Pennsylvania · 188th largest metro area

Buying a home in Erie, Pennsylvania

In Erie, the median value of owner-occupied homes is $115,200, Erie County's effective property tax rate is 1.6%, a purchase mortgage carried a median $5,470 in total loan costs in 2025, and median gross rent is $870 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Erie home costs, fact by fact

About Erie

Erie gives its name to the Erie, PA metro area, ranked 188th in the nation. The median home value is $115,200, estimated by owners and not a sale price, and 54.1% of homes are owner-occupied. Erie County's effective property tax rate (median tax as a share of home value) is 1.6%, and HUD's two-bedroom Fair Market Rent is $1,091.

Reading the Erie figures

Erie's owner-estimated median value of $115,200 is far below the Pennsylvania statewide median of $292,400. Philadelphia reports $243,100, Pittsburgh reports $205,800, and Allentown sits just above that, with $206,600. Harrisburg comes in lower, with $124,200, and Reading is lower still, with $121,300. Median gross rent of $870 is below Philadelphia's $1,397, and HUD's Fair Market Rent for a mid-sized apartment is $1,091, a benchmark rather than a market median. Erie County's effective property tax rate of 1.6% produces a median bill of $2,830 a year. County loan costs in 2025 had a median of $5,470, within a central band of $4,131 to $7,518.

Calculate for Pennsylvania

If you buy

Pennsylvania state transfer tax

Realty transfer tax: 1% of the value of the property. Change the price: the amount is recalculated instantly.

Price$292,400
State transfer tax$2,924
Share of the price1% of the price
Who paysShared by buyer and seller

Default price: the Pennsylvania median value of owner-occupied homes, $292,400 (Census ACS 2025). Rule: 1% of the value of the real estate, including contracted-for improvements, plus assumed debt. For transfers with no sale price, such as gifts or foreclosures, the base is assessed value times the Department of Revenue's Common Level Ratio factor for the county. Plus Philadelphia's city share of 3.578% (since July 1, 2025), 4.578% in total with the state (City of Philadelphia). Who pays: The state holds seller and buyer jointly and severally liable. In Philadelphia the tax is usually split evenly but this is not required, and the city can collect 100% from either party; the contract decides the split. Not included: other county and city transfer taxes, recording fees, title insurance and lender charges. Pennsylvania transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Pennsylvania state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Erie

How much is property tax in Erie?

Homeowners in Erie County pay a median $2,830 a year in property tax, 1.6% of the county median home value of $177,000 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Erie?

Home-purchase mortgages in Erie County carried median total loan costs of $5,470 in 2025; half of the 1,829 loans fell between $4,131 and $7,518 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Erie?

Pennsylvania's realty transfer tax is 1% of the value of the property, and counties and municipalities add a local tax; Philadelphia adds 3.578% for a total of 4.578%. Both buyer and seller are liable to the state, and in Philadelphia the tax is usually split evenly.

Is it cheaper to rent or buy in Erie?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Erie ($115,200) equals 11 years of the median gross rent ($870 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Pennsylvania rules that apply in Erie

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Sources

Pennsylvania · All states · Federal guides