Philadelphia homeowners might be leaving money on the table if they haven't yet applied for the city's Homestead Exemption, a program designed to reduce the burden of real estate taxes. According to the City of Philadelphia's recent announcement, the Homestead Exemption now stands at a significant $100,000 reduction off a home's assessed value, potentially saving up to $1,399 on property taxes.
To alleviate the financial strain on residents, the exemption has incrementally increased over the past few years, signaling the city's commitment to affordability and homeownership longevity. The Homestead Exemption, which became effective for fiscal year 2025, has seen its cap rise from $45,000 in 2020 to $80,000 in 2023 and reached $100,000 for the current year. This change means that you could effectively owe zero in property taxes if your home is valued at or below $100,000.
The program is open to all homeowners within the city, with no restrictions on how long they have lived in their property or their income level. The City of Philadelphia's announcement explains, "Homestead is available to ALL Philadelphia homeowners. It doesn’t matter if you’ve lived in your home for years or just bought it. You qualify if you’re an owner-occupant homeowner." Qualification persists if the owner occupies the home and does not alter the deed through actions such as refinancing or adding a co-owner.
Applying is straightforward and requires just a single submission. Once approved, the homeowner is enrolled perpetually, until they sell the home or the deed changes hands. To access these savings, homeowners can apply online, by phone by calling the Homestead Hotline at (215) 686-9200, or through a mail-in application. It should be noted, however, that homes benefiting from a 10-year tax abatement will not qualify for Homestead.
