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Here's How to Calculate Your Property Tax
For the first time in three years, Philadelphia released new property assessments and there was a significant increase. The pandemic delayed the assessments and we also saw home prices go up during that time. What does that mean for you as a homeowner? This new assessment will determine what your property tax will be in 2023.
How to Find Your New Property Assessment
Click here to find the page on the City of Philadelphia’s website. Type in your address in the search bar and press enter. Your’ll find your new assessed value as well as the assessments from the past several years going back to 2015. You will also see if you have any tax exemptions. Other things you’ll find on this page are your tax balance, the sales history, and property characteristics.
How to Calculate Your 2023 Property Tax Bill
To get an estimate of your 2023 property tax, you’ll just need a calculator. Multiply your new assessed value by Philly’s current real estate tax rate, which is 1.3998% (or 0.013998). If you have an exemption, subtract that from your assessed value before you do the multiplication.
Relief Programs to Lower Your Property Tax
The City of Philadelphia offers a Homestead Exemption program to reduce the taxable portion of your property’s assessed value. With this exemption, the assessed value of the property is reduced by $45,000. That saves homeowners about $629 per year on their tax bill. All Philadelphia homeowners are eligible for this exemption if it’s their primary residence and they currently live in that home. However, you are not eligible if you have a 10 year tax abatement. You can apply for the Homestead Exemption once your abatement expires. The deadline to apply is December 1 of each year. Philadelphia also offers the Longtime Owner Occupants Program or LOOP. This is a tax relief program for eligible homeowners who saw at least a 50% increase in their assessments. It works by limiting your home’s assessment increase to 50% and locking in that assessment for as long as your remain eligible. There is also the Low-income Senior Citizen Real Estate Tax Freeze. Applicants must meet both age and income requirements to be eligible. This program allows seniors to freeze their real estate taxes. Finally, there is the Owner-Occupied Payment Agreement (OOPA) program, which allows homeowners to make affordable monthly payments on property taxes that are past due.
How the Property Assessment Value is Determined
According to the Office of Property Assessment, they take several things into consideration when determining the value of the home. This includes:
Size and age of a property
A property’s location and condition
Recent sales of similar properties in the area, taking into account differences between properties sold and the property being assessed
For commercial and large multi-family properties, value is determined by analyzing recent sales, costs of operation, income generated, or the cost of land and construction.
The OPA gathers this information through various sources including:
Field inspections.
Aerial photography.
Data from other City departments, such as permits and deeds.
Commercial sources, like property listings and sales data.
How to Appeal Your Property Assessment
You will be receiving a notice in the mail about your new property assessment. With that, there will be a form to request an informal review. If you think the new value is incorrect, you can request a First Level Review (FLR). You can also file a formal appeal with the Board of Revision of Taxes by the first Monday in October.