Staring at your closing estimate and wondering what “transfer tax” means for your Murrysville move? You are not alone. Transfer tax is one of the most misunderstood line items in a Pennsylvania home sale, and it can affect your bottom line whether you are buying or selling. In this guide, you will learn what the tax is, how it applies in Murrysville, who pays, when it is due, and the steps to confirm your exact amount before closing. Let’s dive in.
Pennsylvania transfer tax basics
A realty transfer tax is a tax on the transfer of real property from one party to another. In Pennsylvania, there is a statewide tax, and local governments can also impose their own transfer tax. Your Murrysville transaction can include the state tax plus a county and possibly a borough component.
The tax is collected when the deed is recorded with the county. In Westmoreland County, the Recorder of Deeds handles recording and collection in coordination with the county tax office. Title companies and closing attorneys prepare the forms and pay the tax as part of closing.
What applies in Murrysville
For a Murrysville home sale, expect a combined rate made up of:
- The Pennsylvania state realty transfer tax.
- A possible Westmoreland County transfer tax.
- A possible Borough of Murrysville transfer tax.
Combined rates vary across Pennsylvania, so the exact percentage for your address should be verified before you rely on any number. Because rates and ordinances can change, always confirm the current components specific to your property.
How to verify your rate
Use these steps to confirm the combined rate for your Murrysville sale or purchase:
- Confirm the current state rules and definitions with the Pennsylvania Department of Revenue.
- Contact the Westmoreland County Recorder of Deeds in the county seat of Greensburg to verify any county transfer tax and recording procedures.
- Check the Borough of Murrysville’s website or call the borough office to confirm any municipal transfer tax ordinance and rate.
- Ask your agent and your title company or closing attorney for the combined transfer tax rate and the expected line item on your Closing Disclosure or settlement statement.
What counts as “consideration”
Transfer tax is typically calculated on the total consideration for the property. This usually starts with the sale price and can include other items of value exchanged in the deal. Depending on state guidance and local practice, consideration can include an assumed mortgage, certain liens conveyed, or credits and concessions.
Because these items can change the taxable base, confirm with your title company whether any assumed debt or seller credits will be included in the calculation for your specific transaction.
Who pays the tax
Who pays the transfer tax is negotiable and can be assigned by contract. In many markets, custom influences how costs are split, but there is no single rule that fits every Murrysville deal. The safest approach is to address it clearly in your offer and confirm the allocation on the closing documents.
Ask your agent and your title company what is typical in current Westmoreland County transactions, then decide what makes sense for your sale or purchase.
When the tax is paid
Transfer tax is due when the deed is presented for recording, which happens right after closing. Your title company or closing attorney will collect the tax at settlement and remit it with the recording package. If the tax is not paid or a valid exemption is not filed, the Recorder of Deeds may refuse to record the deed.
You will see the transfer tax and recording fees listed as separate items on your Closing Disclosure or HUD-1. Transfer tax is a tax on the conveyance, while recording fees are administrative charges for document recording.
Common exemptions to know
Some transfers are exempt from Pennsylvania realty transfer tax under state law. Common categories include:
- Transfers between spouses.
- Transfers by will or inheritance.
- Transfers to or from government entities.
- Certain transfers to or from trusts and certain transfers between parents and children, subject to specific conditions.
- Court-ordered transfers related to divorce, bankruptcy reorganizations, or certain foreclosure-related events.
If your deal may qualify, the title company will prepare the required exemption affidavit or certification to record with the deed. Complex situations involving entities or changes in ownership control can be tricky. Consult your title attorney or a tax professional if your transaction involves corporations, partnerships, LLCs, estate planning, or unusual consideration.
Simple calculation template
Here is a straightforward way to estimate your transfer tax once you confirm the rates that apply to your property:
- Total transfer tax = Sale price × (State rate + County rate + Municipal rate + Any special local rate)
Example framework only:
- Sale price: $300,000
- Combined rate: Rstate + Rcounty + Rmunicipal = Rtotal
- Estimated transfer tax: $300,000 × Rtotal
Repeat the same math for your own price point once your title company provides the confirmed combined rate. Label your calculation “estimate” until you see the final figure on your Closing Disclosure.
What to do at closing
Expect to review the transfer tax line item during your final Closing Disclosure review. Your title company will also prepare the realty transfer tax return or certification required for recording. If you are claiming an exemption, verify that the supporting affidavit is complete and signed.
Before signing, confirm the difference between transfer tax and recording fees, that the amounts match your contract, and that the correct party is paying each line item. If anything looks off, ask your agent or settlement agent to walk you through it.
Quick checklist for Murrysville moves
- Confirm the current state transfer tax rules and definitions.
- Verify any Westmoreland County transfer tax and the county’s recording requirements.
- Ask the Borough of Murrysville if a municipal transfer tax applies.
- Get the combined rate from your title company and see how it appears on your Closing Disclosure.
- Clarify in your contract who pays what portion of the transfer tax.
- Ask whether assumed mortgages, liens, or seller credits affect your taxable consideration.
- If you might qualify for an exemption, gather the required documents early.
- Remember that rates and rules can change. Reconfirm numbers right before closing.
Local help when you need it
You do not have to figure this out alone. A local, hands-on approach makes a difference when you are balancing costs, timing, and negotiations. If you want help confirming your combined transfer tax, aligning it with your offer or listing strategy, and coordinating with your title company, connect with Katrina Siffrinn for guidance tailored to Murrysville and the surrounding suburbs.
FAQs
What is Pennsylvania’s realty transfer tax for Murrysville home sales?
- It is a tax on the transfer of property, made up of the state tax plus any county and municipal components that apply in Murrysville; verify your combined rate before closing.
Who typically pays the transfer tax in a Murrysville transaction?
- Payment is negotiable and set by contract; ask your agent and title company about current local custom in Westmoreland County, then confirm on your Closing Disclosure.
Are family transfers in Murrysville exempt from Pennsylvania transfer tax?
- Some family-related transfers, such as between spouses or certain parent-child or trust transfers, may be exempt under state law; your title company can prepare required exemption affidavits.
When is the transfer tax due for a Murrysville closing?
- It is collected at settlement and paid when the deed is submitted for recording with the Westmoreland County Recorder of Deeds.
Will Westmoreland County record my deed if transfer tax is unpaid?
- Generally, no; the Recorder may refuse to record if required taxes or a valid exemption are not submitted with the deed.
Where will I see the transfer tax on my settlement paperwork?
- Transfer tax appears as a separate line on your Closing Disclosure or HUD-1, distinct from recording fees and other closing costs.
Do I need to prepay any estimated transfer tax before closing in Murrysville?
- Typically, no; your title company collects the tax at closing and remits it with the recording package.
