Realty Transfer Tax Increase To Go Into Effect January 1, 2026

  • Realty Transfer Tax Increase To Go Into Effect January 1, 2026
Mayor's Office
December 23, 2025

The City of Allentown is reminding residents, homebuyers, and real estate professionals that an increase to the City’s portion of the Realty Transfer Tax will take effect on January 1, 2026, as provided for under City ordinance.

December 23, 2025 – The City of Allentown is reminding residents, homebuyers, and real estate professionals that an increase to the City’s portion of the Realty Transfer Tax will take effect on January 1, 2026, as provided for under City ordinance.

 

Currently, the total Realty Transfer Tax for properties in the City of Allentown is 2%, which includes a 1% Commonwealth of Pennsylvania tax and a 1% City of Allentown tax. Effective January 1, 2026, the City’s portion will increase by 0.5%, bringing the total Realty Transfer Tax to 2.5% for properties bought and sold in Allentown, unless otherwise exempt. The Commonwealth’s 1% portion remains unchanged.

 

In coordination with the Lehigh County Recorder of Deeds, the City advises that the applicable Realty Transfer Tax rate is determined by when a document is submitted for recording, not by the settlement date.

 

Documents that include Realty Transfer Tax and are submitted to the Lehigh County Recorder of Deeds before 3:45 p.m. on December 31, 2025, either in person or electronically, will be recorded that day and assessed at the current 2% total tax rate. Documents submitted after 3:45 p.m. on December 31, 2025, will be recorded beginning January 2, 2026, in the order received, and will be assessed the new 2.5% total tax rate.

 

The City is issuing this reminder to help ensure clarity for settlements occurring at the end of 2025 and to ensure proper calculations for recordings in the new year.

Ordinance 16179 (1)-1

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