Pennsylvania real estate: property tax, closing costs & insurance
Pennsylvania splits its 1% real estate transfer tax evenly between a 0.5% share retained locally and a mandatory 0.5% state remittance, with Philadelphia adding a substantially higher local rate on top.
Property tax in Pennsylvania
The effective rate runs about 1.49% of assessed value. County CLR ratios vary widely; Philadelphia 1.3998%.
Transfer tax & closing costs
State 1% + local 1% (Philadelphia local 3.278% → 4.278% total), customarily split. Recording runs a flat $250. Title insurance is customarily paid by the buyer, with a minimum owner’s premium of $500.
Insurance & capital gains
Flat 3.07%; Philadelphia wage/NPT adds.
Worked example: a $350,000 ARV flip in Pennsylvania
Six-month hold, $45,000 rehab, 15% target profit margin, all-cash. This is the same reverse waterfall the calculator runs — see it live for your actual property.
- After-repair value$350,000
- Rehab budget−$45,000
- Closing costs — acquisition−$5,875
- Closing costs — disposition−$21,900
- Holding costs, 6 months−$3,313
- Target profit, 15%−$52,500
- Maximum Allowable Offer$221,412
If you’re investing
Philadelphia’s combined transfer tax (state 1% + city 3.278%, roughly 4.278% total, customarily split between buyer and seller) is dramatically higher than the Pennsylvania statewide baseline — always confirm whether a deal is inside city limits before pricing closing costs.
If this is your home
Pennsylvania county Common Level Ratios vary widely, so the same nominal millage rate can produce very different effective tax bills county to county — check your specific county’s CLR rather than assuming a statewide average applies.
Best suited for: Investors outside Philadelphia who want the lower statewide transfer-tax baseline.
Pennsylvania FAQ
What is the Pennsylvania real estate transfer tax rate?+
The statewide rate is 1% of the sale price, split 0.5% to the state and 0.5% to the local municipality/school district, customarily divided evenly between buyer and seller — Philadelphia adds a much higher local rate on top.
See the exact number for your Pennsylvania property
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Other state guides
Sources: state and county assessor publications, state department of revenue transfer-tax schedules, and title-rate manuals filed with each state’s insurance regulator, effective 2025-01-01. Figures are estimates for planning purposes, not tax or legal advice — confirm with a licensed professional before closing. How the calculator works