Property Tax in Philadelphia (2022)

There is no city richer in American history than Philadelphia. It offers a fantastic art scene, the best food in the country, and some valuable real estate. If you own some of that real estate, you will have to pay property tax on it. 

Philadelphia property taxes are higher than in the rest of the country. The national average is 1.08% and Philly residents pay 1.58% of the home value annually. 

They have one of the less expensive tax rates in the state of Pennsylvania. People in Lancaster County and Cumberland County pay more. Property owners in Chester County have the highest property tax rate in the state. If you are a homeowner in Philadelphia, you will be required to pay property taxes each year.

Your property taxes are because of the Department of Revenue on March 31 of each year. People who own their homes must pay by this date or face fines and penalties. They can charge you penalties of as much as 15% of the amount you owe.

The county can even sell your property out from under you if you get too far behind. If the county evicts, the delinquent will have to pay sheriff’s fees, court filing fees, and home improvement costs. You might also have to hire an attorney.

Finding a new home can be very expensive. Even if you decide to rent, you will have to pay deposits and application fees if you wish to keep your home. Losing your home can destroy your credit as well. You may have a hard time finding a loan if you have lost a home in the past.

If you have a mortgage, they will include the cost of your taxes on your monthly payments. You may not get a separate bill.

figuring out a tax rate

Figuring Out a Tax Rate

Like many places in the USA, Pennsylvania counties use a mill levy when estimating property taxes. A mill levy assesses the revenue a school district or town requires per year. A mill rate is the amount of tax that a property owner will pay per dollar of the value of a property. 

Different municipalities have different rates. There are strict rules governing tax assessors and tax uniformity across the state.

The county tax assessor will determine the exact tax bill. You can find out your estimated property tax by visiting the state assessor office website at https://www.phila.gov/departments/office-of-property-assessment/

The new factors that determine the overall value will be are:

  • Location 
  • Condition
  • Age 
  • Size
  • Market Value
  • Use of the property (residential or business)

Are you having a difficult time paying your taxes or want to save money? Please know that there are property tax exemptions.

Tax Abatements

A tax abatement is a tax break that applies to new properties constructed on vacant land. Instead of being taxed on the value of the property, they will tax the owner on the value of the land alone. They will not have to pay taxes on the home for the first 10 years. The abatement was created to encourage residential developments in the city.

Homesteader’s Exemptions 

If you own the property in which you live, you could qualify for a Homesteader’s Exception, which is a tax rebate program. You do not need to own your home outright for this exemption. It doesn’t matter if you owe back taxes or have liens on your property, either. 

You can only get this exception for the home you live in. When you use this program, your property value will be reduced by $4500. This works out to savings of over $600 for most people. 

You only have to apply for this exemption once. You will be able to use it for as long as you live on the property. If you move out and move back in again, reapply.

The only way a homeowner who lives on their property will not be able to get this exemption is if they currently have a 10-year tax abatement. The abatement must end before you qualify for a homesteaders’ exemption.

Property Tax Exemptions for Seniors and Disabled People 

The Pennsylvania State Lottery is good for more than just making people instant millionaires. The lottery supports the property tax rebate program. Although an elderly or disabled person may not be completely exempt from paying taxes, the state offers them a rebate. 

This program offers a real estate tax rebate of up to $650. You can get supplemental rebates of up to $975 in Philadelphia County.

They set the rebate program up as a tax relief program to benefit economically disadvantaged people. You will qualify for this rebate if you fall into one of the following categories:

  • Widows or widowers who are over 50 years old.
  • People who are over 65.
  • Disabled people who are over 18.

Homeowners with incomes of under $35,000 a year and renters with incomes of under $15,000 a year qualify for the program. If you were on social security, half of your income is excluded from this amount. You can apply for this rebate online through the MyPATH system. They will need documentation such as your income tax returns. 

Property Tax Exemption for Disabled Veterans 

If you are a veteran who served your country during a period of war, you may be exempt from paying property tax in Pennsylvania. A “period of war” is determined by the Department of Veterans Affairs. Although a war officially takes place from the time one country declares war in another to the time a peace treaty of signed, a period of war may differ slightly. 

The first thing you must do to get this exemption is to establish financial needs. You must be blind, paraplegic, or have lost more than two limbs. to qualify for this type of exemption. Your injuries must have been sustained during cursive military service. You must be the sole owner of the property, and you must live there full time to qualify for this exemption.

Constitutional Standards of Pennsylvania Property Tax

There are a few types of property that are exempt from taxes in the state of Pennsylvania Simply because of the nature of their use. Buildings that are used for religious worship are exempt from taxes. these properties must have regular religious services to qualify for the status. 

If a building is used strictly for charitable purposes, it is also exempt from taxes. If only a portion of your property is used for charitable purposes, that portion of the property will be exempt. Property that is used as a non-profit burial ground may also qualify for a tax exemption in the state.

What to Know if You have Inherited Property

What to Know if You have Inherited Property

If you have inherited property in the state of Pennsylvania, and you have no intention of living in it, you may try to decide whether to sell it or rent it out. You should know that there are not a lot of tax breaks for people who do not live in a property they own.

Taxes and fees are involved in buying or selling a property. You should be able to save those fees if you sell your home or buy a new one through a quick sale agent.

Owning property should be a benefit and not a burden. Knowing what tax breaks you are entitled to, the tax rate you should have, and the best way to buy and sell your property can make a home you own a fantastic place to live and a valuable asset.

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