When real estate is sold in Philadelphia Pennsylvania, real estate transfer taxes (sometimes known as deed recording taxes) are levied. Transfer taxes are different from property taxes in that they are only charged once at closing while property taxes recur. It is useful for home buyers and sellers to be familiar with what a transfer tax is and how much it may contribute to closing figures. This article offers information on Philadelphia Pennsylvania real estate transfer taxes and who pays them.
Philadelphia Pennsylvania Real Estate Transfer Taxes and Who Pays Them
The transfer of property means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other conveyance of ownership in title to real property. In Philadelphia Pennsylvania, both buyers and sellers are responsible for real estate transfer taxes. The amount of Philadelphia Pennsylvania real estate transfer taxes is calculated by the sale price of the home and the tax rate of 2%. It is detailed as part of closing costs for both buyers and sellers and is ordinarily required before the deed put on record. The calculation of the tax is usually the closing attorney’s responsibility and is detailed in the settlement statement.
Information On Philadelphia Pennsylvania Real Estate Transfer Taxes
The amount of Philadelphia Pennsylvania tax due is based on the current rate on the day that a closing completes and the deed is recorded. Occasionally property taxes could increase. Proposed increases are generally a source of controversy. Ask a Philadelphia Pennsylvania real estate agent for current details on tax rates. You should also consult your accountant on whether real estate transfer taxes have any tax benefits. Information on Philadelphia Pennsylvania real estate transfer taxes and who pays them, as provided above, is meant as an introduction. Contact Diana Escobar-Wachter at Access Abstract Corporation by calling 610-461-2910 or emailing wachterd@accessabstract.com to get additional information.
