Allentown City Council is proposing a 0.5% increase to the real estate transfer tax. The proposal is being advanced by members of Council as an amendment to the Mayor’s budget. For context, the standard Transfer Tax (also known as the Home Sales Tax) in the Greater Lehigh Valley and across Pennsylvania is 2%.

Last year, the Greater Lehigh Valley REALTORS® 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% to 46%, 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 Council will receive an audit of expenditures and decide whether to continue the increase.

Allentown City Council is scheduled to vote on the proposed ordinance to raise the Transfer Tax on Wednesday, December 3, 2025.