Pennsylvania's realty transfer tax law treats corporations and associations as entities separate from their members, as the Commonwealth Court noted in M6 Realty LLC v. Commonwealth, so a deed from you to your own LLC is generally taxed at the state's 1% rate plus any local rate unless a specific exclusion applies.
That surprises investors from states where moving a rental into your own LLC costs nothing. It matters most when a DSCR lender wants the loan in an LLC's name and the rental is titled to you personally, because the tax is due when the deed is recorded. For the Pennsylvania rules that apply statewide, see DSCR loans in Pennsylvania.
Is a deed into my own LLC subject to Pennsylvania realty transfer tax?
Generally yes: the Tax Reform Code treats corporations and associations as separate from their members, and the Department of Revenue says the tax applies to transfers of real estate by deed, instrument or long-term lease.
- The Department of Revenue says the state tax is 1 percent of the value of real estate.
- Revenue says the state tax is collected by county Recorders of Deeds, often along with a local realty transfer tax.
- A rental with a taxable value of $300,000 deeded into an LLC where the combined rate is 2% would owe $3,000 of state tax and $3,000 of local tax.
Exception: When a deed has little or no stated price, ask the title company how the Recorder of Deeds will value it for the tax before you record.
According to the Pennsylvania Department of Revenue, Realty Transfer Tax and M6 Realty LLC v. Commonwealth, No. 797 F.R. 2017 (Pa. Cmwlth., Aug. 4, 2021), as of October 2026.
Are there exclusions that might apply?
The Department of Revenue lists certain transfers among family members and transfers to shareholders or partners among exempt categories, but those categories are defined in the Tax Reform Code, and a deed from an owner into the owner's own LLC is not on Revenue's list.
- In 430 Stump Road, LLP v. Commonwealth (2025), the en banc Commonwealth Court applied the statute's living trust exclusion to a 98% interest in a real estate company.
Exception: Each exclusion has its own conditions, so have a Pennsylvania attorney or the title company confirm whether one fits before you skip the tax.
According to the Pennsylvania Department of Revenue, Realty Transfer Tax, and 430 Stump Road, LLP v. Commonwealth, No. 502 F.R. 2022 (Pa. Cmwlth., May 15, 2025), as of October 2026.
What is an acquired real estate company?
Under Section 1102-C.5(a) of the Tax Reform Code, a real estate company becomes an acquired company when a change in ownership transfers 90 percent or more of its total ownership interest, and the Commonwealth Court in 430 Stump Road described that rule as applying to transfers within a three-year period.
- The Commonwealth Court in 430 Stump Road quoted Section 1102-C.5(a)'s test: a change in ownership that transfers 90 percent or more of the total ownership interest in the company.
- An LLC holding $1,000,000 of rentals whose owner sells 60% and then 35% within 30 months has transferred 95%, which would mean $10,000 of state tax at 1%.
Exception: Whether an LLC counts as a real estate company depends on its assets and ownership, so confirm how the rule applies before selling membership interests.
According to 430 Stump Road, LLP v. Commonwealth, No. 502 F.R. 2022 (Pa. Cmwlth., May 15, 2025), as of October 2026.
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This page is general education about business-purpose real estate financing and state law as published by official sources on the date shown. It is not legal, tax or lending advice, not an offer to lend and not a rate quote. Laws and lender guidelines change; confirm current rules with the lender, the title company and your own attorney or tax adviser.