Look up Pennsylvania's realty transfer tax and you'll find a clean, reassuring number: 1%. On the statewide median sale price of $340,000, that's $3,400. Manageable.
That number is almost always wrong in practice. The 1% is the state's share only, and nearly every Pennsylvania municipality and school district levies its own realty transfer tax on top. In most of the state the local add-on lands around another 1%, making roughly 2% combined the everyday rule of thumb, or about $6,800 on that same $340,000 house. It isn't set by statute, so it changes at township lines.
Then there's Philadelphia, which charges 3.578% as a city tax on top of the state's 1%, for 4.578% combined. On a $340,000 sale, that's $15,565 in transfer tax alone. That single line item is larger than the midpoint of the entire statewide closing-cost range.
Pennsylvania is not a cheap state to close in. Buyer closing costs here average about 4.28% of the purchase price, 6th-highest in the country, and that excludes agent commissions. Below is where the state-specific money goes. For the mechanics of individual fees, see our full line-by-line breakdown of closing costs.
A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, municipality, lender, title company, and contract will all move the total. Local transfer tax rates are set municipality by municipality, so the only rate that matters is the one for the address you're buying. Your Loan Estimate and Closing Disclosure are authoritative. Use this to sanity-check them, not to replace them.
1. What closing costs actually run in Pennsylvania
A 3-5% range against Pennsylvania's $340,000 median sale price gives you roughly $10,200 to $17,000, midpoint around $13,600. Nudge the price to $350,000 and the same range becomes about $10,500 to $17,500.
The narrower sourced average for Pennsylvania buyers is 4.28%, which on $340,000 is $14,552 — above the midpoint, consistent with the state's 6th-highest ranking. Where you land inside the range turns mostly on two Pennsylvania-specific things: your local transfer tax rate, and whether an attorney is involved.
Closing costs are separate from your down payment. On a $340,000 purchase with 20% down, you finance $272,000 and put down $68,000. Add the $13,600 midpoint and you need about $81,600 in cash to reach the table. That's the number that surprises people.
See your all-in Pennsylvania closing costs2. The state transfer tax is only half the story
Pennsylvania's realty transfer tax is a tax on the transfer of the deed, collected at closing. The Department of Revenue's rate is 1% of the sale price — and that rate is a floor, not a ceiling. Municipalities and school districts almost universally impose their own realty transfer tax on the same sale, commonly adding about another 1%. That's why Pennsylvania agents quote "about 2%" without qualifying it. On a $340,000 home:
- State portion at 1%: $3,400
- Common combined rate of roughly 2%: $6,800
No statewide table makes this uniform. Two houses across the road from each other can carry different combined rates because they sit in different municipalities or school districts. Ask your agent or title company for the exact combined rate at the property address before you write an offer. It's one of the few closing-cost items that is fully knowable in advance and completely non-negotiable once known, and it's the reason Pennsylvania totals swing so widely — the same dynamic behind why transfer tax is the biggest state-to-state variable.
3. Philadelphia is a different math problem
If you're buying in the city, throw the 2% rule of thumb out. Philadelphia levies a 3.578% city realty transfer tax on top of the 1% state tax, for a combined 4.578%. On a $340,000 sale:
- City portion at 3.578%: $12,165
- State portion at 1%: $3,400
- Combined total: $15,565
Under the usual split custom, each side carries about half, or roughly $7,783 ($15,565 ÷ 2). Even split, the Philadelphia buyer's share alone exceeds the entire combined transfer tax bill in a typical 2% municipality. That's a five-figure item that changes what price you can afford, and the best argument for pricing transfer tax by address before you fall for a listing.
4. No mortgage recording tax, which genuinely helps
Here's the good news, and it's real. Pennsylvania has no mortgage recording tax. Several states charge a separate tax based on your loan size when the mortgage is recorded, on top of transfer tax on the sale price. Pennsylvania does not. County recorders charge only flat per-page fees, which are small and predictable.
It's also why refinancing here is comparatively cheap: no sale means no transfer tax, and no mortgage tax on the new loan either. At current rates of 6.65% on a 30-year fixed or 5.95% on a 15-year, the government-fee side of a Pennsylvania refinance is not what you need to worry about.
5. Who closes your loan, and why it varies across the state
Pennsylvania is not an attorney-required state. No law says a real estate attorney must attend your closing, and across much of western and central Pennsylvania title or escrow companies handle it alone. But custom varies by region, and in Philadelphia and eastern Pennsylvania attorney involvement is common enough that you should expect it to come up.
- Title company only: you pay title insurance, a settlement or closing fee, and recording fees, with no separate attorney line.
- Attorney involved: add their fee on top. It's one reason two Pennsylvania buyers at the same price see different totals.
Neither is automatically better. An attorney reviewing your contract is genuine value on a complicated purchase, a distressed sale, or a messy title; on a straightforward deal with a competent title company, many buyers skip it. What you shouldn't do is discover late that your side of the state expects one. Title insurance itself works the same here as everywhere — see what title insurance actually covers and who it protects.
6. Who pays what, and what's negotiable
By Pennsylvania custom, realty transfer tax is split between buyer and seller. At a combined 2% rate on a $340,000 home that's about $3,400 apiece, since half of $6,800 is $3,400.
"Custom" is the key word: the split is a contract default, not a legal requirement. In a buyer's market you can ask the seller to carry more. On a contested listing, offering to absorb the full transfer tax is a lever some buyers pull instead of raising price, because it costs the seller real money and doesn't touch the appraisal.
Beyond transfer tax, the picture is the same as anywhere: lender fees have room in them, third-party services you choose can be shopped, government fees and prepaids are fixed. See which fees you can push back on and which you can't.
7. How to lower the bill before you sign
- Get the exact combined transfer tax rate for the address. In a 2% municipality your half on a $340,000 home is about $3,400. In Philadelphia it's about $7,783. Knowing which you're in is worth more than every fee negotiation combined.
- Shop lenders, not just rates. Origination and underwriting charges vary between lenders on identical loans.
- Ask for a seller credit. The transfer tax split already puts a shared cost on the table, which makes credits a natural part of the conversation here.
- Check your Loan Estimate against your Closing Disclosure. Some items may change between the two and some may not; how to read a Loan Estimate line by line covers the tolerances.
And don't underestimate prepaids: property tax and insurance escrow funding is real cash due at closing, covered in how escrow accounts get funded.
Frequently asked questions
How much are closing costs in Pennsylvania?
At the statewide median sale price of $340,000, a 3-5% range works out to about $10,200 to $17,000, midpoint near $13,600. Pennsylvania buyers average about 4.28%, or $14,552 at that price — the 6th-highest average of any state, excluding agent commissions.
Is Pennsylvania's transfer tax really only 1%?
Not in practice. The 1% is the state's share. Almost every municipality and school district adds its own realty transfer tax on top, commonly around another 1%, making roughly 2% combined the usual assumption. The local portion isn't set by statute, so the only reliable rate is the one for the specific address.
Why is Philadelphia so much more expensive to close in?
Philadelphia charges a 3.578% city realty transfer tax in addition to the 1% state tax, for 4.578% combined. On a $340,000 sale that's $15,565, of which $12,165 is the city portion. Split by custom, each side pays roughly $7,783.
Does the buyer or the seller pay transfer tax in Pennsylvania?
Customarily it's split. At a combined 2% rate on a $340,000 home, that's about $3,400 each. The split is a contract default rather than a legal rule, so either side can negotiate to carry more or less.
Do I need a lawyer to close on a house in Pennsylvania?
Not legally. Pennsylvania is not an attorney-required state, and title or escrow companies handle closings on their own across much of it. Attorney involvement is customary in Philadelphia and eastern Pennsylvania, so budget for that fee if you're buying there.
Does Pennsylvania charge a mortgage recording tax?
No. Pennsylvania has no mortgage recording or intangible tax. County recorders charge only flat per-page recording fees, so your loan size doesn't drive a percentage-based government charge the way it does in some other states.
Are closing costs part of my down payment?
No, they're separate and both are due at closing. On a $340,000 Pennsylvania home with 20% down, you finance $272,000 and bring $68,000 down plus roughly $13,600 in closing costs at the midpoint, for about $81,600 in cash. See also ways to reduce what you bring to closing.
What to do next
Put your actual purchase price into Pennsylvania's payment calculator, which builds in the state's property tax and insurance averages so you see an all-in monthly figure, not just principal and interest. Then work backward from the cash you have, using 2% as your transfer tax assumption (or 4.578% in Philadelphia) until you confirm the local rate.
- Pennsylvania mortgage payment calculator
- Pennsylvania affordability calculator
- Pennsylvania first-time buyer calculator
- How to buy a home in Pennsylvania
- First-time home buyer programs explained
Every figure on this site is sourced and dated, and you can see where each one comes from on our methodology page.
The figures above are illustrations drawn from CalculatorByState's sourced dataset. They are statewide averages, not county-level quotes, and Pennsylvania's local realty transfer tax rates in particular vary from one municipality to the next. Your own costs depend on your address, lender, title company, and contract. For advice specific to your situation, consult a licensed real estate professional, mortgage lender, or attorney in Pennsylvania.