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In Pennsylvania, the mortgage recording tax (mortgage registry tax) is:

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Question & Answer

Review the question and all answer choices

A

Not applicable

Correct Answer
B

1% of the debt amount

This option incorrectly suggests a 1% tax rate, which might reflect rates in other states but doesn't apply to Pennsylvania. Students often confuse Pennsylvania with neighboring states that do have mortgage recording taxes.

C

2% of the debt amount

This option suggests a 2% tax rate, which is higher than most states' rates and doesn't apply to Pennsylvania. This may reflect a misunderstanding of maximum tax rates in other jurisdictions.

D

Varies by county

This option incorrectly suggests variability by county, which might apply to other recording fees but not to Pennsylvania's mortgage recording tax (which doesn't exist).

Why is this correct?

Pennsylvania does not have a mortgage recording tax, though there are nominal recording fees.

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