ALLENTOWN, Pa. – Buying or selling property in Allentown will soon cost more, with a higher realty transfer tax set to take effect at the start of 2026.
The City of Allentown is reminding residents, homebuyers, and real estate professionals that an increase to the city’s portion of the Realty Transfer Tax will take effect on Jan. 1, 2026, as provided for under City ordinance, according to a press release from the city.
Officials say currently, the total Realty Transfer Tax for properties in the City of Allentown is 2%, which includes a 1% Commonwealth of Pennsylvania tax and a 1% City of Allentown tax.
Effective Jan. 1, 2026, the city’s portion will increase by 0.5%, bringing the total Realty Transfer Tax to 2.5% for properties bought and sold in Allentown, unless otherwise exempt, according to authorities. The Commonwealth’s 1% portion remains unchanged.
The release says in coordination with the Lehigh County Recorder of Deeds, the city advises that the applicable Realty Transfer Tax rate is determined by when a document is submitted for recording, not by the settlement date.
Documents that include Realty Transfer Tax and are submitted to the Lehigh County Recorder of Deeds before 3:45 p.m. on Dec. 31, either in person or electronically, will be recorded that day and assessed at the current 2% total tax rate, according to city officials.
Authorities say documents submitted after 3:45 p.m. on Dec.31, will be recorded beginning Jan. 2, 2026, in the order received, and will be assessed the new 2.5% total tax rate.
The city says they are issuing this reminder to help ensure clarity for settlements occurring at the end of 2025 and to ensure proper calculations for recordings in the new year.
Additional information, including the full ordinance, is available on the City of Allentown’s website.