Selling a home in Montgomery County comes with various costs, including transfer taxes. These are fees collected by state, county, or city governments when property changes hands, typically calculated as a percentage of the sale price. Our quick guide explains how transfer taxes work in Montgomery County, who pays them, and what sellers can expect to pay. Whether you’re planning your sale or want to understand potential costs, this overview will help you prepare. The Federal Trade Commission defines transfer taxes as a tax imposed by state or local governments when ownership of property is transferred from one party to another. This tax applies when the title, the legal document establishing ownership, changes hands during a sale. Transfer taxes vary based on your property’s location, as they are regulated at the state, county, or city level. Like others, these taxes are designed to generate revenue to support public services. Sellers and buyers should familiarize themselves with their area’s specific rates and rules to understand the costs associated with their transactions. The ultimate responsibility of who pays for transfer taxes will depend on the state, city, or county where the transaction occurs. Transfer taxes in Montgomery County follow the rules laid out by the state of Pennsylvania; both the buyer and the seller are responsible for any realty transfer taxes.What are transfer taxes?
Who pays for transfer taxes?
