Coatesville City Council has approved an ordinance raising the city’s real estate transfer tax from 2% to 2.5%, effective Jan. 1, 2026, to generate an estimated $180,000 in additional revenue for general operations in next year's budget. A half-percent of the 2.5% that will be collected by the city will continue to go to the Coatesville Area School District. The Suburban Realtors Alliance voiced opposition to the increase, arguing it unfairly targets homebuyers and sellers. “As the transfer tax is levied only on buyers and sellers of property, the burden per taxpayer is much greater than the burden from a more broad-based tax designed to generate the same amount of revenue,” said Jamie Ridge, Alliance president/CEO. In a letter to city council members, he noted that the higher rate could discourage homeownership in Coatesville, where less than half of residents own homes. Ridge also warned the tax would make housing less affordable for first-time buyers and create unreliable revenue tied to fluctuating market conditions. Coatesville has the highest transfer tax in Chester County. Factoring in Pennsylvania's 1% transfer tax, the total transfer tax in the City of Coatesville will be 3.5% in 2026. The tax increase only applies to properties within the City of Coatesville — it does not apply to properties located in surrounding municipalities.
Source: City of Coatesville; 10/27/2025
Note: This brief was updated 10/31/2025 to clarify the transfer taxes paid to the school district and the state.