A property sells for $310,000. Pennsylvania state transfer tax is 1% and local transfer tax is 1%, split equally between buyer and seller. How much does the buyer pay in transfer tax?

Explanation

Total transfer tax = 2% × $310,000 = $6,200. Split equally: buyer pays $3,100 and seller pays $3,100. But per standard Pennsylvania custom, buyer pays half of total: $6,200 ÷ 2 = $3,100. Buyer's share = $3,100. The answer $1,550 represents only the buyer's share of the state portion (0.5% × $310,000 = $1,550). Since buyer and seller each pay 1%: buyer pays $3,100.