Guide to Realty Transfer Taxes

Allegheny County Seal

Real estate sold in Allegheny County is subject to both state and local realty transfer taxes. The tax is based on a percentage of the sales price. It is the duty of the party recording the deed to purchase state and local realty transfer taxes when he or she records the deed. This guide is provided to the public to assist you in determining the amount of transfer taxes due to the state and the various municipalities and school districts in Allegheny County.

Example #1:
House in
Shaler Twp
Sells for
$40,000.00
State Tax 1% - $400.00
Shaler Twp. % - $200.00
Shaler Area School District % - $200.00 TOTAL Realty Transfer Tax $800.00

Example #2:
House in the
City of Pittsburgh
Sells for
$40,000.00
State Tax 1% - $400.00
City of Pittsburgh 2% - $800.00
Pittsburgh School District 1% - $400.00 TOTAL Realty Transfer Tax $1,600.00

The Department of Real Estate is the agent for the collection of State Realty Transfer Taxes on all property sold in Allegheny County. The Department of Real Estate is also agent for the collection of all Local Realty Transfer Taxes (municipal and school) on all property sold in Allegheny County. There are certain transactions, which are exempt from transfer taxes for example, a transfer between parent and child is exempt from both state and local transfer taxes.

  • Mother sells house to daughter for $40,000 No realty transfer taxes are owed.
  • Mother sells house for $1.00 No realty transfer taxes are owed.

There are other exemptions. It is best to consult with an attorney or the PA Department of Revenue at 717-783-8104 to determine what these exemptions are.

If a deed does not have a real selling price on it, or it has a minimum price ($1.00 or $99.00), then the party recording the deed must fill out a "Statement of Value." These statements are available in the Department of Real Estate and online on the Tax Forms web page. On the statement, you must disclose the actual selling price and the fair market value of the property. You must purchase state and local realty transfer taxes in accord with the selling price or fair market value listed on the statement of value. If the transfer is exempt from Realty Transfer Tax, the exemption must be explained on the statement of value.

Important

A deed will not be accepted for recording unless:

  • the correct realty transfer tax is purchased; or
  • the deed is accompanied by a statement of value explaining the true sales price or value or citing a specific exemption in the law which allows it to be recorded without paying realty transfer taxes.

The only exemption to this rule is for certain transfers between family members (see State Regulations). In these cases, a statement on the deed describing the relation of the parties is necessary and a statement to the effect "THIS IS A FAMILIAL TRANSFER AND EXEMPT FROM REALTY TRANSFER TAX" will suffice.

The following listing is intended to help you compute the realty transfer tax due on the sale of a property. Remember for each transaction, state and local realty transfer taxes are due or a statement of value must accompany the deed citing the reason why the deed is exempt from such tax.

Make your check payable to the Department of Real Estate for STATE REALTY TRANSFER TAXES (Commonwealth of PA) 1% of sale price and LOCAL REALTY TRANSFER TAXES. Only one check is necessary for Realty Transfer Taxes.