Key relief programs include expanded Homestead Exemption, creation of Low-Income Property Tax Freeze program
PHILADELPHIA —The City of Philadelphia’s Office of Property Assessment (OPA) announced today that it has completed a revaluation of all properties in Philadelphia effective for Tax Year 2025. At the same time, Mayor Cherelle L. Parker along with City officials unveiled plans to expand outreach for key tax relief programs to mitigate the impact of revaluations on homeowners.
“The purpose of the revaluations, which are required by state law, is to make sure all properties are valued fairly, equitably and accurately,” saidMayor Cherelle L. Parker. “The Office of Property Assessment has done its job. Now, we are expanding tax relief programs for all Philadelphia homeowners, including for our city’s most vulnerable residents.”
Mayor Parker noted that because Philadelphia City Council and the Mayor’s Office this year increased the percentage of property tax revenues allocated to the School District of Philadelphia by one percent (from 55 percent to 56 percent), the School District will receive approximately $125 million more in revenues for schools over five years. In addition, the impact of the revaluation process will mean an additional $115 million in revenues will go to the School District, so that schools will receive approximately $240 million more over the next five years.
“We did revaluations of properties to make them fair and accurate,” Mayor Parker continued. “But the impact of this process on our schools, coupled with the actions taken by City Council and me this Spring, will unquestionably have a strong, positive impact on our schoolchildren. That matters to me as mayor.”
Key Dates
- OPA willmail Notices of Valuation beginning Wednesday, August 7, 2024, and updated values for individual properties will appear onproperty.phila.govat about the same time.
- New values take effect on Wednesday, January 1, 2025, and affect tax bills in 2025.
- Real Estate Tax is due Monday, March 31, 2025.
Internal and external studies demonstrate that the 2025 revaluation improved the equity, uniformity, and accuracy of property valuations citywide. OPA uses a Computer Assisted Mass Appraisal (CAMA) system to review more than 580,000 residential, commercial, industrial, and institutional properties in the city to ensure that assessed values more accurately reflect sales and market forces. This systematic review also reduces inequities among properties, meaning that similar properties have similar assessments.
“The updated assessments reflect our department mission,” saidJames Aros Jr., Chief Assessment Officer, Office of Property Assessment. “The Office of Property Assessment’s responsibility is to fairly, equitably, and accurately estimate the value of all properties in the city.”
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.
City Expands Protections for Homeowners to Mitigate the Impact of Valuations
Recognizing the impact tax increases can have on homeowners, the City offers a variety of programs that reduce tax bills for owner-occupied homes.
“Every person who owns and lives in their home is eligible for programs that reduces their tax bill and protects their home,” saidKathleen McColgan, Commissioner, Department of Revenue. “Keep in mind, if you are enrolled in a program, you never have to reapply unless your deed changes.” Commissioner McColgan outlined an array of outreach the City is conducting to notify homeowners about the relief programs, including door-to-door outreach, radio and TV ads, advertising on SEPTA buses, and other measures.
In addition to the existing relief programs, the City is launching a Low-Income Tax Freeze. Qualifying homeowners can “freeze” their property tax bills at the amount from the prior year. The Revenue Department is developing applications for this new program and will make them available this fall.
- Homestead Exemption.All homeowners are eligible for the Homestead Exemption. In 2025, the Homestead Exemption will reduce the assessed value of owner-occupied homes by $100,000 (previously $80,000). The increase was approved by City Council and signed into law by Mayor Parker. Most homeowners save $1,399 on their Real Estate Tax bills.Applications are due December 1, 2024. Learn more about theHomestead Exemption here.
- Real Estate Tax Installment Plan.All Senior Citizens and income-qualified homeowners may pay current-year property taxes in up to eleven monthly installments through December 15, instead of a lump sum payment on March 31.Applications are due on March 31, 2025. Learn more about theReal Estate Tax Installment Plan here.
- Senior Citizen Real Estate Tax Freeze.Income-based senior citizen program that “freezes” Real Estate Tax so that they don’t increase in the future, even if the tax rate or assessment increases.Applications are due September 30, 2025. Learn more aboutSenior Tax Freeze here.
- Longtime Owner Occupants Program (LOOP).Residents who have owned and lived in their property for at least ten years, experienced property assessment increases of at least 50 percent from one year to another, or at least 75 percent in a five-year period, and meet income requirements could cap their assessment and pay the same bill unless the tax rate changes.Applications are due September 30, 2025. Learn more aboutLOOP here.
- Owner-occupied Real Estate Tax payment agreement (OOPA).Provides affordable and manageable monthly payments for homeowners who struggle to pay past-due Real Estate Tax. Some homeowners can qualify for a zero-dollar-a-month payment agreement.Applications are accepted all year. Learn more aboutOOPA here.
- Tax Credit.ExcusingActive Duty Reserve and National Guard Membersfrom paying Real Estate Tax (the City tax portion) while they are called to active duty outside Pennsylvania. Learn more aboutTax Credit here.
Learn more about tax relief programs for property, lots and housing on theCity’s website here.
Property Owners Have the Right to Appeal Their Property Assessment
Property owners who believe their valuation is incorrect can request aFirst Level Review (FLR)with the OPA. An FLR form is included with all mailed Notice of Valuation letters from the OPA. Residents may also file a formal appeal with theBoard of Revision of Taxes(BRT). Formal appeals to the BRT and First Level Reviews are due by Monday, October 7, 2024. Details on both appeal options can be found atphila.gov/opa.
