Buying a home in Harrisburg and hearing about “transfer tax” at closing? You are not alone. This cost sneaks up on many first-time and repeat buyers. The good news is you can plan for it with a few simple checks and some easy math.
In this guide, you will learn what Pennsylvania’s transfer tax is, how local rates in Dauphin County and Harrisburg can affect it, who typically pays, and how to budget with real examples. You will also get a quick checklist to confirm your exact amount before you write an offer. Let’s dive in.
Transfer tax basics in Pennsylvania
A real estate transfer tax is charged when property ownership changes. In Pennsylvania, the tax is usually calculated as a percentage of the sale price listed in the deed.
Pennsylvania sets a state realty transfer tax. Counties and municipalities can add their own local transfer taxes. Your total tax equals the combined state, county, and municipal rates for the property’s location.
The settlement agent collects the tax at closing and files the required paperwork when recording the deed. Some transfers, like those between spouses or certain government-related transfers, may qualify for exemptions. If you think an exemption may apply, ask your settlement company to confirm what documentation is needed.
Harrisburg and Dauphin County: verify your rate
Local rates vary across Pennsylvania. Inside Dauphin County, your total percentage depends on whether only the state rate applies, or if Dauphin County and the City of Harrisburg also impose a local tax. Some municipalities add their own tax on top of the state base.
Before you write an offer, verify the exact rate for your property’s address:
- Ask your agent to confirm the county and municipal transfer tax rates for the property’s location.
- Ask the settlement or title company handling your closing. They calculate transfer taxes and show them on your Closing Disclosure.
- Check Dauphin County’s Recorder of Deeds or county website for recording fees and any county transfer tax details.
- If the home is inside Harrisburg city limits, check the city’s finance or tax office for any municipal transfer tax.
Verification matters because assuming the state portion alone can understate your cash to close.
Who pays in our market
Pennsylvania does not mandate who pays the transfer tax. The buyer and seller negotiate this in the purchase agreement. Many deals in Pennsylvania use a 50/50 split as a starting point. In some cases a seller pays all, and in others a buyer pays more to strengthen an offer. Local custom can vary by neighborhood and market conditions. Your contract controls, so make sure it clearly states the split.
How to budget your cash to close
The simple formula
- Total transfer tax = sale price × total transfer tax rate (state + county + municipal)
- Your share = total transfer tax × your negotiated split (for example, 50 percent)
On your Closing Disclosure, transfer taxes usually appear under Government Recording and Transfer Charges. The settlement agent collects this at closing as part of your cash to close.
Examples for common prices
These examples are for planning only. They show how a combined local rate can change your budget. Confirm your exact rate for the specific address.
Sale price: 200,000 dollars
- Scenario A, 1.0 percent total: 2,000 dollars total tax → buyer 50 percent = 1,000 dollars; seller = 1,000 dollars
- Scenario B, 1.5 percent total: 3,000 dollars total tax → buyer 50 percent = 1,500 dollars; seller = 1,500 dollars
- Seller pays all at 1.5 percent: buyer pays 0 dollars for transfer tax
Sale price: 350,000 dollars
- Scenario A, 1.0 percent total: 3,500 dollars total → buyer 50 percent = 1,750 dollars
- Scenario B, 1.5 percent total: 5,250 dollars total → buyer 50 percent = 2,625 dollars
Sale price: 500,000 dollars
- Scenario A, 1.0 percent total: 5,000 dollars total → buyer 50 percent = 2,500 dollars
- Scenario B, 1.5 percent total: 7,500 dollars total → buyer 50 percent = 3,750 dollars
What this means for you: even at modest rates, transfer tax can be several thousand dollars. Compare neighborhoods and properties with the correct local rate so your cash to close is accurate.
Where it shows on your Closing Disclosure
Look for transfer taxes under Government Recording and Transfer Charges. You will also see the allocation between buyer and seller based on your contract. Your lender and settlement agent should be able to walk you through each line so there are no surprises.
Do not confuse it with other fees
Buyers often mix up transfer tax with other closing costs. Here is what is separate:
- Recording fees for the deed and mortgage
- Title and settlement charges, including title insurance, title search, and closing fees
- Lender fees, such as origination, appraisal, and underwriting
- Prepaids and escrows for property taxes, homeowners insurance, and initial mortgage interest
Transfer tax is a percentage-based government tax. The other items are separate and can be fixed, formula-based, or prepaid.
Harrisburg buyer checklist
Use this step-by-step list from search to closing:
Early in your search
- Ask your agent for the estimated combined transfer tax rate for your target areas, including any city tax inside Harrisburg.
- Use your lender’s Loan Estimate to gauge total closing costs and cash to close.
At contract
- State clearly in the purchase agreement who pays the transfer tax and the split.
- Ask the settlement company for a preliminary breakdown of transfer tax and recording fees for the property address.
Before closing
- Review your Closing Disclosure line by line. Verify the transfer tax amount and who is paying.
- Confirm the settlement agent will file the required transfer tax returns and record the deed.
After closing
- Keep copies of the recorded deed and confirmation that transfer tax filings were submitted. Your settlement agent usually provides these.
Key takeaways
- Your total transfer tax equals the combined state, county, and municipal rates for the property’s location.
- Who pays is negotiable and should be spelled out in your contract. A 50/50 split is common, but not guaranteed.
- Confirm the exact local rate and your split early so your cash to close is correct.
Ready for local guidance?
If you want clear numbers for your specific Harrisburg or Dauphin County address, we are here to help. Reach out to Ajay Patel and the Hershey Real Estate Group team for a quick, local breakdown and a smooth path to closing.
FAQs
Is transfer tax the same statewide in Pennsylvania?
- No. The state sets a base tax and local jurisdictions can add their own. Always confirm the county and municipal portions for your property’s address.
Will my lender finance the transfer tax into my loan?
- Usually no. Transfer tax is paid at closing in good funds. Plan for it as part of your cash to close unless your contract and lender approve another arrangement.
Can I get a refund or exemption on transfer tax in PA?
- Only certain transfers qualify, such as between spouses or some government-related transfers. Ask your settlement company to confirm eligibility and required documents.
Is transfer tax negotiable for Harrisburg deals?
- The rate is set by law, but who pays is negotiable. Many Pennsylvania deals split 50/50, though terms depend on your contract.
How do I confirm the exact transfer tax for a Harrisburg address?
- Ask your agent and settlement company, and check Dauphin County and City of Harrisburg tax offices for local rates. Your Closing Disclosure will show the final amount.
