Multi-level transformerless inverters are widely used in grid-tied PV systems since they characterized by higher efficiency and lower cost. In this project, new topologies, modulation, and control schemes were presented to solve problems of a common-mode voltage and leakage current. This project proposes a transformerless five-level inverter with zero leakage current and ability to reduce the harmonic output content for a grid-tied single-phase PV system. The neutral of the grid links to a common on which the negative and the positive terminals of the DC-link are connected via parasitic capacitors that can eliminate the leakage current. The proposed topology, with its inherent circuit structure, leads to boost the overall efficiency. Simulation and experimental results show almost zero leakage current and a high quality output when maintaining balanced capacitor voltages on the DC-link input. The experimental results show 1.07% THD and 96.3 % maximum efficiency when injecting a power of 1.1 kW that verify the performance of the proposed inverter with PV sources.