PA Realty Transfer Tax Exemptions List

Pennsylvania imposes a 1% state realty transfer tax on most transfers of real estate, and most municipalities add a 1% local tax (2% total is typical in Bucks County). But not every transfer is taxable. The Tax Reform Code (72 P.S. § 8102-C.3) lists exemptions that can save thousands of dollars, if you know they exist and structure the transaction correctly.

For the basic calculation, see our Realty Transfer Tax page and Transfer Tax Calculator .

Exemption Summary Table

The full statutory list of "excluded transactions" is at 72 P.S. § 8102-C.3, supplemented by the Department of Revenue regulations at 61 Pa. Code § 91.193. The categories below cover every common exemption Bucks County practitioners encounter at recording. Detailed explanations follow the table.

Subsection numbers refer to 72 P.S. § 8102-C.3 as amended through January 1, 2025, cross-referenced where applicable to 61 Pa. Code § 91.193, the Department of Revenue's implementing regulation. Citations on this page were verified against the source text of both provisions in June 2026. Always confirm the current numbering and any recent amendments before relying on a specific subsection.

Key Exemptions

Family Transfers

Transfers between the following family members are exempt :

• Husband and wife
• Parent and child (including stepchildren and adopted children)
• Grandparent and grandchild
• Brother and sister (including the spouse of a brother or sister)
• Divorced former spouses, for property acquired by either spouse before the final divorce decree

Act 85 of 2012 (P.L.751, No.85) amended 72 P.S. § 8102-C.3(6) to add transfers between a stepparent and a stepchild. The one-year clawback applies to any transfer claimed under the family exemption of 72 P.S. § 8102-C.3(6) (61 Pa. Code § 91.193(b)(6)), not just sibling transfers: if the grantee transfers the property to a non-exempt party within one year, the subsequent transfer is taxed as if the original grantor made it directly.

Two limits apply to the family exemption. The exemption for a child's spouse or a sibling's spouse ends if the child or sibling has died and the spouse has remarried. And the estate of a deceased family member is not a family member for this purpose (61 Pa. Code § 91.193(b)(6)(i)(D), (E), (iii)).

For a deeper look at family transfers specifically, including worked examples for each relationship and the mechanics of the one-year clawback, see PA Realty Transfer Tax: Family Transfers .

Trust Transfers

Transfers to or from a revocable living trust are exempt for no or nominal consideration when the settlor is the only beneficiary who may receive distributions during the settlor’s lifetime. For a transfer into the trust, the recorder of deeds must be shown a copy of the trust instrument (72 P.S. § 8102-C.3(8.1)). This includes:

• Individual to their own revocable trust
• Revocable trust back to the settlor
• Revocable trust, after the settlor’s death, to the beneficiary entitled to receive the property under the trust instrument, for no or nominal consideration (72 P.S. § 8102-C.3(9.1); 61 Pa. Code § 91.156(f))

Transfers to irrevocable trusts may or may not be exempt depending on the trust structure and the relationship between settlor and beneficiaries.

Divorce and Separation

Transfers between current spouses are exempt without condition. Transfers between former spouses are exempt only where the realty was acquired by both spouses, or by either spouse, before or during their marriage (61 Pa. Code § 91.193(b)(6)(i)(F)). Pennsylvania does not require the transfer to be pursuant to a court order or written agreement, nor that it be incident to the divorce.

Estate Administration

Transfers from a decedent ’s estate to beneficiaries or devisees are exempt, but only to the extent the transfer is pursuant to the will or intestacy laws. A sale of estate property to a third party is not exempt .

Entity Transfers

This is where people most often guess wrong, and the guess is expensive. Pennsylvania treats an LLC, corporation, or partnership as a separate person from its owners. A deed from an individual into an entity is fully taxable even if that individual owns 100% of the entity, and even if no money changes hands (61 Pa. Code § 91.154). Unlike New York and some other states, Pennsylvania has no "mere change of identity" or "same beneficial ownership" exemption for deeds into your own company.

The narrow exceptions that do exist run mostly in the other direction or apply to special situations: a distribution from an entity to an owner is exempt only if the owner takes a share matching their ownership percentage and has held the stock or interest for more than two years (72 P.S. § 8102-C.3(13)); transfers by operation of law under a statutory merger or consolidation are exempt unless done primarily to avoid the tax (72 P.S. § 8102-C.3(12)); and real estate devoted to the business of agriculture can pass into a family farm business that the same family at least 75% owns (72 P.S. § 8102-C.3(19)).

Separately, selling the entity instead of the property does not avoid the tax. If 90% or more of a "real estate company" changes hands within three years, the company is treated as acquired and the tax is due on the real estate it holds, computed from assessed value times the common level ratio, with no deed required (72 P.S. § 8102-C.5; 61 Pa. Code § 91.202).

Other Notable Exemptions

• Confirmatory deeds: Deeds that correct an error in a prior deed (no change in ownership)
• Government and religious transfers: Gift, dedication, and condemnation-related transfers to government bodies; transfers between religious organizations; transfers to or by volunteer fire, EMS, and rescue companies
• Foreclosures (mortgage holder only): A deed in lieu of foreclosure to the mortgage holder, or a judicial sale where the mortgage holder is the successful bidder, is exempt. A third party buying at sheriff’s sale pays the tax, but not on the bid price. The tax is computed on the assessed value multiplied by the county common level ratio factor (61 Pa. Code §§ 91.131 and 91.135(1))
• Agricultural conservation easements: Qualifying agricultural transfers

Common Traps

• Adding a name to a deed: Adding someone outside the family exemption , such as an unmarried partner, a friend, a niece, or a nephew, to your deed as a joint tenant is generally a taxable transfer of the share you give up (half, if you are the only owner and add one person). Adding a spouse, child, stepchild, grandchild, or sibling is generally exempt under the family exemption.
• Deeding property into your own LLC: This is fully taxable, even if you own 100% of the LLC and no money changes hands. Pennsylvania treats the entity as a separate person (61 Pa. Code § 91.154), and the only same-family carve-out is for farm real estate going into a family farm business. Buying in your personal name and deeding into the LLC later means paying the transfer tax twice; if the LLC will hold the property, have the LLC take title at closing
• Selling the LLC instead of the property: Transferring 90% or more of a real estate company’s ownership interests within three years makes it an "acquired" company, and the tax is due on its real estate with no deed required (72 P.S. § 8102-C.5)
• Assuming the exemption applies: For most exemptions, you must claim it on the Statement of Value form filed with the Recorder of Deeds, and failing to claim it can result in assessment of the full tax. The family-relationship exemption is an exception: 72 P.S. § 8109-C(a) excuses a transfer that is wholly exempt on family relationship from the Statement of Value filing requirement itself, though the Department of Revenue recommends filing one anyway

Do not pay tax you do not owe. If you are transferring property in Bucks County and want to confirm the right exemption before you record, schedule a consultation or call 215-949-0888.

Legal and factual content on this page was last verified: Sep. 2026. If you are reading this significantly after that date, confirm key provisions with current statute text or contact our office.