Pennsylvania · 124th largest metro area

Buying a home in Reading, Pennsylvania

In Reading, the median value of owner-occupied homes is $121,300, Berks County's effective property tax rate is 1.65%, a purchase mortgage carried a median $7,092 in total loan costs in 2025, and median gross rent is $1,067 a month.

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

Reading home costs, fact by fact

About Reading

Reading is the first-named place of the Reading, PA metro area, ranked 124th among U.S. metro areas. Berks County's effective property tax rate (median tax as a share of home value) is 1.65%, and HUD's two-bedroom Fair Market Rent is $1,418. Just 40.6% of homes are owner-occupied.

Reading the Reading figures

Reading's estimated median of $121,300 is the lowest of the Pennsylvania cities named here, apart from Erie, and far below the statewide $292,400. Harrisburg reports $124,200 and Erie $115,200, so Reading falls between them, while Philadelphia, at $243,100, is higher. Renters pay a median of $1,067 a month, above Harrisburg's $1,062, against HUD's benchmark of $1,418. Berks County's 1.65% rate on a median value of $257,300 yields a $4,239 annual tax, and 3,141 loans in 2025 cost a median $7,092, with a central spread from $5,175 to $9,944. Owners occupy 40.6% of homes, and Pittsburgh reports a value of $205,800.

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 Reading

How much is property tax in Reading?

Homeowners in Berks County pay a median $4,239 a year in property tax, 1.65% of the county median home value of $257,300 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Reading?

Home-purchase mortgages in Berks County carried median total loan costs of $7,092 in 2025; half of the 3,141 loans fell between $5,175 and $9,944 (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 Reading?

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 Reading?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Reading ($121,300) equals 9.5 years of the median gross rent ($1,067 a month), both from Census ACS 2020-2024.

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

Pennsylvania rules that apply in Reading

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Sources

Pennsylvania · All states · Federal guides