Closing costs by state
Closing costs in Pennsylvania
Closing costs in Pennsylvania run about 2% to 5% of the price for a buyer, made of lender fees, title and settlement, recording, prepaid interest and escrow reserves; on a $400,000 home the worked example below comes to $13,555. Pennsylvania charges a state transfer tax of 1% of the value of the real estate (state realty transfer tax), about 1% of the price, and it is customarily split between buyer and seller. Nearly every municipality and school district adds a combined local tax of at least 1%, so 2% total is typical. Philadelphia's city portion is 3.578% from July 1, 2025 (4.578% total); Pittsburgh's local rate is reported at 4% (5% total).
Last verified ·Sources:pa.gov·phila.gov·macdonaldillig.com
The rules
What Pennsylvania does differently
- State transfer tax
- 1% of the value of the real estate (state realty transfer tax) (about 1% of the price at $400,000).
- Who pays it
- Split between buyer and seller.
- County and city add-ons
- Nearly every municipality and school district adds a combined local tax of at least 1%, so 2% total is typical. Philadelphia's city portion is 3.578% from July 1, 2025 (4.578% total); Pittsburgh's local rate is reported at 4% (5% total).
- Attorney at closing
- Pennsylvania does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Owner’s title policy
- The buyer customarily pays for the owner’s title insurance policy in Pennsylvania, along with the lender’s policy.
- Notes
- Grantor and grantee are jointly and severally liable by statute; the 50/50 split is custom. On a $400,000 sale the state tax is $4,000, normally $2,000 each side, plus the local 1%. Title companies and settlement agents conduct closings.
- pa.gov — “Pennsylvania realty transfer tax is imposed at a rate of 1 percent on the value of real estate”
- phila.gov — “The City portion of the transfer tax rate is now 3.578%. It was previously 3.278%.”
- macdonaldillig.com — “The tax is customarily split evenly between the seller and the buyer, but the parties may agree on other arrangements.”
Worked example
A $400,000 home in Pennsylvania, 20% down
Loan of $320,000 at 6.5%, closing on the 15th. Lender, title and recording figures are typical line items used for illustration, the same on every state page; the transfer tax and the owner’s policy side follow Pennsylvania’s rules above. Not a quote: the calculator takes your own figures.
Buyer pays
| Loan origination, 1% of the loan | $3,200 |
| Appraisal | $550 |
| Title and settlement services | $1,800 |
| Lender’s title policy | $900 |
| Recording | $150 |
| Prepaid interest, 15 days at 6.5% | $855 |
| Escrow reserve, 3 months of tax at 1.1% | $1,100 |
| First year of homeowners insurance | $1,500 |
| Owner’s title policy (estimate) | $1,500 |
| Transfer tax, buyer’s share (0.5%) | $2,000 |
| Total (3.389% of price) | $13,555 |
Seller pays
| Commission, 5% | $20,000 |
| Title and escrow fees | $2,000 |
| Prorated property tax | $1,500 |
| Transfer tax, seller’s share (0.5%) | $2,000 |
| Total | $25,500 |
Questions
What people ask about Pennsylvania
- Who pays the transfer tax in Pennsylvania?
- Pennsylvania charges a state transfer tax of 1% of the value of the real estate (state realty transfer tax), about 1% of the price, and it is customarily split between buyer and seller. Nearly every municipality and school district adds a combined local tax of at least 1%, so 2% total is typical. Philadelphia's city portion is 3.578% from July 1, 2025 (4.578% total); Pittsburgh's local rate is reported at 4% (5% total).
- Do you need an attorney to close on a house in Pennsylvania?
- Pennsylvania does not require an attorney at closing; a title or escrow company usually conducts it, and an attorney is optional.
- Who pays for the owner’s title policy in Pennsylvania?
- The buyer customarily pays for the owner’s title insurance policy in Pennsylvania, along with the lender’s policy.
- How much are seller closing costs in Pennsylvania?
- On a $400,000 sale with a 5% commission, the worked example on this page comes to $25,500 for the seller, including $2,000 of transfer tax, before the mortgage payoff and any concessions or repairs. The seller net sheet calculator shows the walk-away figure.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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