New homeowners pay property taxes through escrow or directly to the county, and the bill can change after a sale. Know your rate, your exemption options, and your appeal rights.
How Property Taxes Work for You
Property taxes are the annual taxes your local government charges based on the assessed value of your home, and they fund schools and local services. In Pennsylvania, counties assess properties and apply a millage rate to set the bill. The tax bill typically arrives once or twice a year, or is collected monthly through your mortgage escrow.
If your lender escrows, your monthly payment already includes one-twelfth of the tax bill, and the lender pays the county when it is due. If you own the home free and clear, you pay the county directly.
Expect a Change After You Buy
Your tax bill can change after you buy, and often it rises. Counties may reassess a property after a sale, updating the assessed value toward the new purchase price. That reassessment can push the bill well above what the previous owner paid.
Check the assessment shortly after closing and compare it to your purchase price. If the assessment seems out of line with comparable homes, you may have grounds to challenge it, and there is a window to do so.
Exemptions That Lower Your Bill
Pennsylvania offers property tax relief programs that can reduce your bill, and many are easy to miss. The Homestead Exemption in Philadelphia excludes a portion of the assessed value from taxation for owner-occupied homes. In Philadelphia, there is also a Senior Freeze program for qualifying older homeowners, and several counties offer discounts and rebates for seniors and low-income residents.
These programs require an application, and some have deadlines, so apply as soon as you are eligible rather than waiting for the tax bill to remind you.
Your Right to Appeal
If you believe your assessment is too high, you have the right to appeal it. Start by comparing your assessment to recent sales of comparable homes. If yours looks inflated, gather your evidence and file an appeal with the county's assessment board within the deadline.
The process is free or low cost in most counties and often does not require an attorney. A successful appeal can lower your bill, and it stays lower until the next reassessment.
Smarty's Advice Expert Insight
John Smart (Smarty) · Smarty Home Solutions / eXp Realty Agent, AI Certified Agent
Your Next Step for Managing Property Taxes
Review your assessment soon after closing, apply for any exemption you qualify for, and appeal if your assessment outruns the comparables. Property taxes are the one home cost you can often reduce with a little paperwork.
John Smart, AI-Certified Agent with eXp Realty helps Philadelphia-area buyers understand taxes before they buy. Call 215-598-6848 or schedule a free consultation.
Related reading: Appealing your assessment | Homestead Exemption