Pennsylvania Closing Costs for Buyers: How Much You'll Pay

Transfer tax in Pennsylvania

Pennsylvania does not levy a separate mortgage/recordation tax; the realty transfer tax applies to the deed only (mortgages are subject to a flat recording fee, not an ad valorem tax).

Who pays: Both the grantor and grantee are jointly and severally liable for the full 1% state tax under 61 Pa. Code Section 91.111, the statute does not assign it to buyer or seller. Industry practice (per Pennsylvania real estate attorneys, e.g. MacDonald Illig and Ament Law Group) is to split the combined state-plus-local transfer tax 50/50 between buyer and seller, subject to negotiation in the agreement of sale. Source

Worked example: On a $308,500 home outside Philadelphia and Pittsburgh, with a typical combined 2% local+state rate, total transfer tax is about $6,170, customarily split 50/50 so the buyer's share is about $3,085. In Philadelphia the same home would owe about $14,123 in total transfer tax (4.578%); in the City of Pittsburgh, about $15,425 (5%).

How much is title insurance in Pennsylvania?

On a $308,500 home in Pennsylvania, an owner's title policy costs about $2,216 and the lender's policy about $0 when both are issued together (the simultaneous-issue discount). The buyer pays the lender's policy; who pays the owner's policy is a matter of local custom and contract. Pennsylvania uses a filed uniform rate: insurers file one rate schedule with the state, so premiums are the same from company to company and shopping only affects settlement fees. Premiums computed from First American Title Fee Calculator (filed rates), Philadelphia County, Pennsylvania, read September 11, 2026.

Who pays the owner's policy: Pennsylvania has no statute assigning the owner's title insurance premium; local custom (reported by PA real estate practitioners) is that the buyer typically pays for the owner's policy in most of the state, though this varies by region and is negotiable in the agreement of sale.

Owner's policy on the full $308,500 price and the lender's policy on an 80% loan ($246,800), quoted together so the simultaneous-issue rate applies; First American filed rates for Philadelphia County. Pennsylvania title insurance rates are filed with the Pennsylvania Insurance Department;

Pennsylvania-specific buyer costs on a $308,500 home

These are the line items set by Pennsylvania law or filed rates. Lender fees, appraisal, escrow and prepaid taxes and insurance come on top and depend on your loan.

Do you need a closing attorney in Pennsylvania?

Not required. Pennsylvania is not identified as an attorney-closing state, an attorney-title-opinion state, or even an 'attorney by custom' state in industry attorney-state surveys (unlike neighboring Delaware, New Jersey, New York, and Ohio, which appear in one of those categories). Residential closings in Pennsylvania are routinely conducted by title insurance companies and title agents rather than attorneys, though a buyer or seller may choose to have an attorney represent them. This was not cross-checked against a Pennsylvania Bar Association unauthorized-practice-of-law opinion within the research budget. Source

Recording fees

Recording the deed costs $279 and the mortgage $249 at the Philadelphia Department of Records. Fee schedule

How much are closing costs in Pennsylvania?

For a buyer, closing costs usually run 2% to 5% of the purchase price. On Pennsylvania's median-priced home (about $308,500), that is roughly $6,170 to $15,425, and it is separate from your down payment. The exact figure depends on your lender, your loan, and local taxes.

What closing costs include

Closing costs are a bundle of one-time fees due at settlement: lender or origination fees, an appraisal, title insurance, escrow and settlement fees, recording fees and any Pennsylvania transfer tax, plus prepaid property taxes and homeowners insurance.

Why Pennsylvania closing costs vary

The single biggest reason closing costs differ from state to state is transfer taxes, which states and sometimes counties and cities charge on the sale. Title insurance customs and whether an attorney is required at settlement also matter. Pennsylvania is among the highest-cost states, mainly because state and local transfer taxes are often combined.

How a rebate offsets Pennsylvania closing costs

Buyer commission rebates are legal in Pennsylvania. Because a rebate can be paid as a credit at closing, it can erase a meaningful share of these costs. On a $308,500 home, a 2% rebate is about $6,170, often enough to cover much of the closing bill.

See Pennsylvania buyer rebates and how to get one →

Sources

• Pennsylvania transfer tax statute
• Who pays the transfer tax
• Philadelphia transfer tax
• City of Pittsburgh (Allegheny County) transfer tax
• First American Title Fee Calculator (filed rates), Philadelphia County, Pennsylvania, read September 11, 2026
• Pennsylvania closing attorney rule
• Philadelphia Department of Records recording fees
• Pennsylvania Insurance Department, Title Companies Filing Information
• Consumer Financial Protection Bureau: buyer closing costs are typically 2% to 5% of the purchase price

Pennsylvania figures last verified against official sources on September 11, 2026.