Moving to Pennsylvania

On cost, Pennsylvania sits a little below the national average.

• The MERIC first quarter 2026 series put the cost of living index at 96.2, ranked 25th.
• Housing is the low component at 84.1, and utilities are above average at 108.4.
• The Tax Foundation puts the effective property tax rate on owner-occupied housing at 1.26 percent.
• The state income tax is a flat 3.07 percent, with local income taxes on top.
• The state sales tax is 6 percent, and the Tax Foundation puts the average combined state and local rate at 6.34 percent.

Expect two car checks beyond registration.

• A newly registered vehicle must pass a safety inspection within ten days, and the inspection repeats every year.
• Vehicles registered in 25 counties, including Philadelphia, Allegheny, Dauphin, Lancaster, Lehigh, and Lackawanna, also need an annual emissions inspection.
• Not every inspection station does emissions.
• If you buy a home, apply for the homestead exclusion by March 1.
• It lowers the assessed value used for school property tax.
• Philadelphia runs its own Homestead Exemption, and the deadline there is December 1.

Get a Pennsylvania driver's license within 60 days

If you hold a non-commercial license from another state, get a Pennsylvania driver's license within 60 days of moving here. Apply in person at a PennDOT Driver License Center. Complete Form DL-180R and take a vision screening. Bring proof of identity and residency and your Social Security card. Surrender your out-of-state license. If it is valid or expired six months or less, you do not take a knowledge test. If it expired more than six months ago, you must start with a learner's permit and take all tests.

Title and register the car within 20 days

Apply for a Pennsylvania title and registration within 20 days of moving here. The agent can only process it if you show a Pennsylvania driver's license or photo ID, so get the license first. Use an authorized agent, such as a notary, dealer, or messenger service, to complete Form MV-1. Bring the out-of-state title in your name, proof of Pennsylvania insurance, and a VIN tracing or VIN verification. If a lender holds the title, it may require you to refinance the loan. Some counties add a $5 fee per year of registration.

No sales tax on a car you owned for six months

Pennsylvania does not charge sales tax on a car you owned for six months before moving here. You also need a valid out-of-state title. List the exemption reason code on Form MV-1. If you owned the car for less than six months, prove that you paid sales tax elsewhere. If you qualify for a tax credit, write the amount on Form MV-1. Otherwise you pay Pennsylvania sales tax.

Pass a safety inspection within 10 days, plus emissions in 25 counties

A newly registered vehicle must pass a safety inspection within ten days. Official inspection stations, such as repair garages, do it. The inspection repeats every year. Vehicles registered in 25 counties also need an annual emissions inspection. Not every inspection station does emissions, so ask before you go. The counties are Allegheny, Beaver, Berks, Blair, Bucks, Cambria, Centre, Chester, Cumberland, Dauphin, Delaware, Erie, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Lycoming, Mercer, Montgomery, Northampton, Philadelphia, Washington, Westmoreland, and York.

Buy insurance that meets the Pennsylvania minimums

You need proof of Pennsylvania insurance to register the car. The minimum bodily injury liability is $15,000 for one person and $30,000 for one accident. The minimum property damage liability is $5,000. The minimum medical benefits coverage is $5,000. It pays medical bills for you and others covered by your policy.

Outside Philadelphia, apply for the homestead exclusion by March 1

If you buy a home to live in, apply to your county assessment office for the homestead exclusion. It reduces the assessed value of your home before school property tax is computed. Only a primary residence qualifies. File by March 1 to get relief for tax years that begin the next July 1 or January 1.

In Philadelphia, apply for the Homestead Exemption by December 1

Philadelphia runs its own Homestead Exemption through the Department of Revenue. It reduces the assessed value of a home you own and live in by $100,000. Apply on the Philadelphia Tax Center, by phone, or by mail. The final deadline is December 1 of each year.