How to use the transfer tax calculator
Pick the state first, because that loads the statewide rate or tier schedule. Then enter the price and any local tax, and set how the bill is split.
- State: prefills the statewide rate or tiers for an investment property sale. States with no statewide transfer tax load a 0% rate.
- Sale price: the full contract price, which is the base for most transfer taxes. Some states tax the full consideration even when the buyer assumes your loan.
- Local / county / city add-on rate (%): any extra tax charged by the county, city, town or school district where the property sits. Enter 0 if there isn’t one.
- Seller’s share of the tax (%): the share you will pay under the contract. Use 100% if the seller pays by law or custom, 50% for an even split, or whatever you negotiate.
What the results mean
The calculator returns six numbers:
- State transfer tax: the statewide tax on the sale price, using the flat rate or the tier schedule for that state.
- Local transfer tax: the sale price times the local add-on rate you entered.
- Total transfer tax: state plus local.
- Effective rate: the total tax divided by the sale price. With tiers, this shows the blended rate you actually pay.
- Seller’s share: the total times your share percentage.
- Buyer’s share: whatever is left after the seller’s share.
How is real estate transfer tax calculated?
Real estate transfer tax is calculated by applying a rate to the sale price, and states use three main structures to do it. Some charge a flat amount per $500 or $1,000 of price. Others use marginal tiers, where each rate applies only to the slice of the price inside its band. A few use whole-price tiers, where the price you land on sets one rate for the entire amount.
The method makes a big difference on large sales. Under marginal tiers, crossing a threshold only raises the tax on the dollars above it. Under whole-price tiers, going $1 over the line raises the rate on the entire price, so buyers and sellers sometimes negotiate to stay under those cutoffs.
| Structure | How it works | Verified example |
|---|---|---|
| Flat per $500 or $1,000 | A set amount for each $500 or $1,000 of price, rounded up | New York State: $2 per $500, or 0.4% |
| Flat percentage | One rate on the whole price | Pennsylvania: 1% state tax on the value of the real estate |
| Marginal tiers | Each rate applies only to the portion of price in its band | Washington REET: 1.1%, 1.28%, 2.75% and 3.0% bands |
| Whole-price tiers | The price bracket sets one rate for the full price | New York City RPTT on commercial property: 1.425% up to $500,000, 2.625% above |
Worked example: a $2,000,000 sale in Pennsylvania
With the default inputs, a building in Pennsylvania sells for $2,000,000, the state realty transfer tax is 1% under 72 P.S. § 8102-C, the local rate is set at 1%, and the buyer and seller split the bill 50/50. The state tax is $2,000,000 × 1% = $20,000 and the local tax is another $20,000.
That makes the total $40,000, an effective rate of 2%. The seller’s 50% share is $20,000 and the buyer pays the other $20,000. A 1% local rate is common in Pennsylvania, but some municipalities charge more, so enter the rate for the property’s own town and school district.
| Line | Amount |
|---|---|
| Sale price | $2,000,000 |
| State realty transfer tax (1%) | $20,000 |
| Local transfer tax (1%) | $20,000 |
| Total transfer tax | $40,000 |
| Effective rate | 2.0% |
| Seller’s share (50%) | $20,000 |
| Buyer’s share (50%) | $20,000 |
Who pays the transfer tax, the buyer or the seller?
Who pays the transfer tax is usually set by state law and local custom, and in most places the purchase contract can change it. Some statutes put the tax on the seller. Others make both parties liable and leave the split to custom.
Pennsylvania holds the grantor and grantee jointly and severally liable, and in practice the tax is typically split between buyer and seller. New York State charges its base transfer tax to the seller (the grantor) unless the contract says otherwise or the seller is exempt. Washington’s REET is, by statute, the seller’s obligation.
Whatever the custom, put the split in the contract. On a $2,000,000 Pennsylvania sale with a 1% local rate, moving from a 50/50 split to the seller paying everything costs the seller another $20,000.
What local transfer taxes get added to the state rate?
Many counties, cities and school districts charge their own transfer tax on top of the state’s, and on big-city sales the local tax can be larger than the state tax. That’s why the calculator asks for the local rate separately.
Philadelphia is a clear case. Since July 1, 2025, the city’s realty transfer tax is 3.578%, which with the 1% state tax makes 4.578%. On a $2,000,000 sale that’s $91,560, or $45,780 each if the parties split it evenly.
| Place | Tax on an apartment building sale | Tax on a $5,000,000 sale |
|---|---|---|
| Philadelphia | 1% state + 3.578% city = 4.578% | $228,900 |
| New York City | 0.4% state + 0.25% additional state base tax on non-residential sales of $2,000,000 or more, plus 2.625% city RPTT | $32,500 state + $131,250 city = $163,750 |
| Washington (state REET only) | Marginal tiers of 1.1%, 1.28%, 2.75% and 3.0%; local REET is extra | $119,075 before local REET |
How New York City and Washington handle apartment building sales
In New York, an apartment building with more than three units isn’t “residential” for transfer tax purposes, so it is taxed at the commercial rates. The state charges $2 per $500, plus an additional base tax of $1.25 per $500 on non-residential sales in New York City of $2,000,000 or more, for 0.65% combined. The city RPTT for commercial property is 2.625% of the whole price above $500,000.
Washington’s REET works the other way, with marginal tiers. For 2026 the state rate is 1.1% on the first $525,000, 1.28% up to $1,525,000, 2.75% up to $3,025,000 and 3.0% above that. On a $5,000,000 sale that’s $5,775 + $12,800 + $41,250 + $59,250 = $119,075, an effective state rate of about 2.38%. Cities and counties add local REET, and the thresholds are set to rise on January 1, 2027.
The calculator applies one local percentage to the full price. Because the extra 0.25% applies only in New York City, add it to the city’s 2.625% and enter 2.875% as the local rate for a city sale of $2,000,000 or more, with New York’s 0.4% as the state rate.
Which states have no real estate transfer tax?
A few states have no statewide real estate transfer tax, and some write that into their constitutions. Montana’s constitution bars the state and local governments from taxing the sale or transfer of real property. Texas amended its constitution so that no law enacted after January 1, 2016 may impose a transfer tax on a sale of fee simple title.
No transfer tax doesn’t mean no closing costs. You’ll still pay recording fees and title and escrow charges, and in some places a mortgage tax or a local fee. For those states the calculator sets the state rate to 0%, and you can still enter any local charge.
How transfer tax fits into the cost of selling a 5+ unit apartment building
On a 5+ unit building, transfer tax is a closing cost paid in cash at the sale, and it comes on top of the tax on your gain. In Georgia, the state tax is only $1 for the first $1,000 and 10 cents for each $100 after that, so a $2,000,000 sale owes $2,000. In Philadelphia, the same price carries $91,560.
Transfer tax is also separate from income tax. Capital gains tax and depreciation recapture are calculated on your gain, while transfer tax is calculated on the price. A 1031 exchange can defer the income tax but usually doesn’t remove the transfer tax, since the deed still records.
Keep an eye on entity sales, too. Several states, including New York and Washington, tax the transfer of a controlling interest in an entity that owns real estate, so selling the LLC instead of the building won’t always avoid the tax. Have your title company or CPA confirm the rule in your state before you structure a deal.
Find your state’s transfer tax rules
Every state has its own page at /{state}-transfer-tax/ with the rate, who pays, local add-ons, exemptions and a worked example. Pennsylvania owners can start at /pennsylvania-transfer-tax/ and Washington owners at /washington-transfer-tax/. Our real estate transfer tax guide explains how the tax works across the country.
Selling your apartment building? Get a direct offer
Once you know what the transfer tax will cost, you can compare offers on what you’ll actually net. Skyline Capital Investments buys apartment buildings with 5+ units nationwide as a direct buyer, can consider seller financing on part of the price and is open to working within 1031 exchange timelines.
Send the address and unit count through the form on this page or call (469) 660-2977, and we typically respond within 48 hours.
