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1. What is the real estate transfer tax?

There is a 1% state tax and a 1% local tax on the consideration or value of the property and interest being conveyed, except for State College Borough (3%), Ferguson Township (2.75%), and Taylor Township (1.5%). The state share is forwarded to the Department of Revenue. The local share is split between the municipality in which the real estate is located and the school district which serves that location.

Centre County Tax Rate Table

2. Who pays the transfer tax?

The Recorder of Deeds Office will not accept a deed for recording unless presented with applicable fees for taxes due. In most sales agreements, its common practice for the buyer and seller to divide the tax equally. However, the new owner is responsible if there is any question over the amount of tax paid.

3. Are any transactions exempt?

Yes. Conveyances between husband and wife, parent and children, grandparent and grandchild, brothers and sisters. There are some other exemptions allowed in certain situations. It's best to consult your attorney or contact our office concerning them. In most cases nonprofit corporations are not exempt from real estate transfer tax. A conveyance between ex-spouses is exempt from transfer tax.

4. What is a statement of value?

It is a state form that is used to set the value of a property being conveyed or to explain the reason for an exemption of transfer tax. They must be presented with a deed that is exempt of tax and our office will forward them to the Department of Revenue for review and final approval. Statements of value are required any time the true value of a property is not shown on the deed (such as in a $1 consideration) or when the tax is not paid at recording.