Pennsylvania's real estate transfer tax rate is:
Question & Answer
Review the question and all answer choices
1% (split between state and local)
Option A is incorrect because it suggests a 1% total rate, which is half of Pennsylvania's actual 2% transfer tax. This misconception may arise from confusing the state portion alone with the total tax.
2% (1% state, 1% local typically)
3%
Option C is incorrect because Pennsylvania does not impose a 3% transfer tax. This rate would be unusually high compared to most states and doesn't reflect Pennsylvania's actual tax structure.
4%
Option D is incorrect because a 4% transfer tax rate doesn't exist in Pennsylvania. This rate would be among the highest in the nation and doesn't match the state's established tax structure.
Why is this correct?
Answer B is correct because Pennsylvania imposes a 2% total transfer tax, which is split equally between the state (1%) and local municipalities (1%). This dual structure is a defining characteristic of Pennsylvania's real estate transfer tax system.
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