Philadelphia released new property tax assessments on Wednesday for the first time since 2022. And with those assessments come brand new tax bills, due next year.
Property values increased citywide by more than 11% and lower income, majority neighborhoods of color continued to bear the brunt of that jump, according to an Inquirer data analysis.
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Philadelphia homeowners can expect to see their taxes increase by an average of more than $300, Mayor Cherelle L. Parker’s administration announced Monday.
This round of assessments came after months of inexplicable delay from Mayor Cherelle L. Parker’s administration. State law requires municipalities to complete new assessments by March, a deadline that Philadelphia blew. In contrast, the 2023 assessments, conducted in 2022, were released in early May.
Here’s what you need to know about the city’s newly released property assessments and your tax bill.
What is a property assessment?
Philadelphia values properties for taxation by attempting to estimate a home’s market value, or the amount the property would sell for on the market.
The city relies on the sales data of surrounding similar homes, along with looking at other characteristics of each property, to make those calculations.
How are properties assessed and valued?
The Office of Property Assessment uses a computer-assisted mass appraisal system to value the roughly 580,000 buildings and properties in the city. This is only the second year the CAMA system has been used.
The city’s tool takes into account features including building’s age, lot size, condition, the value of surrounding home sales, and other characteristics.
Philadelphia’s appraisals are designed to reflect the fair-market value, but lower-income neighborhoods and neighborhoods of color have been systematically and disproportionately impacted by assessments, despite reforms.
Montgomery Wilson, a senior attorney at Community Legal Services, said that although systemic inequities remain, the city is improving.
“It has to be said that the city has worked steadily in improving its accuracy and uniformity,” said Wilson, who worked on a study about the city’s 2023 assessments and is part of a task force convened by Parker to assess remaining property assessment biases.
While multi-year assessments — which can reflect more substantial real estate growth — contribute to sticker shock Philadelphians feel when receiving their new values and tax bills, the city has found itself in a cyclical situation.
Bewildered property owners question and appeal their hiked tax assessments, which, in turn, overwhelms the Office of Property Assessment and leads the city to push assessments an additional year.
Still, said Wilson, “It’s impressive that OPA can do [assessments] every other year.” Places such as Allegheny County, he noted in contrast, have not conducted new assessments in more than a decade, according to the county’s website.
Where can I see my new property assessment?
New property valuations can be found by searching a tool on the city’s website (property.phila.gov).
The city said it began mailing notices about new valuations and resulting tax bills Wednesday.
How do I calculate my tax bill?
Philadelphia’s real estate tax rate is 1.3998% of a property’s taxable value. The entire valuation of a property is not necessarily taxable due to certain exemptions, but more on that below.
You can tally up your bill by multiplying your new assessed value by the 1.3998%, or 0.013998. For example, if your home is valued at $250,000, you’d multiply it by 0.013998 to get $3,499.50 — your new tax bill.
When are the tax bills due?
The new, likely higher property valuations take effect on Jan. 1.
Property owners are expected to pay taxes based on this appraisal by March 31.
How do I appeal my assessment?
Owners who believe that their properties have been inaccurately valued can file a formal assessment appeal with the Board of Revision of Taxes or an informal appeal with the Office of Property Assessment.
The deadline for the appeals is Oct. 7. That leaves property owners just two months from Wednesday to appeal their new valuations.
“My No. 1 concern is that 60 days is not enough for the BRT deadline,” said Wilson, of Community Legal Services. “People need to recognize that they’re on a really tight deadline to file their appeals before Oct. 7.”
While informal appeals can’t be filed until after property owners receive official communication about their assessments, a formal appeal can be filed now.
To file an informal appeal with OPA, property owners can request and fill out a First Level Review form to explain why they feel their assessment is inaccurate. This process avoids a hearing, and OPA will inform filers whether or not the office will adjust the valuation.
The formal BRT appeal form is available online and can be submitted by email, in person or by mail, though Wilson recommended the first two methods of delivery. After completing and submitting that form, BRT will schedule a hearing.
Though the deadline is tight, Wilson said, people can file an appeal after the deadline by filling out another form, called a nunc pro tunc and also available online, explaining why the appeal is late.
What tax relief or exemptions can I apply for?
The city now offers four primary tax relief or exemption programs with the addition of the new low-income tax freeze initiative.
“Philadelphia has been absolutely proactive in trying to help homeowners who live in their homes keep their homes,” said Wilson. “I really think it is a model.”
If you find yourself house rich and cash poor, here’s what you can do:
Homestead exemption
The homestead exemption is a program for anyone who owns a primary residence in Philadelphia. It reduces a home’s valuation by $100,000. Residents can apply online at the Philadelphia Tax Center website, or call the Homestead Hotline at 215-686-9200.
Senior citizen tax freeze
Homeowners who are 65 and older, single, and making $33,500 or less, or married and making no more than $41,500 are eligible for this program, which can freeze the amount of property tax homeowners pay. It can be applied retroactively to 2018. That means a homeowner who was at least 65 years old in 2018 can apply to freeze the tax rates at that number. Applications are available online.
Longtime Owner Occupants Program
LOOP is a program eligible to Philadelphia homeowners who have owned and lived in their properties for at least 10 years, and whose assessments have increased by at least 50% over the last year, or 75% over the last five years. The program freezes tax bills at either 50% or 75% of assessed value, respectively. For example, if a $100,000 property’s value increased to $200,000 between 2024 and 2025, LOOP would freeze that valuation at $150,000.
Homeowners can learn more and apply online (go to phila.gov/documents and use the search tool.)
Low-income property tax freeze
Residents cannot yet apply to this new program, which mirrors the senior citizen tax freeze, but extends it to people who meet the income threshold regardless of age. The Revenue Department is expected to open applications for this program in the fall, according to an announcement from the city.
Eligible residents can also seek help with appeals and relief or exemption programs by calling the Philadelphia Legal Assistance Save Your Home Hotline at 215-334-4663, or reaching Community Legal Services directly at 215-981-3700.
