Philadelphia Transfer Tax: 2026 Rate, Who Pays, and How to Calculate It

If you are selling a house in Philadelphia, the transfer tax is one of the biggest numbers on your settlement sheet after commission and your mortgage payoff. Here is what it costs right now, who usually pays it, and how to run the math on your own sale price before you list.

What is the Philadelphia transfer tax rate?

The Philadelphia realty transfer tax is 4.578% of the sale price. That is 3.578% to the City plus 1% to the Commonwealth of Pennsylvania, according to the City of Philadelphia. The City raised its portion from 3.278% to 3.578% effective July 1, 2025, so any sale recorded after that date pays the higher combined rate.

The tax is charged on the full consideration for the property. For a normal arm's-length sale, that is the sale price plus any debt the buyer agrees to take on. The City's own formula is simple: actual consideration times .04578 equals the tax due.

The City said its rate was last adjusted in 2018 before the July 2025 change. Rates are set by law and can change again, so confirm the current figure on phila.gov or with your title company before you sign anything.

Who pays transfer tax in PA, the buyer or the seller?

In Philadelphia, the buyer and seller usually split the transfer tax evenly, so each side pays about 2.289% of the price. That split is custom, not law. The City of Philadelphia notes it can collect 100% of the tax from either party, and the Pennsylvania Department of Revenue says the grantor and grantee are jointly and severally liable.

What that means in plain terms: your agreement of sale decides who pays what. Most Philadelphia resales close with an even split, but it is a line item you can negotiate like anything else.

A few situations where I see the split move:

• Seller concessions. A seller trying to land a deal may agree to pay all or part of the buyer's half.
• Competitive offers. A buyer trying to win a house with multiple offers sometimes offers to cover more of the tax.
• Builder contracts. New construction contracts are written by the builder's attorney and sometimes assign the tax differently than a resale would. Read that section before you sign, not at closing.

Because the City can collect from either side, buyers should make sure the full amount actually gets paid at settlement. Your title company handles this, but it is worth seeing it on the statement.

How do you calculate the Philadelphia transfer tax?

Multiply the sale price by 4.578% to get the total Philadelphia transfer tax, then divide by two if you are splitting it evenly. For a normal sale, the base is the contract price plus any debt the buyer assumes. For gifts and other non-sale transfers, the City uses the assessed value times a common level ratio instead.

Here is how to run it on your own number:

1. Start with your expected sale price. Use a realistic figure based on closed comps, not your list price wish. If you need one, my free home valuation is built from Bright MLS closed sales.
2. Multiply by 0.04578 to get the total tax.
3. Split it according to your contract. For a 50/50 split, divide by two.
4. Add your share to your net sheet alongside commission, payoff, and other closing costs.

Worked example (hypothetical numbers). Say you sell a rowhome in South Philadelphia for $350,000 with a standard even split:

Under the old 4.278% combined rate, the same sale would have carried $14,973 in total tax. The July 2025 increase added $1,050 to this deal, or about $525 per side.

On a $600,000 house, the total is $27,468, or $13,734 per side. That is real money, and it is why I put the transfer tax on every seller's net sheet before the house goes on the market.

How is the Philadelphia transfer tax different from the suburbs?

Outside Philadelphia, most of Pennsylvania pays a total transfer tax closer to 2%. The state charges 1%, and the Pennsylvania Department of Revenue says a local realty transfer tax of 1 percent, more in some localities, is also due. Philadelphia's 3.578% City rate is what pushes its combined total to 4.578%.

That difference matters if you are comparing a sale in the city with one across City Avenue on the Main Line or elsewhere in Montgomery County. Using the same hypothetical $350,000 price:

Local rates in the collar counties are set by the municipality and school district, and some charge more than 1%. Check the specific township or borough's rate with the county Recorder of Deeds before you rely on a number.

What transfers are exempt from Philadelphia transfer tax?

Some transfers are exempt, mainly certain transfers between close relatives, transfers through a will, transfers to government bodies, and transfers between religious organizations. The City of Philadelphia says family exemptions require documentation, and that buying a property from an estate is not exempt. A normal sale to an unrelated buyer is always taxed.

At a high level, the City and the Commonwealth list these kinds of transfers as exempt or excluded:

• Between close relatives: spouses, parents and children, grandparents and grandchildren, and siblings, including half siblings and legally adopted siblings, plus the spouses of those relatives. Proof of the relationship is required.
• Through a will or inheritance: property passed by will or intestate succession. The City notes tax can still be due if mortgages, liens, or debts are not paid at the transfer.
• To a government unit, and certain transfers between religious organizations.
• A refinance where the name on the title does not change.

What is not exempt is just as important. The City says nonprofit organizations are not exempt, and purchases out of an estate are taxed like any other sale. If an estate is selling your parent's house to an outside buyer, plan on the full tax.

Exemptions have specific conditions and paperwork. If you are counting on one, talk to a real estate attorney or your title company before the deed is drawn up. This is not tax or legal advice, and I do not want you finding out at the closing table that a transfer did not qualify.

When is the Philadelphia transfer tax paid?

The Philadelphia transfer tax is paid at closing, when the deed is recorded with the Department of Records. Your title company collects each side's share on the settlement statement and pays it at recording. The City says penalties of up to 50% of the tax can apply for misrepresenting a transaction or failing to record it.

For a seller, that means you never write a separate check to the City. Your half comes out of your proceeds at settlement. For a buyer, your half is part of the cash you bring to closing, so it belongs in your budget early. Our guide to closing costs in PA walks through the buyer side in more detail.

Does the transfer tax change whether I list or take a cash offer?

The transfer tax applies either way. A cash investor buying your house still triggers the same 4.578% in Philadelphia, and who pays it is negotiated in that contract too. Some cash offers advertise covering closing costs, so read whether that includes your half of the transfer tax before comparing offers.

This is why I do not compare a cash offer to a list price. I compare net to net. On my cash offer page, I put the cash number and a listed sale side by side, with the transfer tax, commission, repairs, and payoff written out on each, so you can see which one actually leaves more in your pocket. If you are leaning toward a fast sale, our article on how to sell your house fast in Philadelphia covers the trade-offs.

The bottom line on the Philadelphia transfer tax

Philadelphia's transfer tax is 4.578% of the sale price as of July 1, 2025, usually split evenly. Your half belongs on your net sheet from day one. Confirm the current rate on phila.gov, read who pays in your contract, and check exemptions with an attorney. The first conversation with me is about twenty minutes and costs nothing.