If you’re buying or selling a home in Greater Pittsburgh, realty transfer tax is one of the biggest closing costs, and it surprises a lot of people. Pennsylvania has one of the highest transfer taxes in the country, and the City of Pittsburgh’s rate is among the highest in the state.
How Pennsylvania realty transfer tax works
Pennsylvania charges a 1% state realty transfer tax on most sales. Local municipalities and school districts add their own tax on top. The total depends on where the property sits.
| Location | Total rate | On a $355,000 home |
|---|---|---|
| City of Pittsburgh | 5% (1% state + 3% city + 1% Pittsburgh School District) | $17,750 |
| Most Allegheny, Butler and Westmoreland County municipalities | 2% (1% state + 1% local) | $7,100 |
| Murrysville | 2.5% | $8,875 |
The city raised its share in 2020, bringing the total inside city limits to 5%. A handful of suburban municipalities also differ from the typical 2%, so we confirm the exact rate on every property.
Who pays it?
By custom in Western Pennsylvania, the buyer and seller split the transfer tax 50/50. On a $355,000 home in a 2% suburb, that’s about $3,550 each. Inside the city, it’s about $8,875 each.
The split is negotiable. In a competitive situation, a buyer might offer to pay more of it; a motivated seller might cover it all. Whatever you agree to goes in the Agreement of Sale.
Why it matters when you’re choosing where to buy
The difference between buying just inside or just outside the city line can be several thousand dollars at closing. It isn’t a reason on its own to pick a neighborhood, but it belongs in your budget. City residents also pay a 3% local earned income tax, compared with roughly 0.5% to 2% in most suburbs.
Are there exemptions?
Some transfers are exempt, such as certain transfers between family members, to a spouse, or into a living trust. Those rules are specific, so talk with your attorney or title company if you think one applies.
Plan your full cost to close
Transfer tax is only one piece. Our free buyer’s and seller’s guides walk through every closing cost with Pittsburgh examples, plus a sample net sheet for sellers.
Questions? Call The EZ Home Network at 724-933-8500. We’ll show you the exact transfer tax and property taxes on any home before you make an offer.
This article is general information, not legal or tax advice.