Combined friction on a Philadelphia trade lands around 12% to 14% of price. That is materially higher than suburban Pennsylvania, and it is the number to model on a flip.
Watch out for national calculators. Guides quoting "2% to 5% for buyers" are written for the country as a whole. They understate Philadelphia badly, because they do not carry a buyer's 2.289% share of a 4.578% transfer tax.
Worked on a $300,000 Philadelphia rowhome, 80% loan-to-value, owner-occupied.
| Line item | Amount |
|---|---|
| Transfer tax — buyer's customary half (2.289%) | $6,867 |
| Owner's title insurance, enhanced Homeowner's Policy | $2,381.50 |
| Lender's title policy | $0 — simultaneous issue |
| Title search and examination | $0 — included in the premium |
| Closing Protection Letter | $125.00 |
| Recording — deed | $278.75 |
| Recording — mortgage | $248.75 |
| Appraisal | $600–$800 typical |
| Home inspection | from $299; $399 standard multi-point |
| Loan origination | 0–1% of the loan |
| Prepaid interest, escrow reserves, year-one insurance | lender-set |
Excluding escrows and prepaid interest, that worked example lands near $12,200, about 4.1%. Add reserves and first-year insurance and it reaches 4.5% to 5.5%.
Common inspection add-ons in Philadelphia: radon around $190 alongside a full inspection, termite around $150, sewer scope around $299, lead paint $349 to $449 depending on bedroom count.
First-time buyer? The Philly First Home grant offers up to $10,000 or 6% of the purchase price, whichever is lower, usable toward closing costs as well as down payment. City-funded housing counselling must be completed before you sign the agreement of sale, and income caps apply. Confirm current availability with PHDC.
| Line item | Amount on $300,000 |
|---|---|
| Real estate commission | around $17,130 (5.71% average) |
| Transfer tax — seller's customary half (2.289%) | $6,867 |
| Property Sales Certification (L&I) | $139 |
| Mortgage payoff, per-diem interest, satisfaction recording | balance + $231.75 |
| Water, sewer and municipal lien certifications | pass-through at city cost |
| Outstanding city debt — taxes, water, L&I violations, refuse fees | paid at settlement |
That totals roughly $24,400 to $25,000, about 8.1% to 8.3%. A 6% commission pushes it to around 8.6%.
Pennsylvania law requires one to sell any Philadelphia property. It discloses the zoning classification, the last established use in the zoning record, and uncorrected housing, building, safety and fire violations. Five business days through L&I. No inspection is performed — it is a records disclosure.
Philadelphia does not issue a residential resale Use and Occupancy certificate the way many suburban townships do. And the Philadelphia "Use & Occupancy Tax" is an entirely separate monthly business tax on commercial property — the two are constantly confused.
"Last established use" is not what the listing says. A property marketed as a triplex is often recorded as single-family. The buyer inherits the cost and risk of legalising the gap, may not get a multi-unit rental licence, and may struggle to finance or insure it as configured. Pull the certification and the zoning record before hard money goes down.
Philadelphia Water and PGW are city-owned, so unpaid bills become municipal liens against the real estate rather than personal judgments. They survive a change of ownership and must be cleared at settlement. A private utility like PECO gets a judgment against the person instead.
Water liens can be searched free at water-lien.phila.gov. If a property has no meter, one must be installed within 30 days of settlement — common on long-vacant or gut-rehab buys.
A deed costs $278.75 and a mortgage $248.75 to record in Philadelphia — about $527.50 on a financed purchase. Most Pennsylvania counties are well under $150 per document. The gap is Philadelphia-only surcharges, chiefly a $110 Housing Trust Fund fee and a $15 County Demolition Fund fee.
Since 4 September 2025 the Department of Records automatically checks death records against deed signatories. If the system shows a grantor was already deceased at signing, the deed is not recorded until the flag is cured. Most ordinary transfers pass without delay, but it is one more reason a genuinely instant close is not a thing here.
Philadelphia real estate tax is 1.3998% of assessed value — 0.6159% city plus 0.7839% school district. It runs on the calendar year, is billed in December for the following year, and is due in full by 31 March.
Because it is paid in advance, the proration usually runs in the seller's favour: closing after 31 March on a paid bill, the seller is credited for the stretch from settlement through 31 December. On a $300,000 assessment that is about $11.51 a day, so a mid-September closing credits the seller roughly $1,240. The exact split is contractual, not statutory.
The Homestead Exemption does not come with the house. It takes $100,000 off taxable assessed value, worth up to about $1,399 a year — but only for an owner's primary residence. Investors and rental owners are ineligible. Buy from an owner-occupant and the bill jumps once it drops off.
The 10-year abatement transfers but does not reset. You inherit the remaining years. For permits issued on or after 1 January 2022 the residential abatement phases down annually rather than staying flat. Verify the permit issue date, the type and the expiry year in city records — seller representations are frequently wrong. Underwrite the post-abatement tax.
We close in Philadelphia every day and we will tell you what a specific deal actually costs — including the parts national calculators leave out.
Last reviewed 13 September 2026. Transfer tax rates, Common Level Ratio factors and Philadelphia recording fees all change — the transfer tax changed in July 2025 and the Common Level Ratio factor changes again on 1 January 2027. Figures marked as typical are market estimates, not filed rates. General information, not legal, tax or financial advice.
Talk to a title professional who works in Philadelphia every day — including after 5PM, on weekends, and on holidays.
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