Philadelphia property owners may face higher real estate tax bills as the city resumes property reassessments. However, some owners could benefit from new property tax relief measures introduced by the city. These measures include an increased homestead exemption and a tax bill freeze for certain low-income homeowners.
Although Philadelphia’s latest budget does not include any new tax rate increases, the resumption of property reassessments—halted during the previous mayoral administration—will likely result in higher property taxes, especially in areas with strong real estate markets. To help mitigate these increases, homeowners can take advantage of the newly introduced property tax relief options.
Lawmakers have raised the homestead exemption from $80,000 to $100,000. For example, if your home is assessed at $250,000, it will now be taxed as if it is valued at $150,000. Homeowners with properties valued below $100,000 will owe no taxes, while those with higher-valued properties could save an additional $280. This savings is on top of the $1,000 already saved with the previous $80,000 exemption.
There are no income requirements to qualify for the homestead exemption—any homeowner who lives in their property is eligible. Even those who owe back taxes or mortgage payments can apply. Homeowners can submit their application online, by mail, or by calling the city’s hotline. If you already receive the homestead exemption, you do not need to reapply to benefit from the increased exemption. The deadline to apply each year is December 1, and the program is expected to cost the city approximately $21 million this year.
Another new relief measure is aimed at low-income homeowners. Previously, low-income seniors were allowed to freeze their tax bills to protect against increases due to reassessments or tax rate hikes. Now, under newly approved legislation, approximately 60,000 low-income homeowners can also freeze their tax bills. This initiative was made possible by legislation passed by the Pennsylvania General Assembly, granting municipalities the authority to implement property tax freezes for low-income residents.
Individual homeowners earning less than $33,500 annually (or less than $41,500 for married couples) are eligible for the tax freeze, based on state law income thresholds. The program is expected to cost the city around $2 million annually. Seniors can apply for the tax freeze online or by mailing the completed form to the relevant authority. Further details on how to apply under the new legislation will be provided soon.