Pennsylvania imposes a realty transfer tax on the sale or transfer of real property. The total rate in most of Bucks County is 2% of the property's value (1% state + 1% local), typically split equally between buyer and seller.
The transfer tax statement of value must be filed with the deed at the Recorder of Deeds. Failure to properly claim an exemption or undervaluing property can result in additional tax, penalties, and interest.
Here's something most people don't know until it costs them money: the Pennsylvania Department of Revenue doesn't just accept the sale price on your deed at face value. They check it against the property's assessed value multiplied by the Common Level Ratio (CLR) factor for your county.
The Formula
Assessed Value × CLR Factor = Computed Fair Market Value
If the sale price on your deed is lower than this computed value, the Department of Revenue will calculate your realty transfer tax based on the higher CLR-derived value — not your actual sale price.
Bucks County has one of the highest CLR factors in Pennsylvania. This is because Bucks County properties are assessed at a small fraction of their actual market value — the county hasn't done a reassessment in decades. The CLR factor bridges that gap.
Say you're selling a property to a family member for $200,000, but the county's assessed value is $15,000.
Because the sale price ($200,000) is lower than the computed value ($255,900), the Department of Revenue will calculate the 2% transfer tax on $255,900 — not $200,000. That's an extra $1,118 in transfer tax you didn't expect.
⚠ Why This Matters
This catches people off guard constantly — especially in family transfers, estate sales, or any transaction where the price is below full market value. If you're transferring property at a discount, you need to either (a) claim a valid exemption, (b) obtain an appraisal showing the actual market value is lower than the CLR computation, or (c) be prepared to pay transfer tax on the higher amount. The CLR factor is updated annually by the State Tax Equalization Board and published by the Department of Revenue.
The CLR factor also comes into play on the Pennsylvania Inheritance Tax Return (REV-1500). When reporting real estate on Schedule A, you must report the property at fair market value — not the assessed value. The Department of Revenue will compare your reported value against Assessed Value × CLR. If your reported value is significantly lower than the CLR-derived value without a supporting appraisal, expect a notice of deficiency and additional tax.
Practical Tip
For any estate with real estate, get a date-of-death appraisal from a licensed appraiser. The cost of an appraisal ($300–$500) is far less than the additional inheritance tax you'll pay if the Department substitutes the CLR-derived value, which often overshoots actual market value. A professional appraisal is your best defense against an inflated assessment.
Bucks County Recorder of Deeds
55 East Court Street, Doylestown, PA 18901
Phone: (215) 348-6209
The Recorder collects realty transfer tax at the time of recording. Documents must meet specific formatting requirements or they will be rejected.
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