Real Estate Tax | Services (2024)

Due date

March

31st

of each year.

Tax rate

1.3998%

of the assessed property value.

You can complete online payments, print payment vouchers, and look up your balance for this tax on the Philadelphia Tax Center. For help getting started, see our tax center guide.

Get an account or pay now

Who pays the tax

Anyone who owns a taxable property in Philadelphia is responsible for paying Real Estate Tax. Typically, the owner of a property must pay the real estate taxes. However, anyone who has an interest in a property, such as someone living in the property, should make sure the real estate taxes are being paid.

Important dates

Payments are due and payable on March 31. The Department of Revenue usually mails Real Estate Tax bills to property owners in December.

Tax rates, penalties, & fees

How much is it?

The City of Philadelphia and the School District of Philadelphia both impose a tax on all real estate in the City. For the 2022 tax year, the rates are:

0.6317% (City)+ 0.7681% (School District)= 1.3998% (total)

The amount of Real Estate Tax you owe is determined by the value of your property, as assessed by the Office of Property Assessment (OPA).If you disagree with your property assessment, you can file an appeal with the Board of Revision of Taxes (BRT). Appeals must be filed by the first Monday in October of the year prior to the tax year you are appealing. (For example, to dispute an increase to your property assessment that is set to take effect in the 2020 tax year, you would need to file an appeal by the first Monday in October 2019.)

What happens if you don't pay on time?

If you fail to pay your Real Estate Taxes by March 31, increased charges – which include interest – will be added to the principal amount of the tax. Collectively called “additions,” these charges accrue at the rate of 1.5% per month, beginning April 1 until January 1 of the following year.

If the taxes remain unpaid on January 1 of the following year:

  • A 15% maximum addition is added to the principal balance.
  • The taxes are registered delinquent.
  • Liens are filed in the amount of the total delinquency, including additions.
  • The City can begin the process of selling your home at a sheriff sale.

Discounts & exemptions

Are you eligible for a discount?

The due date to pay your Real Estate Tax is March 31.

The City of Philadelphia also offers a number of income-based assistance programs for owner-occupied households and senior citizens. These programs include:

  • Owner-occupied Real Estate Tax payment agreement (OOPA). Income-based program for homeowners with past-due Real Estate Taxes who might qualify for a monthly payment agreement.
  • Low-income senior citizen Real Estate Tax freeze. Income-based senior citizen program that “freezes” real estate taxes so that they don’t increase in the future.
  • Real Estate Tax installment plan. Qualified homeowners may pay current year property taxes in up to twelve monthly installments through December 31st.
  • Longtime Owner Occupants Program (LOOP). Income-based program for homeowners who experience a substantial increase in their property assessment.
  • Real Estate Tax deferral program. Income-based program for homeowners with Real Estate Tax increases of 15% or higher.
  • Tax credits for Active Duty Reserve and National Guard Members who serve outside of Pennsylvania.
  • City Council tax credits for homeowners with higher property tax bills.

Pennsylvania also offers an income-based program for seniors and adults with disabilities. For eligibility and application details, visit PA’s Property Tax/Rent Rebate Program page. You can also call the Commonwealth’s Philadelphia District Office at (215) 560-2056. You do not need a receipt for real estate taxes paid to the City to apply for the Commonwealth’s Property Tax Rebate.

Can you be excused from paying the tax?

The City offers a number of abatement and exemption programs for Real Estate Taxes. These programs include:

  • Homestead Exemption for all Philadelphia homeowners who complete an application. This program reduces the taxable portion of your property assessment by $80,000 in effect for 2023 Real Estate Tax bills and future years. The exemption for tax year 2020 through tax year 2022 was $45,000.
  • Property tax abatements for both residential and commercial projects. Abatements encourage new construction or the rehabilitation of properties by making them more affordable.
  • Non-profit tax exemptions for qualifying non-profit organizations.
  • Catastrophic loss adjustment for people whose property has been damaged by a fire or other natural disaster. To qualify as a catastrophic, the damage must result in a decrease of 50% or more in property value.

The Commonwealth of Pennsylvania also offers the Disabled Veterans Real Estate Tax Exemption, which permits a veteran’s home to be exempt from real estate tax if the veteran has a service-connected disability.

How to pay

Pay online

Pay online through thePhiladelphia Tax Centerby entering your physical address or Office of Property Assessment (OPA) number. You can check your tax balance and make payments through the“Search for a property”link on the Tax Center’s homepage, under the “Property” panel.

Pay by mail

Pay by mail with a check or money order. Be sure to attach a payment voucher to your bill and write the tax type and account number on your check. Payment vouchers can be printed from the Philadelphia Tax Center.

Mail payments with coupon to:

Philadelphia Dept. of Revenue
P.O. Box 8409
Philadelphia, PA 19101-8409

Pay by phone

Pay by phone by calling(833) 913-0795. If you experience any problems with the telephone system, call customer service at (800) 487-4567.

Pay in person

Pay in person with a check or money order at one of our three authorized payment centers. Visit the Department of Revenue website to check payment center locations and hours.

Tax code

60

Forms & instructions

Applications for Senior citizen Real Estate Tax freeze

Longtime Owner Occupants Program (LOOP) forms

Owner-occupied Real Estate Tax payment agreement (OOPA) forms

Related content

  • Flyers for taxpayer assistance programs
  • Real Estate Tax regulations
  • Prevent sequestration of your property due to unpaid debts
  • Request a Real Estate Tax refund
Real Estate Tax | Services (2024)

FAQs

How do I challenge my property tax assessment in NYC? ›

To appeal the assessed value and/or tax class of your property, or the denial or revocation of a not-for-profit exemption, you must file a completed "Application for Correction" appeal form and any other forms or information to the NYC Tax Commission in person or by mail by the deadlines.

How do I maximize my real estate tax deductions? ›

Strategies to Optimize Real Estate Tax Deductions
  1. Maximize Your Mortgage Interest. ...
  2. Keep Accurate Records of Expenses. ...
  3. Deduct Investment Property Expenses. ...
  4. Structure Your Ownership in the Right Entity. ...
  5. Keep Track of Depreciation on Properties. ...
  6. Offer Lease-to-Buy Programs. ...
  7. Plan When to Buy and Sell Properties.

What should a real estate professional do regarding property taxes? ›

Keeping clients informed: Real estate professionals should keep their clients informed about any changes or updates related to property taxes that may affect their properties. This includes changes in tax rates, assessment procedures, or any new legislation that may impact property tax obligations.

What questions should I ask a property accountant? ›

Best Types of Questions to Ask property accountants

What accounting software are you proficient in? What is your experience with lease accounting? How have you ensured accuracy in your financial records in the past? Can you explain a complex financial analysis project you worked on in the past?

How to lower property taxes in NY? ›

Property tax benefits
  1. Cooperative and Condominium Tax Abatement. ...
  2. Senior Citizen Homeowners' Exemption (SCHE) ...
  3. Senior Citizen Rent Increase Exemption (SCRIE) for landlords. ...
  4. Senior Citizen Rent Increase Exemption (SCRIE) for tenants. ...
  5. School Tax Relief (STAR) Program. ...
  6. Non-profit exemptions.

What is the formula for determining the market value of a property? ›

The GRM method determines the market value of a property by multiplying the gross rent multiplier (GRM) by the property's annual gross rental income. The formula to compute the GRM divides the sale price of a property by its annual gross rental income, which can be rearranged to isolate the price variable.

What is the most property tax you can deduct? ›

This effectively reduces the amount of income the federal government can tax and reduces the amount of tax they must pay. As of 2024, the maximum amount of property taxes you may deduct is capped at $10,000.

How can I reduce my taxable income with real estate? ›

Tax Benefits Of Real Estate Investing: Top 6 Breaks And Deductions
  1. Use Real Estate Tax Write-Offs. ...
  2. Depreciate Costs Over Time. ...
  3. Use A Pass-Through Deduction. ...
  4. Take Advantage Of Capital Gains. ...
  5. Defer Taxes With Incentive Programs. ...
  6. Be Self-Employed Without The FICA Tax.

How much real estate interest is tax deductible? ›

How much interest can I write off? You can deduct the interest you paid on the first $750,000 of your mortgage during the relevant tax year. For married couples filing separately, that limit is $375,000, according to the Internal Revenue Service.

What state has the highest property tax? ›

New Jersey

Higher-than-average home values play a part, but the Garden State also has the highest average effective property tax rate in the country. While New Jersey does not have an estate tax, some heirs (including siblings) will still pay death taxes when loved ones pass.

What is the 750 hour test for real estate professional? ›

750 hours of real estate-related activities

Beyond the expected day-to-day rental management activities, tasks included in this hours-based requirement include researching properties, analyzing markets, and attending real estate industry seminars.

Can real estate professionals deduct rental losses? ›

Benefits of real estate professional status

They can use rental losses to offset non-passive income. Another benefit of qualifying for real estate professional status is that any rental activities that aren't subject to PAL rules are also not subject to the 3.8% net investment income tax (NIIT).

How do you answer property manager interview questions? ›

Interview FAQs for Property Managers

A compelling answer should highlight your communication strategies, problem-solving abilities, and examples of maintaining professionalism under pressure, while ensuring adherence to property policies and legal guidelines.

What advice can an accountant provide? ›

Accountants can support you and your business and guide you to make the right financial decisions. An accountant can give you advice about: starting, buying, growing or ending a business. tax, including goods and services tax (GST) and business activity statements (BAS)

How do you answer an accountant interview question? ›

But since you are sitting for an accounting interview, you must craft an answer highlighting your professional accounting background. Mention your educational journey in finance, your experience (if any) working at an accounting firm, your milestones, and your strengths. Make a note of how you can answer this question.

What are two factors that impact the amount of a property tax bill? ›

Your property tax bill is based on the assessed value of your property, any exemptions for which you qualify, and a property tax rate. Factors such as your property's size, construction type, age, and location can affect your tax bill.

How is assessed value determined in New York? ›

Step 1: Market value is determined based on your tax class and an analysis of sales, income data, or the cost of reproducing the building. Step 2: Assessed value is calculated by multiplying the market value by the assessment percentage.

What is the main reason an owner may want to protest the assessment on his/her property? ›

Final answer: A property owner may contest the assessment of their property to avoid high property taxes, particularly if the assessed value is considered too high. This can be due to property taxes becoming a financial burden, disparities caused by reassessment rules, and fluctuations in property values.

How often are property taxes reassessed in NY? ›

In order for property to be assessed consistently at a uniform percent of current market value, a reassessment must be conducted each year.

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