For Philadelphia homeowners watching their property assessments and tax bills climb, some relief might be in sight. The City's Longtime Owner Occupants Program (LOOP) is offering a chance to 'lock in' your property tax bill if your home's 2025 assessment increased by 50% or more and you meet other criteria, according to a recent announcement. The program sets out to help eligible residents by capping assessments at the surge rate to stave off future financial strains.
To qualify for this tax reprieve, homeowners must have lived in their house for at least 10 years and possess an income that falls below program limits, which, for instance, caps a one-person household at $96,350. In addition, a property tax account must be current or in a compliant arrangement with the city. By applying for LOOP, citizens stand to benefit from a stabilized property tax bill despite the rises in market value, with their bills reflecting the frozen assessment value rather than the latest surge.
How exactly does LOOP provide savings? If your assessment jumped by exactly 50%, don't expect immediate savings. As explained in the city's briefing, "your bill will be based on that 50% increase and the current tax rate." However, the assessment will remain at that level to guard against future hikes. For those hit with a 75% increase or more, the program promises even more direct relief by freezing the bill at the higher level, ensuring that subsequent valuation increases won't eat further into homeowners' pockets.
When it comes to deciding between LOOP and the Homestead Exemption, homeowners must choose carefully, as the two cannot be used in tandem. The City encourages using tools available on their website such as the LOOP calculator and the Real Estate Tax Estimator to provide a detailed comparison to aid in informed decision-making. These resources allow homeowners to visualize their financial future under each program and choose the one that best suits their needs.
Interested in applying for LOOP? Homeowners should have their property's current and previous five-year assessments ready. These can be sourced from the city's website. The application process can be done online and must be completed by September 30 each year to take effect before the following year's taxes come due. For further questions or to seek clarification, the City's hotline is open at (215) 686-9200.
