A first-time buyer is considering purchasing a property just outside Philadelphia city limits in Delaware County versus one inside Philadelphia. Both properties are priced at $275,000. The Delaware County total rate is 2% and Philadelphia's is 4.278%. How much would the buyer save on their half of the transfer tax by purchasing in Delaware County?
Correct Answer
B) $3,133
Philadelphia total tax = $275,000 × 4.278% = $11,764.50. Buyer's half = $5,882.25. Delaware County total tax = $275,000 × 2% = $5,500. Buyer's half = $2,750. Savings = $5,882.25 - $2,750 = $3,132.25 ≈ $3,133.
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More Pa Transfer Taxes Questions
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- → A homeowner in Philadelphia converts their primary residence to a rental property and then sells it two years later. The transfer tax rate in Philadelphia remains 4.278% regardless of property use. Does the conversion to rental affect the transfer tax?
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Previous Question
A property in Philadelphia sells for $180,000 with a total 4.278% transfer tax rate. The buyer pays their half and the seller pays their half. What is the buyer's share?
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An investor buys a multi-unit property in Philadelphia for $1,500,000. The total transfer tax rate is 4.278%. The contract stipulates the buyer pays the full transfer tax. What is the buyer's total transfer tax obligation?