Payments, assistance & taxes

Longtime Owner Occupants Program (LOOP)

The Longtime Owner Occupants Program (LOOP) is a Real Estate Tax relief program for eligible homeowners whose property assessments (after the Homestead Exemption) increased by 50%, or more, from last year. Participants must also fall within income limits, and meet length of home ownership requirements.

LOOP works by:

  1. Limiting your home’s assessment increase to 50%, and
  2. Locking in that assessment for as long as you remain eligible.

That means that if the assessment of your home increased by exactly 50% after the Homestead Exemption, you will not save money right away. Homeowners will see savings for each dollar increase above 50%. You could also save money in the future if the assessment goes up again, because your Real Estate Taxes will be based on the “locked-in” assessment.

In the future, your Real Estate Tax bill with LOOP may change if the Real Estate Tax rate changes.

Example: The assessed value of an eligible resident’s home was $80,000 in 2018 and increased to $185,000 in 2019.

2019 Assessment $185,000
2019 Homestead Exemption -$45,000
2019 Assessment after Homestead $140,000
2018 Assessment $80,000
Increase in 2019 after Homestead +75%
2019 Assessment limited at a 50% increase $120,000

 

2019 2019 with LOOP LOOP savings
Assessed Value $185,000 $120,000 $65,000
2019 Tax Rate 1.3998% 1.3998%
Tax Due $2,589.63 $1,679.76 $909.87

 

Eligibility

You must meet the following requirements to be eligible for LOOP:

  • You are a homeowner whose primary residence’s assessment increased by 50% from last year.
  • You have lived in your home for 10 years or more.
  • Your property taxes must be current, or you must be in an Owner Occupied Payment Agreement or installment plan.
  • Your income must fall below the limit set for your family size.
Family size Income cap
1 person $94,650
2 people $108,150
3 people $121,650
4 people $135,150
5 people $146,000
6 people $156,800
7 people $167,600
8 people $178,400

A trust can sometimes be eligible for LOOP. The Department of Revenue’s legal team reviews LOOP applications submitted by trusts, and may request additional information as part of the process.

If you meet these requirements, please fill out a LOOP application and mail it to:

Philadelphia Department of Revenue
PO Box 53250
Philadelphia, PA 19105

Once you qualify for LOOP you don’t have to reapply; it will be automatically applied to your Real Estate Tax bill each year.

You can add and remove family members to your deed if they die, move in, or move out, without affecting your LOOP status, as long as you still meet the income requirements.

Credit for new applicants

If you are a new applicant in 2019, you must pay your 2019 Real Estate Taxes in full without the LOOP discount (or enter into a payment or installment agreement) to be eligible. Your 2019 LOOP discount will be credited towards your 2020 bill. This credit is non-refundable, will be applied in 2020 only, and cannot be moved to a different property.

Example: If you paid $2,000 in Real Estate Taxes as part of your 2019 bill but your new amount due with LOOP was for $1,500, a $500 credit will be applied to your 2020 bill. Assuming no tax rate change, your 2020 tax bill will be $1,000 ($1,500 – $500).

Opting out of LOOP

You become ineligible for LOOP if you:

  • No longer live in the home, or
  • Your family’s income is above the income limit, or
  • Are delinquent on Real Estate Taxes that are not in a payment agreement.

If you no longer meet the eligibility requirements for LOOP you must alert the Department of Revenue within 45 days using the LOOP Removal Form, which must be printed, filled out, and mailed to the address on the form.

You cannot enroll in LOOP and the Homestead Exemption at the same time. You can calculate which would get you a bigger discount, and use whichever you prefer.

You can still apply for the Low Income Senior Tax Freeze program, installment plans, the Owner Occupied Payment Agreement, and any other local or state Real Estate Tax assistance programs, including rebates.

Paying Real Estate Taxes when you have LOOP and are in an Installment Agreement

Once you are approved for LOOP, you will receive new monthly coupons reflecting the discounted amount and how much you have already paid. Until then, you may either pay the monthly amount listed on your original coupon book or divide the LOOP discounted tax amount by 12 and pay that amount each month.

Program cap

The total LOOP savings available for 2020 is $30 million. If more than $30 million in savings is requested and approved, you may have your discount reduced and could owe more in Real Estate Taxes. Enrollment in LOOP does not close when the $30 million cap is met.


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