Sellers may still choose to hire an attorney for complex transactions (estates, disputes, unusual title issues), but for a standard PA home sale it is optional and not a required closing cost.

Agents: turn this estimate into a client-ready seller proceeds report with your name and brokerage on it.