PA vs Alabama Closing Costs

We close in both Pennsylvania and Alabama, which makes a direct comparison easy. Take a $300,000 purchase with $240,000 financed, and run it through both states' published schedules.

Pennsylvania — Dormont, Allegheny County

• Owner's policy, Sale Rate — $2,165.00
• Loan policy — included, simultaneous issue
• Closing protection letter — $125.00
• Realty transfer tax at 2% — $6,000.00
• Recording, deed and mortgage — $400.00

$8,690.00

Alabama — Huntsville, Madison County

• ALTA owner's policy — $975.00
• Loan policy, simultaneous issue — $250.00
• Deed tax, charged on $60,000 of equity — $60.00
• Mortgage tax on $240,000 — $360.00
• Recording, including the RT-1 form — $64.00

$1,709.00

Where the gap comes from

Almost entirely transfer tax. Pennsylvania charges $6,000 on that purchase in a 2% municipality; Alabama charges $60 in deed tax because it is calculated on equity rather than price. That single difference accounts for most of the $6,981 gap.

Move the Pennsylvania property inside Pittsburgh city limits and transfer tax jumps to $15,000 — a total of $17,690, or more than ten times the Alabama figure.

The premium difference is real but secondary

Pennsylvania's filed premium of $2,165 against Alabama's $975 is a meaningful gap, but it is dwarfed by the tax. Pennsylvania's rate is set centrally and is the same at every agent; Alabama's varies by underwriter.

Why this matters if you own in both

Nothing you learned closing in one state transfers usefully to the other. The premium is calculated differently, the tax is calculated on a different base, and the credits available in Alabama have no Pennsylvania equivalent. Budget each on its own terms.

Note: general information for Pennsylvania and Alabama property owners, not legal or tax advice. Rates, taxes, eligibility and deadlines are set by statute and by each state’s filed rate schedules and can change. Confirm the specifics with us and with a qualified professional before relying on them for a transaction.