What percentage of the conveyance value must be reported for the Realty Transfer Tax in PA?

The Realty Transfer Tax in Pennsylvania is calculated at a rate of 1% of the conveyance value of a property. This tax is applied to the total price of the property being transferred and is a crucial component of real estate transactions in the state. When a property is sold or conveyed, the seller is responsible for this tax, which is typically collected at the time of closing.

Understanding the implications of the 1% rate is significant for both buyers and sellers, as it affects the overall cost of purchasing real estate. Correctly calculating and reporting this percentage ensures compliance with state tax laws and helps avoid penalties associated with misreporting.

In Pennsylvania, real estate professionals and title analysts are expected to have a clear grasp of these tax regulations to facilitate smooth transactions and proper document processing. This knowledge aids in preparing accurate settlement statements and ensuring that all taxes owed are accounted for in the closing process.