Beginning Farmer Realty Transfer Tax Exemption

Under Act 13 of 2019, Pennsylvania realty transfer tax is not imposed on the transfer of real estate subject to an agricultural conservation easement (under the Agricultural Area Security Law) to a qualified beginner farmer. The exemption applies to both the seller (grantor) and the buyer (grantee). PDA's Bureau of Farmland Preservation certifies qualified beginner farmer status. This is distinct from PA DCED's Beginning Farmer Tax Credit.

• You qualify as a beginning farmer if you have demonstrated experience or transferable skills, as determined by the Department.

• You have not received federal gross income from agricultural production for more than the 10 most recent taxable years.

• You intend to farm in Pennsylvania and provide the majority of the labor and management.

• You have written certification from the Department.

• The property must already be subject to an agricultural conservation easement (preserved farmland).

Exemption from Pennsylvania realty transfer tax (typically 1% state plus any local realty transfer tax) on the qualifying transfer, applying to both the grantor and the grantee. There is no dollar cap; the benefit depends on the transaction value.

Complete the Application for Act 13 Qualified Beginner Farmer Status and email it to RA-farmland@pa.gov (preferred) or mail to PDA Bureau of Farmland Preservation, 2301 N Cameron St, Harrisburg PA 17110 — at least 30 days before settlement. After certification, file the Realty Transfer Tax Statement of Value (REV-183) with the Recorder of Deeds.