Philadelphia real estate taxes for 2025 are calculated at 1.3998% of your property’s assessed value, split between city (0.6159%) and school district (0.7839%) rates. Homeowners can reduce their tax bill by up to $1,399 annually through the Homestead Exemption, which exempts $100,000 from their property’s taxable value. Taxes are due March 31 each year.
Property owners in Philadelphia face one of the most substantial tax obligations in Pennsylvania. Understanding how these taxes work can save you thousands of dollars annually while helping you avoid penalties and late fees.
How Philadelphia Real Estate Taxes Work
The City of Philadelphia and the School District of Philadelphia impose separate taxes on all real estate within city limits. For 2025, the combined rate stands at 1.3998%—with 0.6159% allocated to the city and 0.7839% to the school district. Your annual bill equals your property’s assessed value multiplied by this rate.
The Office of Property Assessment determines property values based on market conditions, recent sales of similar homes, and property characteristics. In 2024, property values increased citywide by more than 11%, leading to higher tax bills for many homeowners.
Example calculation: A home assessed at $200,000 generates an annual tax bill of $2,800 ($200,000 × 0.013998). However, exemptions and relief programs can substantially reduce this amount.
The $1,399 Homestead Exemption Every Owner Should Claim
Starting in 2025, the Homestead Exemption reduces a property’s assessed value by $100,000, saving most homeowners about $1,399 annually. This represents a significant increase from the previous $80,000 exemption that saved $1,119 per year.
Every Philadelphia homeowner who lives in their property qualifies for this exemption—regardless of income, age, or mortgage status. You apply once, and the benefit continues automatically unless you sell the property or change the deed.
Application process:
- Apply online through the Philadelphia Tax Center (no account required)
- Call the Homestead Hotline at (215) 686-9200
- Mail a paper application to the Department of Revenue
The deadline to apply is December 1 annually, but earlier applications ensure the exemption appears on your next tax bill.
Key benefit: If your home’s assessed value is $100,000 or less, you won’t owe any Philadelphia real estate taxes after applying the exemption.
Payment Deadlines and Methods
Philadelphia real estate taxes are due March 31 each year. The city mails bills each December. If you have a mortgage, your lender likely includes taxes in your monthly payment—meaning you won’t receive a direct bill.
Payment options include:
- Online through the Philadelphia Tax Center (fastest method)
- Phone payment at (833) 913-0795
- In-person at municipal services centers
- Mail to Philadelphia Department of Revenue, P.O. Box 52817, Philadelphia, PA 19115
For homeowners without mortgages, paying the full amount by March 31 is critical to avoid penalties.
Penalties for Late Payment
Past-due bills accrue monthly interest and penalties at 1.5% per month beginning April 1. These additions can reach a maximum of 15% of the principal balance by January 1 of the following year.
If taxes remain unpaid on January 1, they’re registered as delinquent, liens are filed, and the city can begin selling your home at a sheriff sale.
Timeline of consequences:
- April 1: Interest begins accruing at 1.5% monthly
- December 31: Maximum 15% penalty applied
- January 1: Taxes registered as delinquent, liens filed
- After January 1, Sheriff sale proceedings can begin
Relief Programs Beyond Homestead
Philadelphia offers several income-based programs for homeowners struggling with taxes.
Senior Citizen Tax Freeze: If you’re 65 or older, this program freezes your tax bill at its current rate—even if assessments or rates increase. Applications can be applied retroactively to 2018, meaning homeowners who were at least 65 in 2018 can freeze rates at that level. The deadline is September 30 annually.
Low-Income Real Estate Tax Freeze: This newer program extends tax freeze benefits to income-qualified homeowners regardless of age. Applications are due January 31, 2025.
Longtime Owner Occupants Program (LOOP): Homeowners who’ve owned and lived in their property for at least 10 years, and whose assessments increased by at least 50% in one year or 75% over five years, can cap their assessment. The program freezes valuations at either 50% or 75% of the increase. Applications are due September 30.
Owner-Occupied Payment Agreement (OOPA): This program helps homeowners with past-due taxes by establishing manageable monthly payments. Some homeowners qualify for zero-dollar monthly agreements. Applications are accepted year-round.
Property Assessment Appeals
If you believe your property’s assessed value is too high, you can appeal. Appeals must be filed by the first Monday in October of the year before the tax year you’re appealing.
For example, to dispute your 2025 assessment, you needed to file by early October 2024. The appeal goes to the Board of Revision of Taxes, which evaluates whether your property’s value is accurate based on comparable sales and market conditions.
Property owners can also request a First Level Review with the Office of Property Assessment by November 18 for informal resolution before formal appeals.
Transfer Tax: What Sellers Pay
Philadelphia real estate taxes include two distinct categories: annual property taxes and transfer taxes paid when selling.
Effective July 1, 2025, the realty transfer tax rate increased to 3.578% for the city, plus Pennsylvania’s 1% rate, totaling 4.578%. This represents a 0.3% increase from previous rates.
Transfer taxes apply to both residential and commercial sales, with limited exemptions for transfers to spouses, children, or grandchildren. The new revenue funds Mayor Parker’s Housing Opportunities Made Easy (HOME) initiatives aimed at increasing affordable housing stock.
Example: Selling a $300,000 home generates $13,734 in transfer taxes ($300,000 × 0.04578), typically split between buyer and seller unless negotiated otherwise.
Why Philadelphia Real Estate Taxes Matter
Property tax revenue funds essential city services: public schools, police and fire departments, parks and recreation, street maintenance, sanitation, and libraries. The city projects $925 million in property tax revenues for fiscal year 2025—a 12% increase over fiscal 2024.
Recent trends show residential taxpayers bearing a larger share of the tax burden. The percentage of all property tax obligations falling on residential taxpayers increased from 71% to 75%, while nonresidential properties dropped from 29% to 25%. This shift reflects stagnant commercial property values following increased remote work.
Practical Steps to Reduce Your Tax Bill
- Apply for Homestead immediately: This single action saves $1,399 annually for most homeowners with minimal effort.
- Check eligibility for freeze programs: If you’re 65+, low-income, or a longtime owner with significant assessment increases, these programs can lock in lower rates.
- Review your assessment: Compare your property’s assessed value to similar homes in your neighborhood using the property search tool at property.phila.gov.
- Set payment reminders: Missing the March 31 deadline triggers automatic penalties that compound quickly.
- Consider OOPA if struggling: Don’t wait until December 31 to address past-due balances. The Owner-Occupied Payment Agreement provides manageable monthly options.
Frequently Asked Questions
What is the Philadelphia real estate tax rate for 2025?
The combined rate is 1.3998%—0.6159% for the city and 0.7839% for the school district.
When are Philadelphia property taxes due?
All property taxes are due March 31 annually, with bills mailed each December.
How much does the Homestead Exemption save?
Starting in 2025, it saves approximately $1,399 per year by exempting $100,000 from your assessed value.
Can I pay Philadelphia real estate taxes monthly?
Yes. Senior citizens and income-qualified homeowners can use the installment plan. Others can arrange an OOPA payment agreement.
What happens if I don’t pay by March 31?
You’ll face 1.5% monthly interest charges, up to 15% maximum penalty by year’s end, and potential liens or foreclosure.
