The new values of more than 580,000 residential, commercial, industrial, and institutional properties in Philadelphia are to take effect for Tax Year 2023, with property taxes due on March 31, 2023. Citywide reassessments scheduled for Tax Years 2021 and 2022 were postponed due to the operational issues posed by the implementation of CAMA (TY21) and the COVID-19 pandemic (TY22).
The new values are available online at property.phila.gov. Written notices of the new values are scheduled to be mailed out by September 1, 2022 at the latest.
Reflecting the strong real estate market in Philadelphia, the citywide reassessment found that the aggregate value of all properties in Philadelphia has risen by approximately 21 percent since Tax Year 2020.
Factoring in projected appeal and collection losses, this will result in additional property tax revenues to the General Fund of $92 million in Fiscal Year 23 and $460 million for the City’s general fund over the course of the FY23-27 Five Year Plan.
To reduce the potential impact these rising values may have on residents, Mayor Kenney has proposed a package of relief measures and reductions in the Wage Tax. These measures will ensure that the revenues resulting from new assessments are put directly back into the hands of taxpayers.
“Growing property values reflect well on Philadelphia being a place of choice and represent an opportunity to build wealth for some. But homeowners deserve protections, which is why I am proposing $200 million in new homeowner and rent relief over five years.” – Mayor Jim Kenney
Real Estate Tax relief programs for homeowners
Tax relief programs are available for homeowners!
From the Homestead Exemption to LOOP to the Senior Citizen Real Estate Tax Freeze and more, these programs are managed by the Department of Revenue. The City offers many Real Estate Tax relief programs for homeowners.
Expanding tax relief and wage tax reductions
Mayor Kenney proposed that the Homestead Exemption, which reduces the taxable portion of a primary residential property’s assessed value, be increased to $65,000 from the current $45,000. Homeowners currently in the homestead program will automatically see this change and do not need to re-apply. With this change, most homeowners will save more than $900 on their Real Estate Tax bill.
The Real Estate Tax Estimator widget is also now live on property.phila.gov. The Real Estate Tax Estimator widget helps taxpayers estimate their future tax bill with the Mayor’s proposed increase to the Homestead Exemption. To use it, just type in your address and the feature will give users a chance to choose between: $0, $45,000, or a $65,000 Homestead value.
Longtime Owner Occupants Program (LOOP)
The Mayor also proposed a 20 percent increase to funds set aside for the LOOP program. LOOP is an income-based program for homeowners who have lived in their home for ten years or more and experience a significant increase in their property assessment. Under the plan, the total amount of funds available for disbursement among qualified homeowners in a single fiscal year would increase to $30 million from the current $25 million.
Additional relief efforts
The Mayor proposed allocating $40 million over five years to enhance implementation of all relief programs, increase outreach to homeowners about the programs, and to work with City Council on using a portion of those funds for improved rent relief and to improve participation in the Senior Citizen Tax Freeze program.
Wage Tax reductions
Of the $460 million in anticipated additional property tax revenues over five years, Mayor Kenney proposes that $260 million be used to offset substantial reductions in the Wage Tax. Under the plan, the residential rate would be reduced over the next two years to 3.7 percent (from the current 3.8398 percent), and the non-resident rate would be reduced to 3.44 percent (from the current 3.4481 percent). These would be the lowest wage tax rates in Philadelphia since 1976.
If you believe your valuation is incorrect
Written notices of the new values are scheduled to be mailed out by September 1, 2022 at the latest.
Property owners who believe their valuation is incorrect can request a First Level Review (FLR) with the OPA. FLR forms will be included with the Notice of Valuation that is to be mailed to property owners later this year. Residents who are not satisfied with the outcome of the First Level Review, or decide to skip the FLR process altogether, may file a formal appeal with the Board of Revision of Taxes (BRT). Formal appeals are due to the BRT by the first Monday in October. Details on both appeals options can be found here.