🧾 Philadelphia Property Taxes Explained: What Homeowners Need to Know
By Megan Harkins | Living Beach 2 Burbs
🌐 www.livingbeach2burbs.com | 📧 [email protected] | 📞 215-935-4113
Confused About Property Taxes in Philadelphia? You’re Not Alone.
If you're buying, selling, or already own a home in Philly, it’s essential to understand how Philadelphia property taxes work—and how they impact your bottom line.
While Pennsylvania has relatively moderate property taxes overall, Philadelphia’s system has its own quirks. In this guide, I’ll break down how property taxes are calculated, what to expect as a homeowner, and how to potentially reduce your tax bill.
🏠 How Property Taxes Work in Philadelphia
Your annual property tax in Philadelphia is based on:
1. The Assessed Value of Your Property
Philadelphia uses the Actual Value Initiative (AVI) to assess your home’s market value. This is the city's estimate of what your home would sell for today—not what you paid for it.
2. The Tax Rate
As of 2025, the property tax rate in Philadelphia is 1.3998% of your property’s assessed value.
💡 Example:
If your home is assessed at $300,000, your annual property tax would be:
$300,000 × 1.3998% = $4,199.40
📊 How Often Are Assessments Updated?
The Office of Property Assessment (OPA) updates property values periodically, usually every 1–2 years. Major changes or renovations to your home (like additions or upgrades) can trigger a reassessment.
Important: If you believe your assessment is too high, you can appeal—but you’ll need strong evidence (like a recent appraisal or comparable home sales).
💸 Transfer Tax When Buying or Selling
In Philadelphia, there’s also a Realty Transfer Tax of 4.278% (as of 2025), typically split between the buyer and seller unless negotiated otherwise.
Buyer pays ~2.139%
Seller pays ~2.139%
This tax is due at closing and can add several thousand dollars to your closing costs—so plan ahead!
🧾 Tax Relief & Exemptions for Homeowners
Philadelphia offers a few helpful programs to reduce your property tax burden:
🔹 Homestead Exemption
Reduces your home’s assessed value by $80,000 for tax purposes.
Eligibility:
Must be your primary residence
Simple, one-time application
💡 This could save you over $1,100/year on your tax bill!
🔹 Senior Citizen Tax Freeze
If you're 65+ and meet income guidelines, you may lock in your property tax rate—even if your home value increases.
🔹 LOOP (Longtime Owner Occupants Program)
Designed for longtime Philly residents facing rising assessments due to neighborhood growth. Helps cap increases for eligible homeowners.
👩💼 Megan’s Local Insight
"A lot of buyers are surprised by the transfer tax and reassessment process after they move in. I always make sure my clients understand the full picture—no surprises, just smart planning."
— Megan Harkins, Realtor® | Living Beach 2 Burbs
📌 Tips for Managing Property Taxes in Philadelphia
Apply for the Homestead Exemption ASAP
Check your OPA assessment regularly
Appeal if your valuation seems unfair
Factor in the transfer tax when buying or selling
Work with a local agent who knows the system
🏡 Need Help Navigating Philly Taxes?
Whether you're buying, selling, or just trying to make sense of your tax bill, I’m here to help. As a local expert, I guide my clients through every financial detail of the process—including tax planning, exemptions, and closing costs.
📞 Call or text me at 215-935-4113
📧 Email: [email protected]
🌐 Visit: www.livingbeach2burbs.com
Let’s make real estate (and taxes) simple.
