Buy Your Next Pennsylvania Home Before This One Sells
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
Most Pennsylvania transfer tax writing explains the rate. Almost none of it points out that a move-up pays it on two deeds rather than one.
The part nobody says out loud
The Pennsylvania Department of Revenue describes the tax plainly: realty transfer tax is imposed at a rate of 1 percent on the value of real estate, including contracted-for improvements to property, transferred by deed, instrument, long-term lease or other writing. It is collected, often along with an additional local realty transfer tax, by county Recorders of Deeds.
Read the trigger carefully. The tax attaches to a transfer of real estate, not to a household's move.
A buy-before-you-sell contains two transfers. You take a deed on the new house, and later you give a deed on the old one. Each is its own taxable event, and each time the commonwealth's 1 percent is often joined by a local rate.
That is obvious once stated and almost never stated. Full detail on the transfer tax page.
Which means the structures do not cost the same
| Structure | Deeds recorded | Transfer tax events |
|---|---|---|
| Carry both payments, recast after the sale | Two: the purchase, then the sale | Two |
| Borrow against the departing home's equity | Two: the purchase, then the sale | Two |
| Keep it and rent it | One: the purchase only | One |
Not selling is not free, because you also forgo the proceeds. But in Pennsylvania the rental route removes a whole taxable transfer, and that is a larger saving here than in a state where transfers are cheap or, as in Oregon, prohibited outright. See the structures page.
On local rates, and why we do not publish one
The Department says an additional local realty transfer tax is often collected, and that locals have the option to share their realty transfer tax among school districts and municipalities. It does not publish a rate table there.
Local rates vary by municipality and school district, and some Pennsylvania jurisdictions are well above the state 1 percent. We have not verified those figures, so we will not repeat them. Your closing agent or the county Recorder of Deeds will give you the exact rate for the parcel in about a minute, and that number is the one that belongs in your estimate.
The contrast worth knowing
If you are comparing Pennsylvania with another state, the spread is wide. Oregon's ORS 306.815(1) prohibits its cities, counties and districts from imposing any tax or fee on the transfer of a fee estate in real property. Pennsylvania charges 1 percent at state level and permits a local charge on top.
Same transaction, opposite treatment. National rules of thumb about closing costs are close to useless across that gap.
The market is the easy part here
Every Pennsylvania metro we track rose year over year as of August 2026. Lewisburg led at 5.6%, then Lebanon at 5.2%, Selinsgrove 5.1%, Bloomsburg 4.7% and Lancaster 4.5%. Philadelphia, the largest market, rose 2.5% to $389,524. The slowest was East Stroudsburg at 1.7%, still positive.
Nothing was falling. That matters because bridge structures tier reserve requirements against expected marketing time, and rising values shorten it. Pennsylvania currently sits at the friendlier end of that conversation. See the move-up market page.
And the loan limit will not bind
66 of Pennsylvania's 67 counties sit at the $832,750 national baseline, including Philadelphia, Allegheny, Bucks, Chester, Delaware, Montgomery, Lancaster, York, Dauphin and Lehigh. Philadelphia's typical value leaves roughly $443,226 of headroom.
Pike County alone is higher, at $1,209,750. See the loan limits page.
If you rent it out, the lease will not help you qualify
Fannie Mae Selling Guide B3-3.8-05, dated 09/02/2026 under Announcement SEL-2026-08, states that lease agreements are not permitted for any departing residence. Market rent comes from a full appraisal with market rents, a Form 1007 rent schedule, or market analysis tools with at least three comparable rentals.
The math is gross rent times 75%, less that property's PITIA, offsetting that payment only. Under 12 months of property management experience, six months of reserves on the vacated home apply. See the Form 1007 page.
Frequently asked questions
What is Pennsylvania's realty transfer tax rate?
The Pennsylvania Department of Revenue states the tax is imposed at a rate of 1 percent on the value of real estate, including contracted-for improvements, transferred by deed, instrument, long-term lease or other writing. It is collected, often along with an additional local realty transfer tax, by county Recorders of Deeds.
How many times does a Pennsylvania move-up pay realty transfer tax?
Twice, because the tax attaches to a transfer of real estate rather than to your move. Taking a deed on the new home is one taxable transfer and giving a deed on the old home is another.
Does keeping my old Pennsylvania home avoid one of those?
Yes. Renting the departing home records only one deed, the purchase, so only one transfer is taxed instead of two. The trade is that you forgo the sale proceeds.
What is my local Pennsylvania transfer tax rate?
That depends on the municipality and school district, and rates are not published on the Department's realty transfer tax page. Ask your closing agent or the county Recorder of Deeds for the exact figure where the property sits.
How does Pennsylvania compare with Oregon on transfer taxes?
They are opposite poles. ORS 306.815(1) prohibits Oregon cities, counties and districts from imposing any tax or fee on the transfer of a fee estate in real property, while Pennsylvania charges 1 percent at state level and permits an additional local charge.
What is the conforming loan limit in Pennsylvania for 2026?
$832,750 on one unit in 66 of the 67 counties, including Philadelphia, Allegheny, Bucks, Chester, Delaware, Montgomery and Lancaster. Pike County alone is higher at $1,209,750.
Were any Pennsylvania housing markets falling in 2026?
No. Every metro we track rose year over year as of August 2026, from East Stroudsburg at 1.7% to Lewisburg at 5.6%. Nothing in the state was falling.
Can I use a lease to qualify with rental income from the home I am leaving?
No. Fannie Mae Selling Guide B3-3.8-05, dated 09/02/2026, states that lease agreements are not permitted for any departing residence. Market rent is documented by a complete appraisal including market rents, a Form 1007 rent schedule, or market analysis tools with at least three comparable rentals.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Pennsylvania realty transfer tax is collected by county Recorders of Deeds and local rates vary by municipality and school district; your closing agent, your CPA or a Pennsylvania attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.