Real Estate Math
A Pennsylvania home sells for $320,000. The state Realty Transfer Tax is 1% and the local municipality tax is 1%. The buyer and seller split the tax equally. How much does each party pay?
A$1,600
B$3,200
C$6,400✓ Correct
D$9,600
Explanation
Total transfer tax = 2% × $320,000 = $6,400. Split equally: $3,200 per party. Pennsylvania's combined 2% Realty Transfer Tax (1% state + 1% local) is typically divided evenly between buyer and seller unless otherwise negotiated.
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