The idea of paying taxes on something you own, such as real estate, may seem pointless. Still, without Philadelphia real estate taxes, many neighborhood programs will not have funding, including schools, libraries, and other public services. The amount of real tax owed goes off the property value. It’s essential to know there are exemptions involving property taxes in Philadelphia for low-income or elderly homeowners.
Who Pays Philadelphia Real Estate Tax?
Homeowners throughout Philadelphia are responsible for paying city tax and Philadelphia school district tax, which is due yearly by March 31st. The property owner pays tax on each property regardless of whether it’s owner-occupied or a rental home. Property taxes help improve community life by providing affordable housing, good schools, and hospitals, fixing roads and bridges around the city, and funding other public services.
What Is The Real Estate Tax in Philadelphia?
The amount of property taxes in Philadelphia is a set rate depending on the property’s current assessed value. The tax rate in Philadelphia for 2023 is 1.3998%; Philly’s tax rate is 0.6317% (city tax) + 0.7681% (school district tax), which is the total amount due for the year. The taxes owed depend on the homeowner’s income; Philadelphia provides many programs for low-income residents.
The property taxes are due by March 31st, and the homeowner will have late interest added to the amount owed of 1.5% monthly. If taxes go unpaid for an entire year, the city of Philadelphia can add a maximum amount of 15% interest, followed by taking homeownership and selling the property in sheriff’s sale.
How To Pay Property Taxes?
Real estate tax in Philly is due every year by the end of March. There are four different options to submit payment for property taxes. The four other options will be to pay online, pay by mail, pay taxes by phone, or in person.
- Pay property tax in Philadelphia online by entering the home address on the Philadelphia Tax Center website. Homeowners can also pay yearly taxes online through the Office of Property Assessment.
- Pay taxes by mail to the “Philadelphia Department of Revenue” at the Municipal Service Building in Center City at 1401 John F. Kennedy Blvd.
- Pay by phone: The payment method is simple: call 877-309-3710. This payment requires a debit or credit card.
- Pay your real estate taxes in person at one of three authorized payment centers. The city recommends making an appointment to pay taxes in person. Only two of the three locations reopened since COVID-19; Center City and Northeast Philadelphia locations North Philadelphia payment building remain closed.
Exemptions For Real Estate Taxes
Tax exemptions are essential for individuals who work to make ends meet. Real estate tax breaks assist low-income and elderly homeowners while also helping boost the local economy. Philadelphia offers a variety of tax discounts and exemptions with only two requirements: owner-occupied income-based or for seniors.
Philly Tax Exemptions
- Philadelphia has two tax payment programs, which consist of monthly payments. The first is the owner-occupied real estate tax agreement, and the other is the straightforward installment plans. Being able to pay a bill over time helps people save money and apply a little of their weekly paychecks towards that expense.
- Low-income senior tax freeze. These low-income seniors can’t work and earn money; they are on a fixed income and may have little to no money coming in. Keeping seniors at a locked-in standard rate will make paying their bills easier. Any community must take care of our elderly; limiting the taxes owed by our seniors is an excellent way to help these individuals.
- Longtime owner occupants program: Property values in Philadelphia continue to increase. The longtime owner program allows for a tax break for low-income owners who experienced a massive increase in property assessment.
- The Deferral program is for tax increases of 15% or higher.
- Philadelphia also offers tax credits for active duty reserve or national guards who serve outside of Pennsylvania.
Philadelphia Tax Abatement Programs
- Homestead Exemption: All Philadelphia homeowners who apply are eligible for this tax break. It lowers the taxable part of the property assessment by 80k for 2023 and beyond. Through the tax period of 2020 and 2022, the amount to decrease from the property assessment was only 45k.
- Philadelphia offers tax breaks for new and fixed-up houses if the units are affordable and accept government housing help.
- Property loss adjustments: This tax break is for homeowners whose home was damaged by fire or other natural disasters. The damage must decrease at least fifty percent of the property value to get this tax break.
- Pennsylvania offers tax cuts to people injured in the war.
Property Tax Philadelphia: Helps The Community
The real estate tax was started to help pay for public services. The downside to property taxes is that the amount is set based on the home’s value when the individual’s pay rate may vary from house to house. Anyone can find a home value on the city’s website and figure out the amount of yearly taxes by taking 1.3998% from the total assessed amount. A homeowner can disagree with the home’s estimated value and try to agree with the city of Philadelphia. There is no promise that the city will lower taxes, but different tax breaks exist.
Property tax may seem like a problem, but without these funds, there will be no public education, housing assistance, and other public programs. Homeowners should always stay on top of paying their taxes, and if there are any issues, reach out to your local government to see how they can help you. If the taxes become too much, consider selling your house to a reputable home investor in Philadelphia, Pennsylvania.