The city’s revaluation for Tax Year 2025 is complete, meaning property values and property taxes are on the rise.
And although some increases may appear to put a strain on the wallet, Mayor Cherelle Parker along with city officials unveiled plans to expand outreach for key tax relief programs to mitigate the impact of revaluations on homeowners.
Seeing the biggest benefit will be the city’s school district, which was awarded an extra 1 percent of property tax revenues, as voted by City Council. The rate increased from 55 to 56 percent and will bring about $125 million more though the school district’s doors over the next five years. With the new property assessments in line, the district will receive an additional $115 million in revenues over that five-year span.
The City of Philadelphia’s Office of Property Assessment has already started mailing notices of updated values for individual properties, and those adjustments can also be found on phila.gov. New values will take effect on Jan. 1, 2025 and will affect tax bills in 2025.
Real Estate Tax is due Monday, March 31, 2025.
According to the city, studies demonstrate that the 2025 revaluation improved the equity, uniformity and accuracy of property valuations citywide. OPA uses a Computer Assisted Mass Appraisal 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.
On average, single-family residential properties will see an increase in their property tax bill of about $330 for tax year 2025. But the city is highlighting ways that qualified residents can offset some of the costs.
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.
Existing programs include the Homestead Exemption, Real Estate Tax Installment Plan, Senior Citizen Real Estate Tax Freeze, Long Time Owner Occupants Program and the Owner-occupied Real Estate Tax payment agreement.
All homeowners are eligible for the Homestead Exemption, which reduces the amount of taxable land on a property. In 2025, the Homestead Exemption will reduce the assessed value of owner-occupied homes by $100,000 (previously $80,000). Most homeowners save about $1,400 on their real estate tax bills each year. Applications are due Dec. 1 and only need to be applied for once.
With the Real Estate Tax Installment Plan, all senior citizens and income-qualified homeowners can spread their bills out by paying current-year property taxes in up to 11 monthly installments through Dec. 15, instead of a lump sum payment on March 31. Applications are due on March 31.
The Senior Citizen Real Estate Tax Freeze “freezes” Real Estate Tax so that senior citizens’ rates don’t increase in the future, even if the tax rate or assessment increases. Applications are due Sept. 30, 2025.
The Longtime Owner Occupants Program allows residents who have owned and lived in their property for at least 10 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 to cap their assessment and pay the same bill unless the tax rate changes. Applications are due Sept. 30, 2025.
The Owner-occupied Real Estate Tax payment agreement provides affordable and manageable monthly payments. Some homeowners can qualify for a zero-dollar-a-month payment agreement. Applications are accepted all year.
Other tax credits excuse active duty Reserve and National Guard members from paying Real Estate Tax (the city tax portion) while they are called to active duty outside Pennsylvania.
Property owners also have the right to appeal their assessments by requesting a First Level Review with the OPA. Residents may also file a formal appeal with the Board of Revision of Taxes. Both appeals are due by Oct. 7. Details on both appeal options can be found at phila.gov/opa. ••
