Inheriting a house can give you a sense of security and greater financial stability. But owning an inherited house also comes with responsibilities—and some you may not be aware of.
When you inherit a property, you inherit more than the house and land. You may also inherit unpaid property taxes, water and sewer charges, liens, and other debts tied to the property. Here are some things to check so you don’t get stuck with obligations you didn’t know about:
| What | Why | What to do |
|---|---|---|
| Real Estate Tax | Property taxes are due annually by March 31. Unpaid bills, including interest and penalties, are attached to the property—not an individual. If you inherit a property with delinquent taxes, those unpaid taxes remain attached to the property. The City can continue collection efforts against the property until the balance is paid, even if ownership changes. | Visit the Philadelphia Tax Center to check for and pay any outstanding Real Estate Tax. |
| Water and sewer charges | If you inherit a house with years of unpaid water bills, there may be liens on the property that you have to clear. | Visit phila.gov/waterbill to check for unpaid water bills. You may have to put the water account in your name to see account activity.
You can also check the City’s water lien webpage for information about liens on the property. |
| Other debts or liens | There may be other liens, judgments, and claims that may affect the property. | Consider doing a title search to find out—visit atlas.phila.gov. Also check for any other outstanding fees, including trash collection fees and L&I abatement invoices. |
Even if you are not yet listed on the deed, you may still be responsible for taxes and water charges attached to the property.
What other taxes apply?
Philadelphia’s Realty Transfer Tax generally does not apply to a transfer of property as a result of inheritance. There must be no mortgage or delinquent taxes on the property at the time of transfer.
The Commonwealth of Pennsylvania does collect an inheritance tax in many cases. Visit the Pennsylvania Department of Revenue’s website to learn more about the State’s inheritance tax and whether it applies to you.
What if the house is still in your relative’s name?
If you live in a house but cannot prove ownership because your name isn’t on the deed, you may have a tangled title. This can happen when you inherit a house from a relative who died without a will or before the probate process was completed.
The Register of Wills has information about resolving tangled titles. If you’re unsure what to do or need help clearing your home’s title, call (215) 686-6262. The City’s Tangled Title Program is another resource to help low-income Philadelphians resolve a tangled title.
You may still qualify for property tax help
The Department of Revenue offers several programs that can make property tax payments more affordable. For example, the Homestead Exemption reduces a home’s assessed value by $100,000, saving homeowners up to $1,399 a year.
Most property tax assistance programs require the deed to be in your name. However, some programs allow you to apply while you work on transferring the deed. For example, you may qualify for a conditional Homestead Exemption if your name is not yet on the deed.
Depending on your income, age, and other circumstances, you may qualify for programs such as:
- Longtime Owner Occupants Program (LOOP) — limits increases in your property assessment if you meet the program’s requirements.
- Senior Citizen Tax Freeze — freezes property bills for eligible seniors.
- Low-Income Tax Freeze — makes property tax bills more predictable for income-qualifying homeowners.
- Installment Plan — lets eligible homeowners pay their current-year taxes in monthly installments.
- Owner-Occupied Real Estate Tax Payment Agreement (OOPA) — helps homeowners pay past-due property taxes through affordable monthly payments. You may qualify even if your name is not yet on the deed, as long as you have a legal interest in the property.
Use our combined application to apply to all the programs (except OOPA). Find out how to apply for an OOPA in this blog post.
What about unpaid water bills?
If the house has past-due water bills, help may be available. The City provides assistance for eligible customers, including programs for income-qualifying households, seniors, and people experiencing a special hardship. If you don’t qualify for help and cannot pay the water bill in full, you can set up a payment agreement.
