Pennsylvania imposes a realty transfer tax on nearly every deed recorded in the state. If you're involved in a real estate transaction in Chester County, you'll pay this tax at closing — and the total rate can range from 2.0% to 3.5% depending on which township, borough, or city the property is located in.
This guide walks through exactly how the calculator works: how the tax base is determined, which rates apply to which locations, how exemptions reduce or eliminate the tax, and how the final numbers are split between buyer and seller. Two worked examples are provided for each step.
Step 1: Determine the Taxable Base
The first thing the calculator does is figure out what amount the tax is actually applied to. Under Pennsylvania law (72 P.S. §8101-D et seq.), the taxable base is the greater of the actual consideration paid or the "computed value" of the property.
For a straightforward arm's-length sale, the taxable base is simply the full sale price plus any liens or mortgages the buyer is assuming. If a buyer is paying $280,000 cash and taking over a $40,000 existing mortgage, the taxable base is $320,000 — not just the cash.
When the stated consideration is unusually low — such as in a gift or a nominal-dollar family transfer — Pennsylvania law requires using the computed value instead. That computed value is the county's assessed value multiplied by the current Common Level Ratio (CLR), which the PA Department of Revenue publishes annually. Chester County's CLR for 2025–2026 is 3.14, meaning a property assessed at $50,000 would have a computed market value of $157,000 for tax purposes.
Example 1A
Standard sale with assumed mortgage
A buyer purchases a home in Phoenixville for $350,000 and assumes the seller's existing mortgage of $60,000.
Taxable base = $350,000 + $60,000 = $410,000
Tax is calculated on $410,000, not just the cash portion.
Example 1B
Low-consideration transfer — CLR applies
A deed is recorded for $1 (a nominal gift transfer). The property's Chester County assessed value is $80,000. The 2025–2026 CLR is 3.14.
Computed value = $80,000 × 3.14 = $251,200
Tax is calculated on $251,200 because it exceeds the stated $1 consideration.
Step 2: Apply the Correct Rate for the Location
Pennsylvania charges a statewide 1.0% realty transfer tax on every covered transfer. On top of that, local governments — municipalities and school districts — are permitted under Act 511 to levy up to an additional 1.0% combined. In most of Chester County, the local share is exactly 1.0%, bringing the total to 2.0%.
However, several Chester County jurisdictions have adopted higher local rates, which are reflected in their municipal ordinances and collected at recording. The table below shows the rates currently in effect:
| Location | State | Municipal | School Dist. | Total Rate |
|---|---|---|---|---|
| Most Chester County municipalities | 1.0% | 1.0% | 0% | 2.0% |
| Malvern Borough | 1.0% | 1.5% | 0% | 2.5% |
| Tredyffrin Township | 1.0% | 1.0% | 0.5% (T-E School Dist.) | 2.5% |
| Coatesville City | 1.0% | 2.5% | 0% | 3.5% |
Sources: PA Department of Revenue (state rate); Malvern Borough Finance Department (borough ordinance); Tredyffrin Township Finance Department (municipal code); Coatesville City Ordinance effective January 1, 2026.
Example 2A
Sale in East Goshen Township (standard rate)
A $275,000 home sale in East Goshen Township. Total rate is 2.0% (1% state + 1% local).
State tax: $275,000 × 1% = $2,750
Local tax: $275,000 × 1% = $2,750
Total transfer tax = $5,500
Example 2B
Sale in Coatesville City (highest rate in Chester County)
A $180,000 home sale in Coatesville City. Total rate is 3.5% (1% state + 2.5% city).
State tax: $180,000 × 1% = $1,800
City tax: $180,000 × 2.5% = $4,500
Total transfer tax = $6,300
Step 3: Adjust for Partial Interest Transfers
Not every deed conveys 100% of a property. When only a partial interest is being transferred — for example, one co-owner selling their share — the taxable base is reduced proportionally. The calculator accepts a percentage interest input (defaulting to 100%) and applies it before running any rate calculations.
This matters in estate settlements, divorce conveyances, partnership restructurings, and other situations where less than the full property changes hands.
Example 3A
50% interest transfer in West Chester Borough
Two co-owners jointly own a property worth $400,000. One sells their 50% share. Standard 2.0% rate applies.
Taxable base: $400,000 × 50% = $200,000
State tax: $200,000 × 1% = $2,000
Local tax: $200,000 × 1% = $2,000
Total transfer tax = $4,000 (on the 50% interest only)
Example 3B
25% interest transfer in Tredyffrin Township
A property worth $600,000. A 25% ownership interest is conveyed. Tredyffrin rate is 2.5%.
Taxable base: $600,000 × 25% = $150,000
State tax: $150,000 × 1% = $1,500
Township tax: $150,000 × 1% = $1,500
School tax: $150,000 × 0.5% = $750
Total transfer tax = $3,750
Step 4: Check for Exemptions
Many common transfers are entirely exempt from Pennsylvania realty transfer tax under 72 P.S. §8102-C. If an exemption applies, the calculator outputs $0 in tax — though a PA Statement of Value (Form REV-183) still needs to be filed with the Chester County Recorder of Deeds to formally claim it.
The most frequently used exemptions include:
Family transfers: Conveyances between spouses, parent and child, siblings, grandparent and grandchild, and their in-law equivalents are fully exempt. This covers both gifts and sales between qualifying relatives.
Government and nonprofit transfers: Deeds to or from municipalities, school districts, the Commonwealth of Pennsylvania, the federal government, and qualifying nonprofit organizations are exempt.
Inheritance and wills: Property passing by will or intestacy (dying without a will) is exempt from the transfer tax.
Mortgage-related transfers: A deed from a mortgagor to the mortgage holder in default is exempt, as are certain releases on paid-off mortgages.
Cemetery and burial plots are also explicitly exempt.
Important one-year clawback rule: If property is transferred tax-free between family members and is then sold to a non-family buyer within 12 months, the original exemption is retroactively voided and the tax becomes due on that first transfer. The PA Department of Revenue can and does audit for this.
Example 4A
Parent-to-child transfer
A parent deeds a $500,000 home in Downingtown to their adult child. No consideration is paid.
Exemption: Family transfer (parent-child) under 72 P.S. §8102-C.
Transfer tax = $0. A Form REV-183 must still be filed claiming the exemption.
Example 4B
Transfer to a municipality
A landowner donates a parcel in Kennett Township to the township for open space preservation.
Exemption: Transfer to government entity.
Transfer tax = $0. Form REV-183 is required at recording.
Step 5: Calculate the Final Tax and Split Between Buyer and Seller
Once the taxable base is confirmed and any exemptions are ruled out, the final calculation is straightforward multiplication. The calculator applies each applicable rate separately — state, municipal, and school district — and sums them into a total.
By Pennsylvania law, both the grantor (seller) and grantee (buyer) are jointly and severally liable for the full tax. In practice, most purchase agreements in Chester County split the tax 50/50 between buyer and seller, though parties are free to negotiate a different arrangement. The split affects who writes the check at settlement — it doesn't change the total amount owed or how the Recorder's office processes it.
At recording, the Chester County Recorder of Deeds requires two separate checks: one for the 1% state share, and one for the applicable local share. Personal checks are no longer accepted — only cashier's checks or money orders. The Recorder's office remits the state portion to the Pennsylvania Department of Revenue and distributes the local share to the appropriate municipality or school district.
Example 5A
$525,000 sale in Malvern Borough, split 50/50
Total rate: 2.5% (1% state + 1.5% borough).
State tax: $525,000 × 1% = $5,250
Borough tax: $525,000 × 1.5% = $7,875
Total tax: $13,125
Seller's share (50%): $6,562.50
Buyer's share (50%): $6,562.50
Total at closing = $13,125 · Two checks required at recording
Example 5B
$750,000 sale in Tredyffrin Township, buyer pays all
Contract specifies buyer pays the full transfer tax. Total rate: 2.5%.
State tax: $750,000 × 1% = $7,500
Township tax: $750,000 × 1% = $7,500
T-E School District tax: $750,000 × 0.5% = $3,750
Total tax: $18,750
Buyer brings $18,750 to closing for transfer tax alone.
When to File Form REV-183 (Statement of Value)
The PA Realty Transfer Tax Statement of Value (Form REV-183), published by the Pennsylvania Department of Revenue, must accompany the deed at recording in two situations: when the deed does not state the full consideration, or when any exemption is being claimed. The form requires the parties to list all cash paid, the value of any assumed liens, and — if applicable — the exemption category being claimed.
The Chester County Recorder of Deeds forwards a copy of every REV-183 to the Pennsylvania Department of Revenue for potential audit. If Revenue later determines the taxable value was understated, it can issue a notice demanding additional tax plus interest. Interest on unpaid realty transfer tax accrues at 6% annually plus an additional 0.5% per month.
The most current version of Form REV-183 is available directly from the Pennsylvania Department of Revenue website (revenue.pa.gov). Always use the current version — the Recorder's office may reject outdated forms.
Key Contacts and Official Sources
Chester County Recorder of Deeds — 313 W. Market St., West Chester, PA 19380. Contact Recorder Diane O'Dwyer's office at (610) 344-6330 for recording fees, form requirements, and jurisdiction-specific questions. The Recorder's office is the point of contact for all transfer tax payments in Chester County.
Pennsylvania Department of Revenue — For state realty transfer tax questions, call (717) 787-8201 or visit revenue.pa.gov. The Department publishes annual CLR factors, the REV-183 form, and the full statutory exemption list.
Municipal finance departments — For questions specific to local rates: Malvern Borough at (610) 644-2602; Tredyffrin Township Finance Department at (610) 644-1400; Coatesville City at (610) 384-0300.
References
- Pennsylvania Department of Revenue — Realty Transfer Tax: statutory rates, exemptions, and Form REV-183. revenue.pa.gov
- Pennsylvania Consolidated Statutes — 72 P.S. §8101-D et seq. (Realty Transfer Tax Act, as amended). Pennsylvania General Assembly.
- Act 511 (Local Tax Enabling Act) — authority for municipal and school district realty transfer taxes in Pennsylvania.
- Chester County Recorder of Deeds — recording fee schedules and local tax collection procedures. Office of Recorder Diane O'Dwyer, West Chester, PA. (610) 344-6330.
- PA Department of Revenue — Common Level Ratio (CLR) factors for 2025–2026. Chester County CLR: 3.14. Published annually per 72 P.S. §4656.
- Malvern Borough Finance Department — Borough realty transfer tax ordinance (1.5% local rate). (610) 644-2602.
- Tredyffrin Township Finance Department — Municipal tax code (1.0% township + 0.5% Tredyffrin-Easttown School District). (610) 644-1400.
- Coatesville City Ordinance — Effective January 1, 2026; city deed transfer tax increased to 2.5% (total rate 3.5%). (610) 384-0300.
- PA Department of Revenue — Form REV-183 (Realty Transfer Tax Statement of Value), 2019 edition. Available at revenue.pa.gov.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Transfer tax rates and rules can change; always verify current rates with the Chester County Recorder of Deeds, the relevant municipality, and the Pennsylvania Department of Revenue before closing. Consult a qualified real estate attorney or settlement agent for advice specific to your transaction.