Staring at closing numbers and wondering what Pennsylvania transfer tax will cost you in Harrisburg? You are not alone. Buyers and sellers often find this line item confusing because rates come from different levels of government and who pays is negotiable. In this guide, you will learn what the tax covers, how to figure out the total for a Harrisburg property, who usually pays, and how to plan your budget so there are no surprises on closing day. Let’s dive in.
What transfer tax is
Pennsylvania’s realty transfer tax is a tax on the transfer of title to real property. It is based on the total consideration for the sale, which usually means the purchase price and any non-cash consideration that applies. You will see it collected at settlement and remitted so the deed can be recorded.
The deed is normally not recorded until the required transfer tax is paid or properly documented. Your title or settlement company handles the calculation and payment as part of closing, and the charge appears as a debit on the Closing Disclosure or HUD-1.
Harrisburg rate structure
Your total transfer tax for a Harrisburg city property is the sum of three parts:
- State transfer tax
- Dauphin County transfer tax (if any)
- City of Harrisburg transfer tax or municipal add-on
If the property sits outside the City of Harrisburg, replace the city component with the township or borough rate where the property is located. Different municipalities in Dauphin County, such as Susquehanna Township or Lower Paxton Township, may have different add-ons. Because local ordinances can change, confirm the current rate before you set closing figures.
To verify what applies to your address, you can contact the City of Harrisburg tax office for municipal rules and the Dauphin County Recorder of Deeds or Treasurer for county recording requirements. Your title company or settlement attorney will combine the correct levels and show the total on your closing estimate.
Who pays in Harrisburg
There is no single statewide rule for who pays transfer tax. It is a negotiable term in your contract, and local custom can vary by neighborhood, price point, and market conditions. In many parts of central Pennsylvania, buyers and sellers often start with a 50/50 split as a neutral default, but other approaches are also common.
Typical allocations you might see include:
- A 50/50 split between buyer and seller
- Seller pays the entire amount
- Buyer pays the entire amount
- Seller pays the state portion and buyer pays the municipal or county add-on
What matters most is clarity. Decide the allocation during offer drafting, and write it into the purchase agreement. That way, your Closing Disclosure will match expectations.
Sample contract language ideas
- Transfer tax to be split 50/50 between Buyer and Seller.
- Seller to pay all realty transfer tax due at settlement.
- Buyer to pay municipal and county transfer tax; Seller to pay state transfer tax.
Your agent and title company can help you choose the wording that fits your strategy and the current market.
How to calculate your tax
Transfer tax is calculated on the sale price, not on net proceeds. The formula is straightforward:
- Transfer tax amount = Sale price × Total transfer tax rate
Your title company will compute the exact numbers for your specific property and show them on your Closing Disclosure.
Quick example at 2.0% total
The following is an illustration only. Always use current local rates for your actual estimate.
- Sale price: $300,000
- Hypothetical total transfer tax: 2.0% of sale price
- Total due: $300,000 × 2.0% = $6,000
If the contract says 50/50 split, the buyer would pay $3,000 and the seller would pay $3,000. If the contract states that the seller pays all transfer tax, the seller would pay the full $6,000 as a seller debit.
Where it shows on your closing
On your Closing Disclosure or HUD-1, you may see line items like:
- Realty Transfer Tax — Buyer (debit)
- Realty Transfer Tax — Seller (debit)
- Recording/Deed Tax paid to county or municipality (remittance entry)
The settlement agent collects and remits the tax before recording the deed. If the required tax is not paid, recording and transfer of title can be delayed.
Exemptions and special cases
Certain transfers may be exempt from transfer tax or handled differently. Common categories include:
- Transfers between spouses or those tied to a divorce
- Transfers to government entities or certain qualified nonprofit or charitable organizations
- Transfers by fiduciaries or through probate under specific rules
- Gift transfers or transactions with no consideration, which may require special documentation
- Transfers among related or commonly controlled entities, subject to close review
Exemptions are not automatic. Most require specific forms and supporting documents, which your title company or attorney will prepare and submit. Do not assume an exemption applies until your settlement team confirms it for your exact situation.
Costs beyond transfer tax
In addition to transfer tax, plan for other routine charges at closing. These can include:
- Deed recording fees
- Local filing or administrative fees
- Any uncommon municipal fees for unusual property types
Your title company will list these on your closing estimate so you can see the full picture early.
What to verify early
To avoid last-minute surprises, check these items as soon as you are under contract:
- Confirm the current total transfer tax rate for the property’s location, including state, Dauphin County, and the municipality.
- Decide who pays the transfer tax and include the allocation in the purchase agreement.
- Request an early estimated Closing Disclosure or settlement worksheet showing transfer-tax line items.
- Ask your title company whether any exemptions could apply and what documents are needed.
If you are the seller, also ask your agent to align the net sheet with the transfer tax allocation so your proceeds match your expectations. If you are the buyer, confirm how the transfer tax fits into your cash to close.
What to expect at closing
On closing day, the transfer tax will appear as a debit to the party or parties responsible, based on the contract. The settlement agent collects those funds, prepares the deed, and remits the tax to the proper offices. Recording follows once the county’s requirements are met.
If something about the amount looks off on your final Closing Disclosure, speak up before signing. A quick check with your agent and title company can resolve discrepancies and keep the recording on track.
Who to contact for current rates
Because local ordinances change, rely on up-to-date sources close to your transaction:
- City of Harrisburg Bureau or Tax Office for the city’s transfer tax rate and procedures
- Dauphin County Recorder of Deeds or Treasurer for county recording requirements
- Pennsylvania Department of Revenue for state-level transfer tax rules
- Your title company or settlement attorney for exact calculations and exemption filings
Local real estate professionals can also share current market practices for who pays the tax in different neighborhoods and price brackets.
Avoid surprises: practical tips
A few simple steps can save you time and money:
- Get the total rate in writing. Ask your title company to confirm the state, county, and municipal components.
- Put the allocation in the offer. Clear contract language prevents last-minute negotiations.
- Request a pre-closing estimate. An early Closing Disclosure helps you budget cash to close.
- Ask about exemptions. If you think one might apply, provide documents early so the title team can review them.
- Plan for recording and fees. Transfer tax is separate from deed recording and other filing charges.
Talk through your costs
Transfer tax is predictable once you know the local pieces and who is paying. With the right plan, it becomes a simple line item instead of a last-minute shock. If you want help confirming today’s Harrisburg numbers and structuring a clean offer or net sheet, reach out to the local experts who handle these details every day. The Got Bob Hoobler Team at REMAX 1st Advantage can walk you through your closing costs, coordinate with your title company, and keep your timeline on track.
FAQs
What is Pennsylvania realty transfer tax?
- It is a tax on transferring title to real property, calculated on the total consideration and paid at settlement so the deed can be recorded.
How is Harrisburg’s transfer tax calculated?
- Your total equals the state tax plus any Dauphin County tax and the City of Harrisburg’s municipal tax, all applied to the sale price.
Who usually pays transfer tax in Harrisburg?
- It is negotiable; many central Pennsylvania deals start with a 50/50 split, though buyers or sellers sometimes agree to pay more based on market conditions.
Where will transfer tax appear on my Closing Disclosure?
- You will see debits labeled for the buyer and/or seller and a remittance entry showing payment to the county or municipality.
Are any transfers exempt from the tax?
- Certain transfers, like those between spouses, to government bodies, or qualifying nonprofits, may be exempt with proper documentation; your title company will confirm.
When should I confirm the transfer tax rate and split?
- Confirm both at offer time, write the allocation into the contract, and request an early closing estimate from your title company to verify amounts.
