Due to reevaluations, Philly homeowners could see property tax hike of $330, mayor says (2024)

Mayor Cherelle Parker announced on Monday that, due to results of a citywide revaluation of all property values for Tax Year 2025, average homeowners throughout the city, that are signed up for the homestead exemption, will see their property tax increase by $330.

“No one ever wants to see their property taxes go up,” she said, during an event to announce the reevaluated property assessments. “But, unfortunately, that’s not what the law requires.”

The exact rate of the property tax increase will vary by property -- the evaluations reviewed more than 580,000 properties throughout the city, officials said -- but Parker said that the increases are tied to the new property tax evaluations that are required by law.

"Because of the reassessments, average residential property tax bills will go up by about $330 for homeowners signed up for the homestead exemption," Parker said, noting she wanted residents to hear it from her.

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A benefit of these higher property tax assessment, Parker said, would be that because the city's budget allocates 56-percent of property tax revenues for public schools, Philly students will receive $240 million over the next five years.

Parker also noted that, in the recent budget, she and City Council increased the Homestead Exemption from $80,000 to $100,000.

In approving the city budget in June, officials said this will provide a savings of up to $280 on homeowners’ property taxes.

And, she said, the city has a number of financial assistance programs available and promised that city officials would be involved in an outreach campaign to help Philly homeowners access any services that they may be eligible for.

“As challenging as this moment can be, and we recognize that it can be challenging, we are going to make sure that we are communicating directly with every homeowner impacted by the valuations," Parker said.

She also encouraged property owners to enroll in newly expanded tax relief programs that could mitigate the impact of the valuations.

Yet, Parker noted, the increase shouldn't be considered a "new tax," as it was instead an increase tied to property tax reevaluations that were required by law.

“There were no tax rate increases in the proposed or adopted budget," said the mayor.

Officials said, in an afternoon update that valuation notices will be sent to homeowners beginning on Wednesday, August 7, 2024, and updated values for individual properties will appear on property.phila.gov at about the same time.

The new values, officials said, will take effect on Wednesday, January 1, 2025, and affect tax bills in 2025.

And, officials said, real estate tax is due Monday, March 31, 2025.

Last year, the city paused property tax assessments after bringing them back following that three-year break.

Many property owners were surprised, at that time, as values had risen by 31-percent across the city and a quarter of city homeowners saw their values double.

This reportedly caused a flood of appeals to the city's Property Tax Assessment office, which tied up the agency's ability to conduct new assessments.

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Due to reevaluations, Philly homeowners could see property tax hike of $330, mayor says (2024)

FAQs

Due to reevaluations, Philly homeowners could see property tax hike of $330, mayor says? ›

As a result of the citywide revaluation, on average, single-family residential properties will see an increase in their property tax bill of approximately $330 for tax year 2025.

At what age do you stop paying property tax in Pennsylvania? ›

Must be age 60 or older, or, if married, either spouse must be age 60; or be a widow or widower age 50 to 60 years; or permanently disabled and age 18 to 60 years. The applicant must meet the required age by end of the year of application.

How often are properties reassessed in Philadelphia? ›

The last time a property assessment of this size happened in Philadelphia was in 2022. Officials are supposed to reassess every year. “We would like to get to annual, but the goal is regular,” Dubow said in regard to how often reassessments would occur.

What triggers a property tax reassessment Pennsylvania? ›

When Are Property Taxes Assessed In Pennsylvania? Property assessment should be the same every year, except for three triggering events: A building permit or demolition on the property, potentially changing the assessed value.

How can I lower my property taxes in Philadelphia? ›

Get Real Estate Tax relief
  1. Get the Homestead Exemption. ...
  2. Apply for the senior citizen Real Estate Tax freeze. ...
  3. Apply for the Longtime Owner Occupants Program (LOOP) ...
  4. Set up a Real Estate Tax installment plan. ...
  5. Active Duty Tax Credit. ...
  6. Enroll in the Real Estate Tax deferral program.

Who qualifies for property tax rebate in PA? ›

The Property Tax/Rent Rebate program benefits eligible Pennsylvanians age 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older. The income limit is $35,000 a year for homeowners and $15,000 annually for renters. Claimants may exclude half of their Social Security income.

Do seniors pay taxes on lottery winnings in PA? ›

Residents. Pennsylvania taxes resident individuals, estates or trusts on all gambling and lottery winnings from every source, except noncash winnings of the Pennsylvania Lottery, regardless of where the wager is placed.

Did property tax go up in Philadelphia? ›

As a result of the citywide revaluation, on average, single-family residential properties will see an increase in their property tax bill of approximately $330 for tax year 2025.

How does the 10 year tax abatement work in Philadelphia? ›

In order to take advantage of the former 10-year tax abatement program, owners need to submit applications by December 31, 2021. Owners who apply after January 1, 2022, will receive the full 100% during the first year, however, each year the abatement will decrease by 10% until the full tax amount is reached.

How is Philadelphia property tax assessed? ›

To determine assessed values of residential properties, OPA typically considers a number of factors, including: Size and age of a property. A property's location and condition. Recent sales of similar properties in the area, taking into account differences between properties sold and the property being assessed.

What is the most your property taxes can increase? ›

After a property is purchased, the property assessment may increase annually, but no more than 2%.

Do I have to let the tax assessor on my property in PA? ›

Although you do not have to allow an assessor on your property, it is recommended to do so to make sure the information is correct and a fair assessment can be made.

Does PA have a property tax cap? ›

Pennsylvania doesn't have an assessment limit, which likely contributes to the Commonwealth's higher-than-average tax bills. However, property tax relief is available to some homeowners.

How often does Philadelphia reassess property taxes? ›

Philaldelphia Property Taxes are reviewed annually and should be completed each year by March 31st. . However, thanks to the pandemic the city is a bit behind. In 2022 Philly released its first property reassessments since 2019. As of July 2024 we are still waiting on our annual assessments.

What is the Philadelphia homeowner tax credit? ›

The Philadelphia Real Estate Tax Credit program is not only new but also a one-time relief effort for low-income homeowners citywide. Eligible city homeowners could receive a $500 credit to pay their real estate tax bills for 2022 and 2023.

What is the highest property tax in PA? ›

Bucks County, located in eastern Pennsylvania, has some of the highest annual property tax payments in the state. The median annual property tax paid by homeowners in Bucks County is $5,282, which is nearly double the national median. The average effective property tax rate in Bucks County is 1.55%.

Do seniors pay taxes in Pennsylvania? ›

Retirement income is not taxable: Payments from retirement accounts like 401(k)s and IRAs are tax exempt. PA also does not tax income from pensions for residents aged 60 and over. Social Security income is not taxable: Just like with a pension, in Pennsylvania, Social Security is tax exempt.

Who is exempt from paying school taxes in PA? ›

Each school district may exempt any person whose total income from all sources is less than ten thousand dollars per annum from its per capita tax or any portion thereof. The school district may adopt and employ regulations for the processing of claims for the exemption.

What is the Senior Citizen tax Elimination Act? ›

Senior Citizens Tax Elimination Act

This bill repeals the inclusion of any Social Security or tier I railroad retirement benefits in gross income for income tax purposes.

How can I get help paying my property taxes in PA? ›

Pennsylvania Property Tax Rebate

Call 1-888-222- 9190 or look on-line at www.revenue.state.pa.us for more information.

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