If you’re planning to sell your home in Philadelphia, you need to have a full understanding of all of the financial implications, including real estate transfer taxes. Transfer taxes are fees imposed by local, state, or county governments when transferring property ownership between people or entities. These taxes can significantly impact the total cost of selling your property in Philadelphia. Our guide will explore how transfer taxes work in Philadelphia, outlining the various types and what sellers should anticipate paying. Whether you’re a first-time seller or a seasoned homeowner, this guide will provide you with essential insights to manage the complexities of transfer taxes efficiently, ensuring you are well-prepared for your home sale. Real estate transfer taxes are levied by state or local governments when the ownership of a property is transferred from one individual to another. According to the Federal Trade Commission, this tax is applicable whenever the title of a property—essentially the official rights to ownership—changes hands. The specific amount owed in transfer taxes can vary greatly depending on the location of the property, as each state, county, and city may have its own regulations and rates for these taxes. These taxes can be invaluable in local and state economies, as they help generate revenue that funds various public services, though the exact impact they will have on your bottom line depend greatly on your location, the amount the property sells for, and other factors. Both the buyer and sellers (or grantor and grantee) are responsible individually for real estate transfer taxes in Philadelphia and Pennsylvania as a whole.What are transfer taxes?
Who pays for transfer taxes?
