Increased Property Taxes: What Are Your Options?

post by Christina Briglia

We know that many Philadelphians are concerned with the most recent 2018/2019 reassessment of property values. A great majority of properties have significantly increased in value, and homeowners are feeling the burden of higher real estate taxes.

You may have received mail from the City with your new assessment. You’re also able to check out your home’s new assessed value here – http://property.phila.gov.

To determine your new annual tax payment, please take the Market Value for 2019 and multiply it by the assessment rate of 0.01379. If you do the same for 2018’s Market Value, you’ll be able to understand the extent of any increase you received. If you have any Exemptions, be sure to subtract these from the Market Value before doing your calculations.

Example:

Year Market Value Taxable Land Taxable Improvement Exempt Land Exempt Improvement
2019 $153,700 $23,977 $99,723 $0 $30,000
2018 $136,400 $21,278 $85,122 $0 $30,000

FORMULA

(Market Value – Exemptions)*0.01379 = Annual Taxes

2019

$153,700  – $30,000 = $123,700

$123,700 * 0.01379 = $1705.82/year OR $142.15/month

2018

$136,400 – $30,000 = $106,400

$106,400 * 0.01379 = $1,467.26/year OR $122.27/month

 *This sample homeowner had a tax increase of $238.56/year OR $19.88/month.

One way to alleviate some of the costs is to apply for the Homestead Exemption. This applies to owner-occupied properties only and will decrease your taxable home value by $30,000. Sorry investors, you are not qualified for this one. Visit http://www.phila.gov/OPA/AbatementsExemptions/Pages/Homestead.aspx to learn more about this process.

If you find the new assessed value of your home to be completely out of whack, you are able to appeal. Learn more about the appeal process here: http://www.phila.gov/brt/PDF/2019%20Appeal%20Form.pdf. Please keep in mind that there have been certain scenarios where a resident has appealed and their home’s value was increased even further! You want to be sure before you appeal that your assessed value is truly out of line for the area. You can do this by consulting with a trusted real estate professional and/or accountant.

In the unfortunate event that your new tax increase is putting you in a position of financial hardship and you’ve exhausted all of the above solutions, please reach out to discuss the sale or rental of your home. We will be sensitive to your unique needs and situation and will do our best to find a solution that will offer a more comfortable lifestyle.

If you’d like to discuss this or any other real estate related topics, please give me a call.

Christina Briglia, Realtor ®
Coldwell Banker Preferred
267.231.5484 | phc.christina@gmail.com