Pittsburgh Transfer Tax: What Buyers And Sellers Pay

Buying or selling a home in Pittsburgh? One closing cost catches many people off guard: the real estate transfer tax. You want to set a smart budget and avoid surprises on your Closing Disclosure. This guide breaks down how the tax works in the City of Pittsburgh and Allegheny County, who typically pays, and how to estimate your amount. You will also get a simple checklist so you can confirm your exact number before you sign. Let’s dive in.

What the transfer tax covers

Transfer tax is charged when real property changes hands. In Pennsylvania, the total tax you pay is the sum of several layers that may apply to your property. For a home inside Pittsburgh city limits, you will generally look at three layers: the Commonwealth of Pennsylvania, Allegheny County, and the City of Pittsburgh.

The exact rates and rules can change by ordinance. Your total is calculated at closing and shown on your settlement statement.

State, county, and city layers

Each government body sets its own rate. Your total transfer tax equals the sale price multiplied by the combined rate of all layers that apply.

• Pennsylvania state portion may apply statewide.
• Allegheny County adds a county portion.
• City of Pittsburgh adds a municipal portion for properties inside city limits.

Because rates can change, always verify the current numbers for your specific property address before you finalize your budget.

Where to confirm current rates

• Pennsylvania Department of Revenue for state rules and the statewide rate.
• Allegheny County Treasurer or Recorder of Deeds for the county portion.
• City of Pittsburgh Department of Finance for the city portion if the property is within city limits.
• Your title company or closing attorney for a written, transaction-specific estimate. They calculate and collect transfer tax at closing.

Who pays the tax

Legally, the tax is due on the transaction. Who actually pays at closing is set by your purchase agreement. It is a negotiable item.

• In some deals the seller pays all of it. In others the buyer pays, or the parties split it.
• Local practice can vary by neighborhood, price point, and market conditions.
• The Closing Disclosure will show the transfer tax line items and who was charged.

Ask your agent to confirm what is typical for your area, then make sure your contract clearly states who pays which portion. If you are unsure, have your title company produce a preliminary estimate early in the process.

How to calculate your transfer tax

The math is simple once you know the rates that apply to your property.

• Formula: Transfer tax = Sale price × (state rate + county rate + city rate, if applicable)
• Quick example: $250,000 × 0.02 = $5,000 total transfer tax at a combined 2 percent rate.

Below are sample calculations using illustrative combined-rate scenarios often seen in Pennsylvania. These are examples only. Confirm the actual Pittsburgh, Allegheny County, and Pennsylvania rates for your address before closing.

Example combined-rate scenarios

• Scenario A: 1.5 percent combined
• Scenario B: 2.0 percent combined
• Scenario C: 2.5 percent combined
• Scenario D: 3.0 percent combined

Sample transfer tax by sale price

Sale price: $100,000

• 1.5 percent → $1,500
• 2.0 percent → $2,000
• 2.5 percent → $2,500
• 3.0 percent → $3,000

Sale price: $250,000

• 1.5 percent → $3,750
• 2.0 percent → $5,000
• 2.5 percent → $6,250
• 3.0 percent → $7,500

Sale price: $500,000

• 1.5 percent → $7,500
• 2.0 percent → $10,000
• 2.5 percent → $12,500
• 3.0 percent → $15,000

Sale price: $750,000

• 1.5 percent → $11,250
• 2.0 percent → $15,000
• 2.5 percent → $18,750
• 3.0 percent → $22,500

Sale price: $1,000,000

• 1.5 percent → $15,000
• 2.0 percent → $20,000
• 2.5 percent → $25,000
• 3.0 percent → $30,000

Splitting the tax in your deal

• If the combined rate is 2 percent on a $250,000 sale and the seller pays all, the seller pays $5,000 at closing.
• If you agree to split 50/50, each side pays $2,500.

Exemptions and special cases

Some transfers may be exempt or treated differently. Your title company will confirm and collect any required paperwork.

• Transfers between spouses or incident to divorce may be exempt.
• Transfers to government entities or qualifying nonprofits may be exempt.
• Foreclosure or sheriff sales can follow different rules.
• Gifts or very low consideration transfers may require special documentation.

Note: First-time buyer programs are usually separate and are not the same as a transfer tax exemption. Ask your title company to verify program details.

Transfer tax vs recording fees

Transfer tax is separate from recording fees and other closing costs. On your Closing Disclosure, you may see separate lines for:

• Transfer tax
• Recording fees
• Title insurance premiums
• Lender fees and prepaid items
• Prorated property taxes
• Commissions

Each is calculated differently. Confirm that the transfer tax lines reflect the correct combined rate for your property’s location.

When and how it is paid

Transfer tax is typically collected by your settlement agent at closing. The title company then files the deed and remits the tax to the proper state, county, and municipal offices.

• Expect to see the exact dollar amounts on your Closing Disclosure.
• Review a preliminary Closing Disclosure early so you can budget with confidence.

Action checklist

1. Ask your agent what is typical in your neighborhood for who pays transfer tax.
2. Request a written estimate from your title company showing the calculation for your address and sale price.
3. Confirm any exemptions and provide documentation early.
4. Add the estimated transfer tax to your net proceeds worksheet or closing cost budget.
5. Double-check the final Closing Disclosure to ensure the amounts match your estimate before signing.

You deserve a smooth closing with no surprises. If you are planning a condo purchase, a loft sale, or a move between city and suburb, our team will help you confirm your exact transfer tax early and negotiate who pays it as part of a clear, confident plan. Reach out to schedule a quick review of your numbers and next steps with New City Pittsburgh.

FAQs

What is the real estate transfer tax in Pittsburgh?

• It is a tax charged when property changes hands, made up of state, county, and city layers that are added together for the property’s location.

Who usually pays the transfer tax in Allegheny County?

• Payment is negotiable and set by the purchase agreement. Some deals have the seller pay, others the buyer, or the parties may split it.

How do I estimate my transfer tax before closing?

• Multiply your sale price by the combined rate for your address. Ask your title company for a written estimate to confirm exact numbers.

Are any transfers exempt from the tax in Pennsylvania?

• Some may be, such as transfers between spouses, to certain nonprofits, or by foreclosure. Confirm eligibility and documentation with your title company.

Is transfer tax the same as recording fees and title insurance?

• No. Transfer tax is separate from recording fees, title insurance, lender costs, and other closing charges. Each appears separately on your Closing Disclosure.

Where can I confirm the most up-to-date rates?

• Check with the Pennsylvania Department of Revenue, Allegheny County Treasurer or Recorder of Deeds, the City of Pittsburgh Department of Finance, or your title company for a current quote.