Philadelphia is both a city and a county in Pennsylvania. Real estate transfers in Philadelphia are subject to the Philadelphia City & County realty transfer tax of 3.278% plus the Pennsylvania state realty transfer tax of 1%, for a combined total of 4.278%. The Philadelphia city rate increased effective July 1, 2025 to 3.578%, bringing the combined total to 4.578%. The tax is calculated on the full consideration paid for the property.
In Philadelphia, the realty transfer tax is typically split equally between buyer and seller (each paying half of the total) unless otherwise negotiated in the purchase contract. Either party may pay the full amount by agreement. Buyers and sellers should confirm responsibilities with their real estate attorney or title company, as the split arrangement is common but not legally required.
Certain Philadelphia real estate transactions may be exempt from the realty transfer tax. Common exemptions include transfers between certain family members, transfers to qualifying governmental entities, certain corporate reorganizations, and transfers where the consideration is $100 or less. Consult a Pennsylvania real estate attorney to determine whether your transaction qualifies for an exemption.