Philadelphia’s Homestead Exemption helps homeowners save money on their property taxes. The program is open to homeowners of all ages and income levels. But owning a home in the city doesn’t automatically mean that you qualify. Certain tax benefits, ownership arrangements, and property uses can affect eligibility. Here are a few examples of why a home may not qualify for the Homestead Exemption:

Your property is receiving a tax abatement

You cannot get an abatement and Homestead on the same property at the same time. A 10-year abatement is the most common. But the law also applies to other abatements, like the Disabled Veterans Tax Exemption.

If you’re receiving a 10-year tax abatement for a new construction or improved construction, you can only receive Homestead after the abatement expired. You don’t have to wait weeks or months. Apply immediately after the abatement has expired.

Be sure to apply within the last year of your abatement to avoid going an entire year without discounts.

Want to get out of an abatement agreement sooner? Fill out and submit this Request to Cancel an Abatement form to the Office of Property Assessment (OPA).

Your property has LOOP

Similarly, you can’t get Homestead and Longtime Owner Occupants Program (LOOP) benefits at the same time. Estimate your bill with both programs to see what you could save before deciding whether to apply for LOOP or Homestead. You can do this using the Real Estate Tax Estimator on property.phila.gov. The LOOP application also includes a calculator that shows what your savings would look like with both programs. Only you can decide which program is right for you.

A trust owns the property

Although trusts may qualify for some City-offered property tax assistance programs, they don’t automatically qualify for Homestead.

State law requires that the property owner must be a “natural person” to qualify. Because a trust is a legal entity that holds property for another, it’s not eligible.

Commercial properties and other legal entities, like corporations and limited liability companies, don’t qualify for the same reason.

The property isn’t your primary residence

Homestead is intended for the home you own and live in as your primary residence. A second home, rental property, or property you own but live elsewhere does not qualify. You can receive the exemption on only one property—the property you live in. This can also be affected by co-owners listed on each deed. Co-owners can claim only one primary residence, even if each owner lives in a separate property.

Keep these in mind:

  • If you use part of your house as your business and part as your primary residence, only the part you use as your primary residence qualifies.
  • Having a co-owner doesn’t stop you from getting the exemption. But neither you nor your co-owner can have Homestead benefits on another property or in another jurisdiction at the same time.

Save BIG with Homestead

In 2027, the Homestead Exemption will reduce the taxable portion of a property’s assessed value by $100,000. Most homeowners can save up to $1,399 a year on their Real Estate Tax bill.

Use the Real Estate Tax Estimator on property.phila.gov to check if you already have the exemption. Enter your address (street number and name) and select “Search”. Apply on tax-services.phila.gov if you don’t have it.

If you have questions about your property’s eligibility, call the (215) 686-9200 hotline.

Learn more about the Homestead Exemption program and apply today.