Bill > HB842

This bill amends the Tax Reform Code of 1971 to provide tax deductions related to residential property transfers, effective for taxable years beginning after December 31, 2025. The bill creates two primary deduction scenarios: first, for buyers who are collecting Supplemental Security Income (SSI) or have a household income at or below 215% of the Federal poverty level, the entire realty transfer tax paid can be deducted from the buyer's taxable income. Second, for residential property transfers where the purchase price is not more than 80% of the county's median residential property price, both the buyer and seller can deduct the transfer tax from their taxable income. To implement this, county recorders of deeds must submit documentation establishing the median residential property price to the department by January 31st each year, starting in 2026. The bill also specifies that if the deduction exceeds the tax due, no refund or carryover credit will be allowed. The legislation is designed to provide tax relief for lower-income home buyers and sellers, potentially making property transfers more affordable in certain circumstances, and will take effect 60 days after its enactment.

Housing and Urban Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=842