Buying a home in Yardley comes with a line item many buyers do not expect: the realty transfer tax at closing. If you are planning your cash to close, this tax can be one of the larger costs after your down payment. The good news is that it is predictable once you know the local rate and your purchase price. In this guide, you will learn how the Pennsylvania transfer tax works in Yardley, who typically pays it, how to estimate it, and where to verify the exact number before you sign. Let’s dive in.
What the transfer tax is
Pennsylvania assesses a realty transfer tax on the conveyance of real estate when the deed is recorded. It is separate from title insurance, recording fees, and lender charges. The tax is based on the consideration shown on the deed, which is usually the sale price. Some transfers can be exempt under state law, but most standard purchases are taxable.
Yardley and Bucks County structure
In Pennsylvania, there is a statewide transfer tax that is commonly cited as 1% of the sale price. Local governments can add their own transfer taxes. In Yardley, you should account for three possible layers:
- Commonwealth of Pennsylvania share
- Bucks County share
- Municipal or school district share for the Borough of Yardley or the applicable district
The combined rate in many Pennsylvania suburbs often falls between about 1% and 2% of the sale price. Local ordinances can change, so you should verify the current combined rate for the specific Yardley address before you finalize your budget.
How to calculate your tax
The math is simple once you know the combined rate.
- Transfer tax = combined rate × sale price
- The taxable amount is typically the sales price shown on the deed and settlement statement.
Use the examples below to see how the tax affects buyer budgeting. These are illustrations only. Confirm the exact Yardley rate for your property.
| Sale price | 1.0% total tax | 1.5% total tax | 2.0% total tax |
|---|---|---|---|
| $300,000 | $3,000 | $4,500 | $6,000 |
| $450,000 | $4,500 | $6,750 | $9,000 |
| $600,000 | $6,000 | $9,000 | $12,000 |
If your negotiated contract says you will pay half, then your portion would be half of the total shown above. Always confirm the split in writing in your purchase agreement.
Who pays in Yardley contracts
In Pennsylvania, the transfer tax split is negotiable and is set in the sales contract. A 50/50 split between buyer and seller is a common starting point in many suburban markets, including Bucks County, but it is not a rule. In some deals, sellers pay more to help with buyer affordability. In other situations, buyers agree to pay the entire posted tax.
Look for a clause labeled “Transfer Taxes,” “Settlement Costs,” or “Closing Costs” in your agreement. If it is not clear who pays what, ask to clarify before you sign. Custom can vary by neighborhood and market conditions, so recent local contracts are a useful guide.
Exemptions and special situations
Some transfers are exempt or treated differently under Pennsylvania law. Examples can include transfers between spouses, transfers incident to divorce, certain gifts, transfers to qualifying charities or governmental bodies, and some deeds into revocable living trusts. If an exemption applies, the closing team will usually require specific affidavits and supporting documents at recording.
There is no automatic statewide transfer tax exemption for first-time buyers. Some housing assistance programs may offer closing cost help that can be applied to the transfer tax. Check Pennsylvania Housing Finance Agency programs and any local Bucks County resources to see what you may qualify for.
Costs often confused with transfer tax
To plan your cash to close, separate the transfer tax from other items you will see on your settlement statement. Common items include:
- Recording fees: County charges to record the deed and mortgage. These are usually modest compared with the transfer tax.
- Title insurance premiums: Owner’s and lender’s policies are separate from tax and recording fees.
- Lender charges, appraisal, and escrow deposits: Financing-related costs that are not part of the transfer tax.
Understanding these categories helps you budget accurately and avoid surprises.
Yardley buyer budgeting checklist
Here is a simple process to estimate your transfer tax and plan your cash to close:
- Verify the combined rate for the specific Yardley address. Confirm the state, county, and any municipal or school district components.
- Multiply the agreed sale price by the combined rate to estimate the total tax due at closing.
- Confirm the contract split. Decide what portion you are paying and get it written into the purchase agreement.
- Ask the title or settlement company for an itemized estimate that shows the transfer tax line item, recording fees, and title charges.
- Review your lender’s preliminary Closing Disclosure and make sure the transfer tax and your share match the contract terms.
- Add this to your cash-to-close worksheet: down payment + lender fees + prepaid items + escrow deposits + title and recording + your transfer tax portion.
Where to verify exact Yardley numbers
Because local levies can change, verify the combined transfer tax rate for your specific property before you finalize your offer or mortgage application. Good sources include:
- Pennsylvania Department of Revenue for statewide realty transfer tax guidance
- Bucks County Recorder of Deeds for county requirements and recording details
- Borough of Yardley municipal office or finance staff for any local ordinance
- The local school district administration, if a school district levy applies
- Title or settlement companies active in Bucks County, since they calculate and collect the tax at closing
- Real estate attorneys and experienced local agents for current contract customs and exemption questions
A quick call to both the title company and the relevant offices will give you the most current and accurate number.
Practical examples for offers
When you prepare an offer in Yardley, consider the transfer tax in your total cost. For example, if you submit a $500,000 offer and the combined rate is confirmed to be between 1% and 2%, the total transfer tax would likely range from $5,000 to $10,000. If the contract is a 50/50 split, your share would be $2,500 to $5,000.
If affordability is tight, you can negotiate the split or request a seller credit to offset part of your share. Make sure the purchase agreement reflects the exact arrangement so the settlement statement matches your plan.
Final thoughts and next steps
The realty transfer tax is a predictable cost once you know the local rate and your contract split. In Yardley and across Bucks County, planning for a combined rate often in the 1% to 2% range will put you in the right ballpark. Verify the precise rate for your address, confirm the split in your agreement, and get an itemized estimate from your title company early in the process.
If you want a clear estimate and local insight before you write your offer, work with an agent who knows Yardley contracts and Bucks County procedures. With more than 40 years of experience helping buyers and sellers across the Philadelphia suburbs, Nancy Aulett can coordinate your title estimate, confirm your transfer tax split, and help you structure a clean offer.
FAQs
What is the Pennsylvania realty transfer tax?
- It is a tax on the conveyance of real estate collected when the deed is recorded, separate from title insurance, recording fees, and lender charges.
How much is transfer tax in Yardley, PA?
- The total rate typically falls between about 1% and 2% of the sale price once state, county, and any municipal or school district shares are combined, but you should verify the current rate for the exact address.
Who pays the transfer tax in a Bucks County home purchase?
- It is negotiable in Pennsylvania; a 50/50 split between buyer and seller is common, but contracts can allocate the full amount to either party.
Can first-time buyers get transfer tax relief in Pennsylvania?
- There is no automatic statewide first-time buyer exemption; some assistance programs may help with closing costs that can be applied to the tax if you qualify.
Can I roll the transfer tax into my mortgage?
- Lenders generally require the transfer tax to be paid at closing; rolling it into the loan is uncommon and depends on lender and underwriting rules.
What documents prove a transfer tax exemption at closing?
- Exemptions usually require specific affidavits, deed language, and supporting documents provided to the title company and recorder at settlement.
