Closing Costs in Pennsylvania
(What to Expect)
A plain-English overview of buyer and seller closing costs in Pennsylvania — what they include, how they’re calculated, and how to plan without surprises.
What are closing costs?
Closing costs are the standard expenses required to complete a real estate transaction. They are separate from real estate commissions and include taxes, title services, lender fees, and prepaid items required at settlement.
In Pennsylvania, these costs are regulated, disclosed in advance, and reviewed before closing so there are no last-minute surprises.
Seller Closing Costs (PA Specific)
Typical Seller Closing Costs in Pennsylvania
Most sellers in Pennsylvania should expect total closing costs to fall in the 4%–4.5% range of the sale price, depending on the transaction and location.
- Seller closing costs commonly include:
- Realty transfer tax (state and local)
- Deed preparation and recording fees
- Settlement and title-related fees
- Real estate commission
Transfer tax is usually the largest non-commission expense for sellers and varies by municipality.
Good to Know
Pennsylvania’s realty transfer tax is calculated as a percentage of the sale price. While it’s commonly split between buyer and seller, the exact split is negotiated as part of the agreement of sale.
Buyer Closing Costs (PA Specific)
Typical Buyer Closing Costs in Pennsylvania
Buyers typically plan for approximately 3%–5% of the purchase price, in addition to any down payment.
Buyer closing costs often include:
- Transfer tax (as negotiated in the contract)
- Title insurance and settlement fees
- Lender fees
- Prepaid taxes and homeowners insurance
- Escrow setup items
Some of these costs are one-time fees, while others are prepayments that would exist regardless of when you purchased the home.
Good to Know
Some buyer closing costs are prepaid items — like property taxes or homeowners insurance — rather than true “fees.” These are expenses you’d pay as a homeowner anyway; they’re simply collected upfront at closing.
Pennsylvania Transfer Tax Explained
What it is and how it is paid
Pennsylvania imposes a realty transfer tax at the state level, with additional local transfer taxes set by municipalities.
- The total transfer tax is percentage-based
- Rates vary by location
- The tax is split is negotiated in the agreement of sale and paid at closing
Because transfer tax is location-specific, understanding it early is key to accurate budgeting.
Did You Know?
Transfer tax rates differ by municipality. Two homes at the same price can have different closing costs depending on where they’re located.
What Closing Costs Are Not
Common Expenses That are Not Included at Closing
Closing costs do not include:
- Moving expenses
- Home repairs or inspection costs
- Furniture or appliances
- Utility bills or ongoing ownership costs
Keeping these categories separate helps avoid confusion and unrealistic budgeting.
For a broader view of expenses that don’t appear on a settlement statement, you can also review our costs to budget for beyond closing.
Why Closing Costs Are Separate From Commissions
Closing costs and real estate commissions are often discussed together, but they serve different purposes.
Closing costs are taxes, fees, and third-party expenses required to complete a transaction
Commissions are professional service fees for representation, negotiation, and transaction management
Separating these conversations allows clients to clearly understand where their money is going — and to plan with confidence instead of guessing.
For a detailed explanation of how real estate commissions work and how pricing is structured, you can review our Pricing & Fees page.
For a closer look at how closing costs appear on a settlement statement, you can review our line-by-line closing costs page.
Want help estimating your numbers?
Every transaction is different, especially when location, transfer taxes, and financing are involved.
We’re always happy to provide a free, personalized cost review so you can understand your likely closing costs before listing a home or writing an offer.