The Pennsylvania homestead exemption lowers the taxable value of a home you own and live in as your primary residence, so you pay less in property tax. There are two separate programs. The statewide homestead exclusion reduces school property taxes, and you apply through your county assessment office by March 1. Philadelphia’s own Homestead Exemption reduces the City Real Estate Tax, with a final deadline of December 1 and an October 1 date if you want the savings on your tax bill.
Key takeaways
- Only a primary residence qualifies, under both the statewide program and the Philadelphia program.
- The statewide school-tax exclusion runs on a March 1 deadline. Philadelphia’s runs on December 1.
- Philadelphia takes $100,000 off your assessed value. Statewide amounts vary by school district.
- Selling or refinancing? The deed-change note below explains when to reapply.
What is the Pennsylvania homestead exclusion?
The statewide program comes from the Taxpayer Relief Act, which is Act 1 of Special Session 1 of 2006, signed June 27, 2006. Under that law, the Commonwealth sends property tax reduction money to each school district. Homeowners receive that relief through a “homestead or farmstead exclusion”.
People often call it the “PA homestead exemption.” The state’s own term is “exclusion,” and it applies to school property taxes.
How the statewide exclusion works
With the exclusion, each homestead’s assessed value is reduced by the same amount before the property tax is calculated. Your school district then figures your school tax on that lower number.
The size of the reduction depends on your school district. Relief also isn’t guaranteed. Homeowners receive an exclusion only when funds are available, either from a voter-approved income tax or from enough state allocations.
Who qualifies for the statewide exclusion
Most owner-occupied homes and farms are generally eligible, but only a primary residence qualifies. A homestead is a dwelling used mainly as the domicile of an owner who is a natural person. According to the state:
- Condo and co-op units can qualify when the owner lives there as their domicile.
- A dwelling used only partly as a home gets a pro rata share of the exclusion.
Statewide deadline and how to apply
You get the application from your county assessment office. To receive school tax relief for a tax year that begins July 1 or January 1, you must file by the preceding March 1.
School districts must notify homeowners by December 31 if a property isn’t approved or if its approval is about to expire. If you get that notice, act on it before the next March 1.
Forms and procedures differ from county to county. If you’re buying in Bucks, Delaware, Montgomery, or another county, contact that county’s assessment office for its current application. Suburban buyers who are also comparing New Jersey may find our guide to choosing between NJ and the PA suburbs as a first-time homeowner helpful.
Philadelphia Homestead Exemption
Philadelphia’s Homestead Exemption is the City’s own program for the City Real Estate Tax, separate from the statewide Act 1 exclusion, and Philadelphia owners apply through phila.gov. If you own your Philadelphia home and live in it as your primary residence, you are eligible.
How much the Philadelphia exemption saves
The exemption reduces your property’s assessed value by $100,000. The City says that starting in 2025, most homeowners save up to $1,399 a year. The benefit was smaller in earlier years.
Who qualifies in Philadelphia
The City says you are still eligible if you have a mortgage, if you are a new homeowner, or if you are behind on your taxes. Two situations need extra attention:
- 10-year tax abatement. Properties with a 10-year residential abatement are not eligible. You can apply after the abatement expires, or you can remove it with the City’s cancellation form. Once you remove an abatement, you cannot get it back, so compare both options before you file.
- Tangled titles. If your name isn’t on the deed, for example because you inherited the home from a relative who died, a conditional exemption may be available. You file a paper application marked “Tangled Title” and include a signed Homestead Affidavit plus two forms of ID or proof of address.
Philadelphia deadlines
- October 1: Apply by this date to see the benefit on your Real Estate Tax bill.
- December 1: This is the final deadline each year. If you’re approved after October 1, the City sends a second, adjusted bill.
How to apply in Philadelphia
The City accepts applications three ways:
- Online through the Philadelphia Tax Center. You don’t need a username.
- By phone at the Homestead Hotline, (215) 686-9200.
- By mail to City of Philadelphia Department of Revenue, P.O. Box 52817, Philadelphia, PA 19115.
If City records still show the previous owner, call or file a paper application. You can check your status with the estimator on the Property Search website.
Still deciding whether to buy in the city? Our guide on moving to Philadelphia covers the bigger picture.
Statewide exclusion vs. Philadelphia exemption at a glance
| Program | Who runs it | What it reduces | Deadline | How to apply |
|---|---|---|---|---|
| Statewide homestead exclusion (Act 1) | Each school district, using “property tax reduction allocations” the Commonwealth distributes (DCED) | Assessed value for school property tax; amount varies by district | March 1 before the tax year | Application from your county assessment office |
| Philadelphia Homestead Exemption | City of Philadelphia Department of Revenue | $100,000 off assessed value for the City Real Estate Tax | October 1 for your bill; December 1 final | Online, phone, or mail |
After-closing checklist for new PA homeowners
Closing day brings a lot of paperwork. Our breakdown of closing costs in PA covers the full budget. Once you have the keys, take these steps:
- Confirm the home is your primary residence. Both programs require it.
- Outside Philadelphia: Get the homestead application from your county assessment office and file it before the next March 1.
- In Philadelphia: Apply through the Philadelphia Tax Center, the Homestead Hotline, or by mail. Aim for October 1.
- Check for a 10-year abatement on a Philadelphia home before you apply, because the two can’t be combined.
- Keep your mail from the school district. A December 31 notice means your approval was denied or is about to expire.
- Check your status using the City’s Property Search estimator.
Sellers and refinancers: a deed change means reapplying in Philadelphia
Once Philadelphia approves your exemption, you never need to reapply unless your deed changes. The City gives refinancing a mortgage and adding or removing a co-owner as examples. If you refinance or change who is on title, plan to file again.
If you are buying, file your own application after closing. The City says new homeowners are eligible, and if City records still list the previous owner you should call or file a paper application. If the City later changes the exemption amount, current approved owners do not need to reapply.
If you’re buying or selling soon, a Houwzer agent can remind you about these deadlines around closing.
This article is general education and isn’t tax or legal advice. For questions about a specific property, contact your county assessment office, or the Philadelphia Department of Revenue for homes in the city. Pennsylvania also runs a separate Property Tax/Rent Rebate program for some older, disabled, and lower-income residents. Check with the state about its rules.
Frequently asked questions
Can I get the homestead exemption if I have a mortgage?
Yes in Philadelphia. The City says you’re still eligible with a mortgage. The statewide exclusion depends on whether the home is your primary residence, so ask your county assessment office about your situation.
Do I have to reapply every year?
In Philadelphia, no. You reapply only if your deed changes. For the statewide exclusion, your school district must tell you by December 31 if your approval is about to expire.
I bought a Philadelphia home and missed October 1. Can I still apply?
Yes. The final deadline is December 1. If you’re approved after October 1, the City sends you a second, adjusted bill.
Can I combine the Philadelphia exemption with a 10-year tax abatement?
No. Properties with a 10-year residential abatement aren’t eligible. You can wait for the abatement to expire or cancel it, but once you cancel it you can’t put it back.
How much will the statewide homestead exclusion save me?
It depends on your school district, and the state doesn’t publish one statewide figure. Every homestead in a district gets the same reduction in assessed value, and that reduction depends on available funding. Your county assessment office or school district can give you the current amount.
