Who Pays the Transfer Tax in Pennsylvania, and How Much Is It in Bucks County vs. Philadelphia?
Bucks Co. & Beyond Daily
Bucks Co. & Beyond Daily
by Nick Rau
In Pennsylvania, the buyer and seller usually split the realty transfer tax evenly, but that's a custom, not a law: your agreement of sale decides who pays, and the government can collect the full amount from either party. The rate is 2% of the property's value in Bucks County (1% state, 1% local) and 4.578% in Philadelphia (1% state, 3.578% city), so on the same $515,000 home the tax comes to $10,300 in Bucks and $23,576.70 in the city.
That gap starts at a creek. Poquessing Creek has marked the line between Philadelphia and Bensalem since 1682, and Somerton, up in the city's Far Northeast, borders both Bensalem and Lower Southampton, which means buyers shopping the Far Northeast and Bensalem often tour homes a few minutes apart that sit on opposite sides of a tax line. Philadelphia also raised its share on July 1, 2025, so older figures no longer apply. Here's what each side charges, who actually pays it, and how to budget for it so settlement day holds no surprises.
The Bucks County Recorder of Deeds puts it simply: there's a 2% transfer tax on the value of the property or interest being conveyed, with 1% going to the state and 1% to the municipality and school district, and it's paid when the deed is recorded. That value isn't necessarily the sales price. When a deed doesn't show the true value, such as a $1 gift, or when someone claims an exemption, the parties file the state's Statement of Value (form REV-183), and the value can be figured from the county assessment times the state's common level ratio factor. One practical change this year is that since January 2026 the Recorder's office no longer accepts personal checks for transfer tax, only cash in the office, a cashier's check, a money order or a credit card. In most sales your title or settlement company collects the tax at closing and pays it at recording, so you'll see it as a line on your settlement statement. It's a one-time cost, too, separate from the yearly tax bill I explained in my post on whether your property taxes go up when you buy in Bucks County.
Philadelphia stacks its own, larger local tax on top of the state's 1%. City Council's Bill No. 250211 raised the city's share from 3.278% to 3.578% for transactions on or after July 1, 2025, the first change since 2018, so the combined rate on the city's transfer tax page is now 4.578% of the sale price or assessed value, plus any assumed debt. The city says the increase funds affordable housing programs, including its H.O.M.E. (Housing Opportunities Made Easy) plan, which aims to build 30,000 affordable housing units across Philadelphia. The tax is due when the deed is presented for recording, with payment required within 30 days. Before July 1, 2025, the combined rate was 4.278%. The pay-by-mail section of the city's transfer tax page lists a 3.278% city share, while the rate shown at the top of that page is 4.578%.
Because prices vary from neighborhood to neighborhood, the cleanest comparison is one price on both sides of the creek. I'll use the same $515,000 home (the Bucks median) on both sides; $515,000 was the median sold price in Bucks County in September 2026, according to the Bucks County Association of Realtors' Local Market Insight report (Bright MLS data, calculated Oct. 8, 2026). At that price the total transfer tax is $10,300 in Bucks and $23,576.70 in Philadelphia, a difference of $13,276.70. If the buyer and seller split it evenly, as most agreements do, each side pays $5,150 in Bucks or $11,788.35 in the city, so each party keeps about $6,638 more on the Bucks side of the line.
None of that makes one side of the line the right answer, because a home is a lot more than its closing costs, and Somerton and Bensalem each have plenty going for them. But if you're torn between two houses a few minutes apart, the transfer tax is real money that stays in your pocket on the Bucks side, and if you're selling in the city, it's a cost you can build into your numbers from the first conversation instead of discovering it at settlement.
Here's the part most people get wrong: Pennsylvania law doesn't assign the tax to the buyer or the seller. The state regulation, 61 Pa. Code § 91.111, sets the 1% state tax and calls paying it "the joint and several legal duty of the parties," a duty they can divide however they agree, but without giving up the state's rights against either of them. The PA Department of Revenue says the same thing, that both grantor and grantee are jointly and severally liable. The Bucks County Recorder notes that state and local governments don't stipulate who pays, that most sale agreements divide it, and that the new owner is responsible if there's any question over the amount paid, while Philadelphia says the tax is usually split evenly but the city can collect 100% from either party. So the 50/50 split is a custom written into most agreements of sale, and like most terms in that agreement, it's negotiable.
Some transfers owe no tax at all. Bucks County and Philadelphia both list family transfers, such as between spouses, parents and children, grandparents and grandchildren, and brothers and sisters, as exempt, and Bucks also allows a one-time transfer between former spouses. Philadelphia requires documentation for every family exemption, and it notes that buying a property from an estate isn't exempt, for example when a home is left to several people and then sold to one of them. Exemptions turn on details, so confirm yours with a real estate attorney or tax professional before you count on one.
If you're shopping both sides of the line, I'd run every offer at the right rate for that address, 2% in Bucks and 4.578% in Philadelphia, and look at the transfer tax right next to the price, because on a $515,000 home the difference is more than $6,600 for each side. Before you sign, read the transfer tax paragraph in the agreement of sale so you know exactly how it's split, and ask your title company for an estimate early. The mistakes to avoid are the ones covered above: using the old 4.278% for Philadelphia, assuming the 50/50 split is the law, assuming the tax is always figured on the sale price, and assuming a family or estate transfer is exempt without checking. Rates and rules can change, so confirm the numbers for your own sale with your title company, a tax pro or a real estate attorney.
Who pays the transfer tax in Pennsylvania, the buyer or the seller?
By custom, the buyer and seller usually split it evenly, but no state or local law requires that. Your agreement of sale sets the split, and under 61 Pa. Code § 91.111 the parties are jointly and severally liable, so the tax can be collected from either one.
What is the transfer tax rate in Philadelphia in 2026?
It's 4.578%: 3.578% for the city plus 1% for the state, in effect since July 1, 2025. The old 4.278% rate no longer applies.
How much is the transfer tax in Bucks County, PA?
It's 2% of the property's value, 1% to the state and 1% to the municipality and school district, paid when the deed is recorded. On a $515,000 home that's $10,300, or $5,150 each if the buyer and seller split it.
Are transfers between family members exempt from transfer tax in PA?
Many are. Bucks County and Philadelphia both list transfers between spouses, parents and children, grandparents and grandchildren, and siblings as exempt, and Philadelphia requires documentation. Buying a home from an estate isn't automatically exempt in Philadelphia, so check with a real estate attorney first.
If you're weighing both sides of the line, my Bensalem guide and my Somerton guide cover each one up close, and you can compare more towns in my Bucks County town guides and Northeast Philadelphia neighborhood guides.
The transfer tax isn't the most exciting line on a settlement statement, but knowing it ahead of time is one of the easiest ways to walk into settlement relaxed, on either side of Poquessing Creek. I'm Nick Rau, President of Sales with the Rarity Real Estate Team, ranked in the Top 1% of agents nationally (RealTrends 2025, individual), with more than 135 Google reviews, and I live right here in Bucks County.
Rarity Real Estate Team, 1100 N Delaware Ave Suite A, Philadelphia, PA 19125 · (215) 593-7498 · [email protected]
Buying or selling in Bensalem, Somerton or anywhere in Bucks County? Call (215) 593-7498 or email [email protected].
Blog · Google · Zillow · Instagram @nickraure · Facebook · LinkedIn · X · Threads
File photo, not a specific home or sale. A picnic grove at Neshaminy State Park in Bensalem Township. Photo (cropped): Plefkag, CC0, via Wikimedia Commons.
Sources (checked Oct. 20, 2026): Bucks County Recorder of Deeds, Transfer Tax (2%: 1% state, 1% municipality and school district; value not necessarily the sales price; paid at recording; governments don't stipulate who pays; most agreements divide it; new owner responsible if any question; family exemptions and one-time former-spouse transfer; REV-183; no personal checks effective January 2026): https://www.buckscounty.gov/613/Transfer-Tax; PA Department of Revenue, Realty Transfer Tax (1%; grantor and grantee jointly and severally liable; family exemptions): https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/realty-transfer-tax; 61 Pa. Code § 91.111: https://www.pacodeandbulletin.gov/Display/pacode?file=/secure/pacode/data/061/chapter91/s91.111.html; PA DOR REV-183 Statement of Value: https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/rtt/documents/rev-183.pdf; City of Philadelphia, Realty Transfer Tax (4.578% = 3.578% city + 1% Commonwealth; usually split evenly, not a legal requirement; city may collect 100% from either party; due at recording, within 30 days; family exemptions; estate purchases not exempt): https://www.phila.gov/services/payments-assistance-taxes/taxes/property-and-real-estate-taxes/realty-transfer-tax/; City of Philadelphia, "Philly's Realty Transfer Tax rate is now 4.578%" (July 28, 2025; effective July 1, 2025; last adjusted 2018; funds H.O.M.E. plan, 30,000 units): https://www.phila.gov/2025-07-28-phillys-realty-transfer-tax-rate-is-now-4-578/; Philadelphia Bill No. 250211 (3.578% from July 1, 2025): https://files.amlegal.com/pdffiles/Philadelphia/250211.pdf; Bucks County Association of Realtors, Local Market Insight, September 2026 (median sold price $515,000; Bright MLS; calculated Oct. 8, 2026): https://www.bucksrealtor.com/clientuploads/PDFS/Market_Stats/2026/September_2026.pdf; Wikipedia, Poquessing Creek (Philadelphia-Bensalem boundary since 1682): https://en.wikipedia.org/wiki/Poquessing_Creek; Wikipedia, Somerton, Philadelphia (borders Bensalem, Lower Southampton and Lower Moreland): https://en.wikipedia.org/wiki/Somerton,_Philadelphia.
Want an agent who'll really listen to what you want in a home? Need an agent who knows how to effectively market your home so it sells? Give me a call! I'm eager to help and would love to talk to you.
