How Are Philadelphia Property Taxes Calculated and Assessed?

Philadelphia property taxes are calculated on your assessed value times the combined city and school rate, about 1.4 percent for 2025-26, with a $100,000 homestead exemption for owner-occupied homes. The city sets an assessed value for each property, and the combined tax rate converts that assessment into the annual bill.

For most owner-occupants, the Homestead Exemption reduces the assessed value subject to tax by a fixed amount, lowering the bill each year. Understanding the formula makes your tax bill transparent rather than mysterious.

The exemption changes the math in a meaningful way: the exemption amount is subtracted from the assessed value before the rate is applied, so its value in dollars each year equals the exemption times the rate. That is why owners watch exemption changes closely when the exemption or the rate is adjusted.

Buyers comparing Philadelphia to the surrounding counties should also know the rate bases differ: suburban municipalities assess and tax under county schedules with their own millage math, which is a big reason identical houses a mile apart can carry very different annual tax bills.

The Office of Property Assessment sets each property's assessed value, aiming to reflect what the home would sell for under a standard set of rules. The city periodically performs reassessments to keep values current, and assessments are expressed as a percentage of market value. A home's assessed value and its tax bill are directly linked.

After you buy, your assessment can be updated toward the purchase price, which is why new owners sometimes see their bill rise in the year after closing. Checking the assessment after purchase is a wise step.

Municipalities outside Philadelphia follow their own county schedules, which is why a buyer comparing taxes across the six counties sees such different numbers for similar homes: the assessment ratio, the tax rate base, and the exemption availability all differ by municipality.

The Homestead Exemption excludes a portion of your assessed value from taxation for owner-occupied primary residences. The exemption amount is adjusted periodically and reduces the taxable value for the owner who lives in the home, lowering the annual bill by a set amount each year.

You must apply for the Homestead Exemption; it does not always follow the property automatically. If you are an owner-occupant and have not applied, check your tax bill and file the application, since it is one of the simplest ways to reduce a recurring cost.

Because the exemption applies to the home you actually live in, new owners must file after moving in, and the application is tied to the property's status as your primary residence. If you buy, claim it; if you rent, the owner claims it; and if you move, the exemption follows your new primary home after a new application.

There is a deadline and a review cycle every year, so set a reminder to confirm the exemption is still attached to your record rather than assuming the city carried it forward from the prior owner.

If you believe your assessment is too high, you can appeal it through the city's Board of Revision of Taxes. Compare your assessment to recent sales of comparable homes, and if it is out of line, gather your evidence and file within the appeal window. A successful appeal lowers your assessed value and your tax bill.

The appeal process is accessible to owners without an attorney in most cases, and the evidence of comparable sales is what wins. Deadlines matter, so check the current appeal period before you begin.

Start the appeal with a list of three to five comparable sales from your immediate area that closed recently at prices below your assessed value, and include photos if condition supports your case. The board decides on the evidence, so a tidy, well-documented packet is half the battle.