Short answer: Realty transfer tax is usually the largest government charge at closing, and the rate depends on which state the house is in. In most of Pennsylvania it totals about 2% of the price (a 1% state tax plus a local tax that is commonly 1%), customarily split between buyer and seller. In New Castle County, Delaware it totals 4% (2.5% state plus 1.5% county or city), typically split equally. In Cecil County, Maryland you pay a 0.5% state transfer tax, a 0.5% county transfer tax and a recordation tax of $4.10 per $500, shared equally by default, except that for a qualifying first-time Maryland buyer the law shifts those taxes to the seller unless the contract says otherwise.
I'm Brian Foraker, owner of Foraker Realty Co. We're licensed in Pennsylvania, Delaware and Maryland, and our headquarters in Kennett Square is a short drive from both the Delaware and Maryland lines. Buyers searching on both sides of a line ask me about this all the time, because the difference shows up as real money on the settlement statement. Last reviewed October 12, 2026. This is general information, not tax or legal advice; your title company or settlement attorney confirms the exact figures for your deal.
How much is transfer tax in Pennsylvania?
Pennsylvania charges a 1% state realty transfer tax when a deed is recorded, and local governments add their own realty transfer tax. The Department of Revenue describes that local tax as 1% in most places, higher in some, and locals can divide their share between the municipality and the school district. So in most Chester County towns the combined rate lands around 2%, but always confirm the local rate for the specific municipality and school district.
Who pays? Pennsylvania law makes the buyer and seller jointly liable for the tax. In practice, the custom in our area is to split it 50/50, and the agreement of sale spells out the split. It is negotiable.
Common exemptions: the Department of Revenue lists certain transfers between family members, transfers to government bodies and transfers by will or inheritance, among others. Ordinary arm's-length sales are taxed.
How much is transfer tax in Delaware?
Delaware's state realty transfer tax is 2.5% where a county or town also levies a tax, and 3% where none does. In New Castle County, the county (or a city such as Wilmington) levies 1.5%, so the combined rate is 4% for most of our Delaware sales, from Hockessin and Newark to Bear and Middletown.
Who pays? The Delaware Division of Revenue says the tax is typically shared equally by buyer and seller, so each side usually pays 2%. Like Pennsylvania, the contract controls.
Is there a first-time homebuyer transfer tax break in Delaware?
Yes. A first-time buyer gets a 0.5% reduction in the buyer's share of the state tax, applied to the first $400,000 of price, so the most it can save is $2,000. To qualify, every buyer must be an individual who has never held a direct legal interest in residential real estate and must intend to live in the home as a principal residence within 90 days of closing. It's claimed at settlement, not after.
How much is transfer tax in Maryland, and what does Cecil County add?
Maryland stacks three charges:
- State transfer tax: 0.5% of the price (Tax-Property § 13-203).
- Cecil County transfer tax: 0.5% (Maryland Department of Legislative Services, FY 2026 rates).
- Cecil County recordation tax: $4.10 per $500 of price, which works out to 0.82%.
Who pays? Maryland's default rule (Real Property § 14-104) is that the recordation tax and the state and local transfer taxes are shared equally unless the contract says otherwise.
What changes for a first-time buyer in Maryland?
Two things. First, the state transfer tax drops to 0.25% for a first-time Maryland home buyer who will live in the home. Second, for an improved residential property sold to that buyer, the seller pays the entire state transfer tax, the recordation tax and the local transfer tax, unless the parties expressly agree otherwise in writing. A "first-time Maryland home buyer" is someone who has never owned a home in Maryland as their principal residence, and the buyer signs a statement under oath at closing. If you're selling in Elkton, North East or Rising Sun, ask your agent early whether your buyer qualifies, because it changes your net.
What does that look like on a $400,000 house?
| Pennsylvania (1% local) | New Castle County, DE | Cecil County, MD | |
|---|---|---|---|
| Total transfer and recordation taxes | $8,000 | $16,000 | $7,280 |
| Typical buyer share | $4,000 | $8,000 | $3,640 |
| Typical seller share | $4,000 | $8,000 | $3,640 |
| First-time buyer | No statewide break | Buyer saves up to $2,000 (pays $6,000) | Seller pays $6,280, buyer $0 by default |
The Maryland first-time line uses the 0.25% state rate ($1,000) plus the county transfer tax ($2,000) and recordation tax ($3,280). Other closing costs (title insurance, lender fees, prorated property taxes) are separate.
Does transfer tax change where I should buy?
It shouldn't be the only reason, but it's a fair line item to compare. On a $400,000 house, a Delaware buyer's typical share is about double a Pennsylvania buyer's, while Delaware's property taxes and other costs differ too. It's a side-by-side worth running if you're looking at Kennett Square, Landenberg, Hockessin and Elkton in the same week, and it's one reason we're licensed in all three states. You don't need three agents to compare three states.
If you want to see how this lands on your own closing statement, read What's on a seller's closing statement, start on our buying or selling pages, or call us at (484) 406-3004.
Sources
- Pennsylvania Department of Revenue, Realty Transfer Tax and new home construction guidance
- Delaware Division of Revenue, First-Time Home Buyer Tax Credit
- New Castle County, Transfer Tax
- Maryland Code, Tax-Property § 13-203 and Real Property § 14-104
- Maryland Department of Legislative Services, County and Local Tax Rates, FY 2026
- Cecil County Circuit Court, Recording Fees and Taxes