What Does It Cost to Sell a House in Philadelphia?

How much is the Philadelphia transfer tax?

It is 4.578% of the price: 3.578% for the City plus 1% for Pennsylvania. The City's share rose from 3.278% on July 1, 2025. On a sale, the tax is figured on the actual price paid, plus any debt the buyer takes over, and it is paid when the deed is recorded with the City's Department of Records.

To figure your own, multiply the price by 0.04578 for the whole tax, or by 0.02289 for half. A few rules change the bill:

• Family transfers. Most transfers between close family members are exempt, with documents: spouses, parents, children and other direct ancestors and descendants, brothers and sisters (including half and adopted siblings), and the spouses of those relatives.
• Estates. A house left in a will can be exempt, but not always. A sale from an estate to an outside buyer is taxed like any other sale, and the City says the tax is also due when a house is willed to several people and then sold to one of them.

Who pays closing costs in Pennsylvania?

Mostly, whoever the agreement of sale says. Even the transfer tax works that way. The state Department of Revenue says buyer and seller are both liable for the whole tax, the City can collect 100% from either one, and the even split is only a custom. As Bucks County's transfer tax page puts it, state and local governments do not stipulate who pays.

Before you sign, ask the title company or settlement attorney for a written estimate of your costs, often called a seller's net sheet.

Your mortgage and any liens are paid from the sale too, but they are debts you already owe, not costs of selling. Our guide to selling with liens or back taxes explains how those payoffs work.

How much does a real estate agent cost?

Whatever you negotiate. Pennsylvania requires a broker's agreement to say the commission was set by negotiation, and the National Association of Realtors (NAR) says agent pay is "fully negotiable and not set by law."

Some rules changed in 2024. Under NAR's settlement of lawsuits brought by home sellers, these changes took effect August 17, 2024:

• Offers to pay the buyer's agent are no longer allowed on the MLS, the shared listing service agents use. Sellers can still offer that pay outside the MLS.
• Sellers can still offer buyer concessions on the MLS, such as help with the buyer's closing costs.
• Agents who use an MLS must have a written agreement with a buyer before touring a home with them.

For context, a May 2025 Federal Reserve research note, using sales through 2023, found buyer's agents averaged about 2.7%, and that the old norm of 6% for both agents together had weakened but still held to some extent. Ask each agent what the fee covers, and whether you will be asked to pay the buyer's agent.

What other costs come out of a seller's proceeds?

Payoff letters

Your mortgage payoff includes interest up to the payoff date, so each payoff letter is good through a specific day. For most home loans, the servicer must send one within seven business days of a written request, so order payoffs early.

Prorated property taxes

Philadelphia's Real Estate Tax for the year is due March 31. Most agreements of sale split the year's tax by the closing date: if you already paid the whole year, you usually get a credit for the days after closing, and if you have not, your share comes out at closing.

The final water bill

The City says unresolved water liens pass on to the new owner, so water balances are settled at closing. You or the title company email the City's Water Payoff Request Form to [email protected] at least 30 days before settlement. If your meter is estimating or broken, call the Water Revenue Bureau at (215) 685-6300 first, because the City says that can affect your payoff.

The Property Sales Certification

State law requires one to sell real estate in Philadelphia. It shows the zoning, the last established use and any uncorrected housing, building, safety and fire violations. L&I charges $139 and takes five business days. Open violations are disclosed to the buyer, who will price them in; see our code violations guide.

Repairs, credits and carrying costs

After the inspection, many buyers ask for repairs or a credit, and for a house built before 1978 they get 10 days to test for lead paint unless they waive it. Then there is the cost of waiting. If your taxes, insurance, utilities and loan interest come to $900 a month (an example; use your own numbers), four more months on the market costs $3,600.

What does the transfer tax cost in the PA suburbs?

Much less than in the city. Pennsylvania's 1% applies statewide, and local governments can add their own share, which they may split between the town and the school district.

In Montgomery County, PA, the local share depends on the township or borough and its school district, so ask your title company. Some suburbs add costs of their own. Upper Darby, for example, requires a Use and Occupancy permit for every property transfer, and the seller has to apply at least 14 business days before settlement. See our pages on Delaware County, PA, Upper Darby, Bucks County and Montgomery County, PA.

What paperwork do you need to sell a house in Philadelphia?

Gather these early, so a missing paper does not push back your closing.

• Photo ID for everyone on the deed.
• Your deed, or at least the OPA number. The deed and mortgage history are on atlas.phila.gov.
• Loan statements for the mortgage and any home equity loan or line, with account numbers, so payoffs can be ordered.
• Tax and water account details, including any payment agreement.
• The Property Sales Certification, plus any L&I violation notices and open permits.
• The seller's property disclosure statement. Pennsylvania requires most sellers to give the buyer a signed statement of the material defects they know about before the agreement of sale is signed. Our as-is guide explains who is exempt.
• The lead paint disclosure and any lead reports, for a house built before 1978. Keep your signed copy for three years.
• Your Social Security number or other taxpayer ID. The settlement agent may need it to report the sale to the IRS on Form 1099-S.
• Leases and security deposit records, if tenants live there. See selling with tenants.
• Court or estate papers, if they apply: letters from the Register of Wills for an inherited house, a power of attorney, or divorce papers. See our guides to inherited houses, selling during a divorce and selling from out of state.

How do you choose a closing date?

Work backward from the paperwork, then pick a day that fits your move and your budget.

1. Count your carrying costs. Each extra month adds taxes, insurance, utilities and loan interest.
2. Check the tax calendar. Philadelphia's Real Estate Tax is due March 31. Know whether you have paid the year, since the proration at closing depends on it.
3. Check the two-year mark. If you owned and lived in the house as your main home for at least two of the last five years, you may be able to exclude up to $250,000 of gain from income, or up to $500,000 for a married couple filing jointly. If you are close to two years, the date could change your taxes, so ask a tax professional.
4. Plan the move. If you need a few days after closing to move out, put it in writing.
5. Leave room. A buyer's loan or appraisal can push a date back. A cash sale has no loan to wait on.

How can you lower your costs to sell?

1. Negotiate the commission. Talk to more than one agent, ask what the fee covers, and decide up front whether you will offer to pay a buyer's agent.
2. Get a written estimate early. Ask the title company for your seller costs before you sign, and compare.
3. Deal with City debts early. Unpaid Real Estate Tax picks up charges every month. If you live in the house, an OOPA (the City's payment plan for owner-occupants) may waive part of the interest and penalties.
4. Check the family exemption. A sale to a close relative may be exempt from the transfer tax.
5. Skip repairs that do not pay for themselves. Get bids first, and fix only what is driving buyers away.
6. Compare offers that cover the closing costs. Line up a listing estimate and a cash offer, and compare what each leaves you after everything.

What are your options, and what does each one cost?

• List with an agent. Usually the highest price for a house in good shape, minus the costs in the table below.
• Sell it yourself. No listing commission, but you still pay your share of the transfer tax and closing costs, maybe a buyer's agent, and you do the work.
• Sell to a family member. The transfer tax may not apply, but other closing costs do.
• Keep it or rent it out. No selling costs, but you keep paying taxes, insurance and repairs.
• Sell as-is to a cash buyer. A price below what a repaired house would bring. With us, there is no commission and we pay all the closing costs.

Honest math: when the house is in good shape and you have time, listing will usually leave you more, and we will say so. When it needs real work, the gap shrinks once you subtract repairs, commission, your share of the transfer tax and months of carrying costs. Our offer math page and cash sale vs listing comparison show the numbers side by side.

How can Vivid help?

Vivid Properties is a local, family-owned real estate investment company in Philadelphia. We buy rowhomes, twins, singles and small 2 to 4 unit buildings as-is, in Philadelphia, the Pennsylvania suburbs and South Jersey. We pay all the closing costs, there is no commission, and there are no fees from us. What still comes out of the price is only what you already owe against the house, such as the mortgage payoff, liens, or unpaid taxes and bills. You get a fair written offer, usually within 24 hours, and you pick the closing day.

Get my cash offer Text or call (267) 551-5554

Frequently asked questions

This guide is general information, not legal or tax advice. For your situation, talk to a Pennsylvania or New Jersey attorney or tax professional.