The Philadelphia Realty Transfer Tax is levied on the sale or transfer of Real Estate located in Philadelphia. The tax also applies to the sale or transfer of an interest in a corporation or partnership that owns real estate and is primarily in the real estate
business as defined by the taxing ordinance. (*exceptions apply, ask your Philadelphia Title Insurance experts for a breakdown)
As of January 1st of next year (2017) the current rate of 3% is going up to three and ten one-hundredths percent (3.10%). The revised code 19-1400 was sure to clearly specify that the tax goes back to 3% in 2036. Like it is really going to go down before it goes up again??
Always keep in mind that this does not include the Commonwealth of Pennsylvania’s transfer tax percentage of 1%.
+ 1% (Commonwealth)
= 4% (Total)
Effective January 1, 2017:
+ 1.0% (Commonwealth)
= 4.1% (Total)
Be sure to factor in the additional .1% when pricing out settlement fees for transactions closing in the new year!
If you have any questions be sure to give us a call and ask your professionals at our PA Title Insurance company!
Good luck and happy taxation!