Philadelphia property owners could see higher real estate tax bills next year now that the city is resuming property reassessments. Some property owners, however, could benefit from new property tax relief from Philadelphia. The two new measures include an increased homestead exemption and freeze of property tax bills for some low-income owners.
New property tax relief from Philadelphia
Even though Philadelphia’s latest budget includes no new tax rate increases, many property owners could witness a spike in their real estate tax bills. This is because the property reassessments, which were on hold in the final year of Mayor Jim Kenney’s administration, are starting again.
Now, the property reassessments will take into account two years of growth, resulting in a notable hike in property taxes for areas with strong real estate markets. Homeowners, however, can make use of the new property tax relief from Philadelphia to reduce their property tax bills.
Lawmakers have increased the homestead exemption from $80,000 to $100,000. If your home is assessed at $250,000 this year, it will be taxed as if it is valued at $150,000.
Also, homeowners with property valued below $100,000 will owe no taxes, while those with property valued more than $100,000 will save even $280 more. The savings are in addition to the $1,000 that homeowners already save with the existing $80,000 exemption.
There are no income requirements to get the exemption; rather, anyone who owns a home and lives in it qualifies for the homestead exemption. Homeowners who owe back taxes or mortgage payments can also apply for the exemption.
Homeowners can either apply online, through the mail, or by calling (215) 686-9200. Visit this link to get more information on the homestead exemption. Those who already receive the homestead exemption don’t need to reapply to benefit from the increased exemption.
The last date to apply for the homestead exemption is December 1 each year. The exemption is estimated to cost the city about $21 million this year.
Tax free for low-income homeowners
Another new property tax relief from Philadelphia is for low-income homeowners. Low-income seniors are already allowed to freeze their tax bills resulting from an increase in their assessments or a spike in the tax rate.
Now, under the new legislation approved last week, about 60,000 low-income homeowners will also be able to freeze their tax bills. The new legislation is the result of legislation that the Pennsylvania General Assembly approved this year to allow municipalities to come up with their own property tax freezes for low-income homeowners.
Individual homeowners making less than $33,500 annually (less than $41,500 for married couples) qualify for the freeze. The income thresholds are based on the state law. The tax freeze program is estimated to cost the city about $2 million annually.
Seniors can apply for the tax freeze either online or by mailing the completed form to the concerned authority. Visit this link to know more about the application process. Application details for residents who qualify for the freeze under the legislation will soon be available.
