*This page will be updated as new information becomes available*
A vote on December 3 by Allentown City Council raised the total Transfer Tax to 2.5 percent. The new rate will take effect January 1, 2026. For context, the standard Transfer Tax (also known as the Home Sales Tax) in the Greater Lehigh Valley and across Pennsylvania is 2 percent. All parties engaged in real estate transactions within the City of Allentown need to be aware of this change and its effective date.
The Greater Lehigh Valley REALTORS® proactively notified the Lehigh County Recorder of Deeds about the increase and is working with the office to understand how it may impact year-end transactions.
GLVR encourages members to ensure that all documentation required for property transfer is submitted to the Lehigh County Recorder of Deeds as soon as possible, and no later than December 30, to ensure it is recorded for 2025. If you have any questions, please communicate with your broker. You can also contact the Recorder of Deeds directly at (610) 782-3162.
The Greater Lehigh Valley REALTORS® last year ran a large-scale campaign in Allentown to oppose the removal of the Transfer Tax from a list of taxes that can’t be raised, per the City’s Home Rule Charter. Voters ultimately approved the change, 54 percent to 46 percent, allowing Council to consider increases to the tax. GLVR has a long-standing policy position on the Transfer Tax: “We are opposed to any increase and, furthermore, believe taxes should be decreased.”
Allentown requires all revenue from the increase be directed to housing programs. The measure also includes a five-year sunset provision. In 2030, a future Mayor and Council will receive an audit of expenditures and decide whether to continue with the increase.
In case you missed it, the City of Easton will not pursue an increase to the Transfer Tax in 2025.