Understanding Allegheny County’s Transfer Tax: A Quick Guide
Learn about the Allegheny County transfer tax. Understand how it affects your property sale and learn about possible exemptions.
When selling a home in Allegheny County, real estate transfer taxes are an important cost to be aware of. These taxes, charged by state and local governments, apply whenever property changes ownership and are typically calculated as a percentage of the sale price.
This guide explains how transfer taxes work in Allegheny County, who pays them, and what sellers can expect to pay. It also covers additional fees, exemptions, and tips to help you plan for these costs during your home sale.
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What are transfer taxes?
Real estate transfer taxes are a fees imposed by state or local governments when ownership of a property is transferred from one party to another. According to the Federal Trade Commission, these taxes apply at the time of sale and are based on the transfer of the title, which represents the legal ownership of the property.
The amount owed in transfer taxes varies depending on where the property is located, as each state, county, or city sets its own tax rates and rules. These taxes, like others, are designed to generate revenue to fund public services and government operations.
Who pays for transfer taxes?
In Pennsylvania, real estate transfer taxes are owed individually by both the buyer and seller (or grantor and grantee).
