The City of Philadelphia on Monday unveiled plans to expand outreach for key tax relief programs that may help mitigate the impact of new property tax revaluations on homeowners.
The city’s Office of Property Assessment (OPA) recently completed revaluations for Tax Year 2025 for all properties in Philadelphia and will mail out the valuation notices on Aug. 7. The revaluations are required by state law and ensure all properties are valued fairly, equitably, and accurately, according to Philadelphia Mayor Cherelle Parker.
“The Office of Property Assessment has done its job,” Parker said. “Now, we are expanding tax relief programs for all Philadelphia homeowners, including for our city’s most vulnerable residents.”
The Philadelphia City Council and the Mayor’s Office this year increased the percentage of property tax revenues allocated to the city’s school district by one percent, from 55 percent to 56 percent. The district will receive approximately $125 million more in revenues for schools over five years.
In addition, the impact of the revaluation process will mean an additional $115 million in revenues will go to the school district, so that schools will receive about $240 million more over the next five years, Parker explained.
“We did revaluations of properties to make them fair and accurate,” she added. “But the impact of this process on our schools, coupled with the actions taken by City Council and me this spring, will unquestionably have a strong, positive impact on our schoolchildren. That matters to me as mayor.”
As a result of the city-wide revaluation, single-family residential properties on average will see an increase in their property tax bill of roughly $330 for tax year 2025.
Recognizing the impact tax increases can have on homeowners, the city offers various programs that reduce tax bills for owner-occupied homes.
“Every person who owns and lives in their home is eligible for programs that reduce their tax bill and protect their home,” said Kathleen McColgan, commissioner at the Department of Revenue.
In addition to the existing relief programs, the city is launching a Low-Income Tax Freeze in which qualifying homeowners can “freeze” their property tax bills at the amount from the prior year. The Revenue Department is developing applications for this new program and will make them available this fall, said McColgan.