What Closing Costs Should Sellers Expect in Pennsylvania (2026 Update)?

By Chris Troxell Team April 13, 2026

If you are planning to list your property among the Lehigh Valley homes for sale this year, the most important number is not your gross sale price; it is your net proceeds. In Pennsylvania, sellers are responsible for a specific set of fees and taxes that can drastically impact the final check you receive at the closing table. As of April 2026, there have been significant updates to local tax laws, particularly within the Allentown city limits, that every seller needs to understand before signing a contract.

The 2026 Allentown Realty Transfer Tax Increase

The biggest change for 2026 involves the Realty Transfer Tax. While the standard transfer tax across much of the Lehigh Valley and Pennsylvania remains 2 percent (usually split 1 percent to the buyer and 1 percent to the seller), Allentown has implemented a new rate.

Effective January 1, 2026, the total transfer tax for properties sold within the City of Allentown has increased to 2.5 percent.

The Breakdown: 1 percent goes to the Commonwealth of Pennsylvania, and 1.5 percent goes to the City of Allentown (specifically earmarked for local housing programs).
The Impact: On a $300,000 home sale in Allentown, the total tax is now $7,500. If split traditionally, the seller is responsible for $3,750, representing a significant increase compared to previous years.

Standard Seller Closing Costs in the Lehigh Valley

Beyond the transfer tax, sellers should budget for these standard closing costs that are customary in Pennsylvania real estate transactions.

Professional Commissions

This expense covers the marketing, staging, and negotiation services provided by real estate agents such as the Chris Troxell Team, as well as the compensation for the buyer's agent.

Broker Service Fees

A standard administrative fee charged by most brokerages to cover document storage and compliance.

Prorated Property Taxes

In Pennsylvania, property taxes are paid in advance or arrears, depending on the county. You will either receive a credit or owe a balance for the days you owned the home during the current tax cycle.

Deed Preparation and Notary Fees

Small but necessary fees to legally transfer the title from your name to the buyer.

Mortgage Payoff and Recording Fees

Your closing attorney will coordinate the payoff of your existing mortgage balance and the official recording of the satisfaction of that loan with the county.

Real estate negotiation and repair credits

Hidden Costs: Seller Concessions and Repairs

In the 2026 balanced market, we are seeing a return of seller concessions. Buyers may ask for a closing cost credit (often 1 to 3 percent of the sale price) to help them buy down their interest rate.

Additionally, if a home inspection reveals issues, you may choose to provide a repair credit rather than fixing the items yourself. These are negotiated directly off the top and will reduce your final net proceeds.

Pro Tip: The Chris Troxell Team recommends a pre-listing inspection for every seller. Knowing what repairs are needed before you go under contract gives you negotiating power and prevents surprises at the closing table.

How to Calculate Your Net Proceeds

A professional Seller Net Sheet is the only way to get a true estimate of what you will walk away with. At the Chris Troxell Team, we provide an itemized breakdown for every offer received, ensuring there are no surprises at the 11th hour.

Key Considerations by Location:

Easton and Bethlehem: Your transfer tax remains at the standard 2 percent (1 percent buyer, 1 percent seller).

Allentown (City Limits): We will help you factor that extra 0.5 percent into your pricing strategy to ensure your financial goals are met.

Understanding these numbers before you list ensures you price your home correctly from day one. Contact us for a complimentary Seller Net Sheet.

Pennsylvania Closing Cost FAQs

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