Closing Costs in Pennsylvania
The average closing cost in Pennsylvania is $16,192, which is 5.65% of the home price. Pennsylvania's transfer tax rate is 1% (each party).
Pennsylvania's closing costs are elevated partly due to the state's real estate transfer tax structure: a 1% state tax plus a 1% local tax (in most jurisdictions), totaling 2% of the sale price. This 2% transfer tax is typically split 1% each between buyer and seller, but the split is negotiable. Attorney fees are mandatory and typically run $1,000-2,500. Title insurance is also a significant cost, particularly in Philadelphia where older properties require extensive title searches.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Avg Closing Costs
$16,192
As % of Price
5.65%
Transfer Tax
2%
Attorney Required
Yes
Closing Cost Breakdown for a $286,397 Home
| Item | Estimated Cost |
|---|---|
| Loan Origination Fee (1%) | $2,291 |
| Appraisal Fee | $500 |
| Credit Report | $50 |
| Title Search & Insurance | $1,432 |
| Transfer Tax | $5,728 |
| Recording Fees | $150 |
| Home Inspection | $400 |
| Survey | $350 |
| Attorney Fee (required) | $1,200 |
| Prepaid Property Tax (2 months) | $568 |
| Prepaid Homeowners Insurance (1 year) | $859 |
| Prepaid Interest (15 days) | $612 |
| Estimated Total | $14,140 |
* Estimates based on average Pennsylvania home price of $286,397 with 20% down payment. Actual costs may vary. Transfer tax, attorney fees, and prepaid items are state-specific.
How to Reduce Closing Costs in Pennsylvania
Understand the 2% Transfer Tax Split
Pennsylvania's combined 2% transfer tax (1% state + 1% local) is typically split 50/50, so your share is 1%. On a $300,000 home, that's $3,000. First-time buyers may qualify for a reduced rate in some jurisdictions — check with your attorney.
Use PHFA Keystone Advantage
The Pennsylvania Housing Finance Agency offers the Keystone Advantage Assistance Loan with up to $6,000 in down payment and closing cost assistance as a no-interest second mortgage. The program works with FHA, VA, USDA, and conventional loans.
Get Underground Tank and Radon Testing
Many Pennsylvania homes had underground heating oil tanks, and radon levels are elevated throughout much of the state due to the geology. Budget $400-600 for combined oil tank sweep and radon testing. Both can create expensive remediation needs if discovered after closing.
Check Tax Abatement Programs in Philadelphia
Philadelphia offers a 10-year property tax abatement on the improvement value of newly constructed or substantially renovated homes. This can save tens of thousands of dollars over the abatement period. Verify whether the property qualifies and how much time remains on any existing abatement.
Legal Context for Pennsylvania Closings
Conveyance Document
Special-warranty or general-warranty deed
Security Instrument
Mortgage
Foreclosure Process
Judicial
Attorney Required
Yes
Pennsylvania uses special-warranty or general-warranty deed for property transfers and mortgage as the security instrument. An attorney is required at closing, which adds to your closing costs.
