Philadelphia's realty transfer tax is 3.578% city plus 1% state, 4.578% in total, effective July 1, 2025, according to the City of Philadelphia.
Philadelphia's transfer tax is a large line item at closing, and its rental rules add a license, lead certification and paperwork at every lease. For the Pennsylvania rules that apply statewide, see DSCR loans in Pennsylvania.
How much is Philadelphia's realty transfer tax?
Philadelphia's realty transfer tax is 3.578% for the city plus 1% for the Commonwealth, 4.578% in total, effective July 1, 2025, and it is due when the deed is presented for recording.
| Purchase price | Combined transfer tax at 4.578% |
|---|---|
| $200,000 | $9,156 |
| $300,000 | $13,734 |
Exception: The city says the tax is usually split evenly between buyer and seller, but this is not a legal requirement, and the city can collect 100% from either party. Agree on the split in the purchase contract.
According to the City of Philadelphia, realty transfer tax rate announcement (July 28, 2025) and Realty Transfer Tax, as of October 2026.
Do Philadelphia rentals need a license?
Yes. Philadelphia requires a Rental License from Licenses and Inspections to rent out dwelling units, renewed annually at $69 per unit per year, capped at $27,830; see Philadelphia Code 9-3902.
- One license can cover all units in a single building; each building needs its own.
- A non-owner-occupied rental also needs a Commercial Activity License and a business tax account.
- The owner must be current on city taxes and fines.
Exception: Owner-occupied units pay no license fee. Check L&I's full requirement list before you lease.
According to the City of Philadelphia, Get a Rental License, as of October 2026.
What does Philadelphia require before you sign a lease?
Rentals built before March 1978 must be certified lead-safe or lead-free at the time the lease is signed and to get or renew a rental license, and the owner must give a new Certificate of Rental Suitability for each new tenant and each lease renewal; see Philadelphia Code 9-3903.
- A lead-safe certificate is valid for four years; a lead-free certificate does not expire.
- The Certificate of Rental Suitability is free.
Exception: Lead testing is done by a Pennsylvania-certified risk assessor or lead dust sampling technician. Check the city's full list of move-in requirements before you lease.
According to the City of Philadelphia lead certification FAQ and Get a Certificate of Rental Suitability, 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.