Costs of Selling Land in Pennsylvania
Here is what a land seller usually pays in this state, from transfer tax to capital gains. When you sell to us, we pay the closing costs and you pay no fees or commissions.
- Cash offer in 24 hours
- No fees or commissions
- We pay closing costs
- Close in as few as 7 days
Seller Costs in Pennsylvania at a Glance
| Cost | Typical amount | Who usually pays |
|---|---|---|
| State realty transfer tax | 1% of value | Seller and buyer are jointly liable; often split in the contract |
| Local realty transfer tax | Varies by municipality and school district (Philadelphia 3.578%, Pittsburgh 4%) | Same as the state tax |
| Recording fees | Set by the county recorder; charged per document or page | Buyer usually records the deed; seller pays to record lien releases |
| Title search and owner's title insurance | Priced by the title company or attorney; varies with sale price | Set by the contract and local custom |
| Prorated property taxes | Your share of the current year's tax, up to the closing date | Seller for the days owned; unpaid back taxes are paid from the sale |
| Federal capital gains tax | 0%, 15% or 20% of a long-term gain (land held over 1 year); short-term gains taxed as ordinary income; 3.8% NIIT may apply at higher incomes | Seller, on the gain only |
| Pennsylvania income tax on the gain | Flat 3.07% | Seller |
Example: Seller Costs on a $25,000 Land Sale
- Seller half of 1% state realty transfer tax
- $125
- Seller half of local tax, using a 1% local rate for illustration
- $125
- Total seller transfer cost
- $250
State tax: 1% x $25,000 = $250, half is $125. Local tax at an assumed 1% rate: $250, half is $125. This assumes the contract splits the tax evenly; your local rate may differ, and Philadelphia and Pittsburgh are much higher. Recording, title and prorated taxes are not included.
Selling Costs in Pennsylvania: What to Know
Pennsylvania has one of the higher transfer taxes on land. The state charges 1 percent, and local governments add their own realty transfer tax on top. This page lists each cost, who usually pays it, and an example on a $25,000 lot.
Most of these costs come out of your proceeds at closing, so you see them on the settlement statement, not as bills. The one cost that comes later is income tax on any gain, which you report on your return. This page is general information, not legal or tax advice. Rates change, so confirm them with the office named here or a tax professional before you rely on them.
Pennsylvania realty transfer tax: state plus local
The state realty transfer tax is 1 percent of the value of the land transferred by deed (PA Department of Revenue). The county recorder of deeds collects it.
Local governments add a local realty transfer tax, usually shared by the municipality and the school district. The rate depends on where the land is, so ask the county recorder of deeds. Two large examples: in Philadelphia the city part is 3.578 percent, for a total of 4.578 percent since July 1, 2025 (City of Philadelphia). In the City of Pittsburgh the city takes 3 percent and the school district 1 percent, for 5 percent with the state tax (Allegheny County).
The law makes the seller and buyer jointly liable for the whole tax. Who pays which share is set in the contract.
Who pays what in Pennsylvania
Pennsylvania law holds both sides liable for the transfer tax. Many contracts split the state and local tax between seller and buyer, but the contract controls. The buyer usually pays to record the deed and for the owner's title policy.
- Seller: their share of the realty transfer tax under the contract, any commission, payoff of liens and back taxes, and the seller's share of the year's property tax.
- Buyer: their share of the transfer tax, recording the deed, and lender costs if any.
- Either side: title search, settlement fee and survey, as the contract says.
Attorney or title company: who closes a land sale in Pennsylvania
In Pennsylvania, most land sales close through a title company or an escrow or settlement agent. The closing agent orders the title search, prepares the settlement statement, collects the transfer tax and recording fees, pays off liens and back taxes, and sends you your money.
You can hire a real estate lawyer at any time to review the contract or the deed, and a lawyer is worth it when the title has problems, when heirs own the land together, or when an estate is still open. The contract says who pays the closing agent's fee.
Capital gains tax when you sell land in Pennsylvania
Federal tax applies to the gain, not to the sale price. The gain is roughly the sale price minus what you paid for the land, minus selling costs and the cost of lasting improvements. If you held the land for more than one year, the gain is long term. If you held it one year or less, it is short term and is taxed like wages (IRS Topic 409).
Long-term gains get federal rates of 0, 15 or 20 percent, depending on your taxable income. For 2025, a single filer paid 0 percent on long-term gains if taxable income was $48,350 or less. Higher earners may also owe the 3.8 percent net investment income tax when modified adjusted gross income passes $200,000 for single filers or $250,000 for joint filers (IRS Topic 559).
Pennsylvania taxes net gains from the sale of property, including land, at its flat personal income tax rate of 3.07 percent (PA personal income tax rates).
Recording, title and property tax at closing
Recording fees are set by law and charged by the county office that records deeds. The buyer usually pays to record the new deed. If a mortgage or lien is paid off at closing, the release is recorded too, and the seller usually pays for that.
A title search shows who owns the land and what liens or back taxes sit on it. Owner's title insurance protects the buyer against title problems found later. The price comes from the title company or attorney, and the contract says who pays.
Property tax is split by date. You pay for the part of the year you owned the land, and the buyer pays for the rest. Any back taxes are paid from your proceeds before you get the balance.
How selling to a cash buyer changes the costs
A cash sale has no lender, so there are no loan fees, no appraisal and no financing delays. When you sell to EasyLotBuyer, we pay the closing costs, and you pay no fees or commissions. We can close in as few as 7 days, and we send a cash offer within 24 hours.
We also buy land with back taxes, liens, title problems or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale. Tax on your gain is still yours to report, so keep your closing statement for your return. Get a cash offer for your Pennsylvania land.
Sources
Rules and fees change; check with the county before you act on them.
Selling Cost Questions in Pennsylvania
What is the transfer tax in Pennsylvania?
The state charges 1 percent and local governments add their own rate. Philadelphia's total is 4.578 percent and the City of Pittsburgh's is 5 percent. Ask your county recorder of deeds for your local rate.
Does the buyer or seller pay Pennsylvania transfer tax?
Both are liable by law. The contract decides the split, and many contracts split it evenly.
What closing costs does a seller pay in Pennsylvania?
Usually the seller's share of the 1 percent state and local realty transfer taxes under the contract, plus payoff of any liens or back taxes and the seller's share of the year's property tax. Title and closing fees are split as the contract says.
Do I owe capital gains tax when I sell land in Pennsylvania?
Federal tax applies to any gain. Pennsylvania also taxes the gain at its flat 3.07 percent personal income tax rate.
Who pays closing costs when I sell land for cash?
It depends on the contract. When you sell to EasyLotBuyer, we pay the closing costs and you pay no fees or commissions. Back taxes, if any, are paid from the sale at closing.
Are back taxes paid at closing?
Yes. The closing agent pays delinquent property taxes and recorded liens from the sale proceeds, and you receive the balance. You can sell land that has back taxes.