Another round of property tax reassessments means more anxiety for Philadelphia homeowners who have seen what they owe on their homes skyrocket in recent years.
For some low-income residents, a program that can help is now accepting applications.
The Low-Income Tax Freeze is now open for residents to apply. They must meet the annual income limits of $33,500 for a single person or $41,500 for a couple.
Eligible homeowners can apply online through the Philadelphia Tax Center, in person at a neighborhood municipal services center, or through the mail.
The legislation passed unanimously through City Council this spring and the mayor signed it into law along with other pro-housing bills.
“The Low-Income Tax Freeze program is one more tool in the toolbox to help Philadelphians lower their tax bills,” said Mayor Cherelle Parker in a release. “No homeowner in Philadelphia should ever fear losing their home because they can’t pay their taxes. The City offers useful programs to help keep tax bills affordable and protect residents.”
Residents who have not qualified for other tax relief programs like LOOP or the Homestead Exemption are encouraged to apply for the Tax Freeze.
Research mentioned during the legislative process estimated that 62,000 homes are eligible for this benefit based on income and do not have anyone living in the house under 65.
Monty Wilson, a senior attorney at Community Legal Services, believes that this year’s assessment is more accurate than previous ones.
Citywide, property values rose 19%, while in Kingsessing the jump is 50%. One of Wilson’s clients saw a house previously valued at $95,000 leap to over $500,000 based on activity and opportunity for new development in the area.
“It boils down to ‘what do we do about gentrification?’ — and that has always been a hole in the boat in the Philadelphia property tax assessment,” Wilson said. “This program is specifically designed to kind of help some the poorest of the poor to freeze their assessment at the current year’s level, so they don’t go into sticker shock when the new assessments come out.”
While City Council did not meet Thursday in observance of Rosh Hashanah, they have been hard at work in preparing residents for the coming property tax adjustments. Council President Kenyatta Johnson has hosted six property tax relief workshops with district members across the city since September.
“The Low-Income Tax Freeze program is a significant component of our mission to provide equitable tax relief to our most vulnerable residents, while ensuring everyone pays their fair share,” said Kathleen McColgan, Commissioner of the Department of Revenue in a release. “Eligible homeowners enrolled in this program will see significant savings and be protected from increasing property valuations in rapidly changing neighborhoods.”
The application is a one-page document residents can either print or fill out online. Have proof of ownership, proof of residence and proof of income ready when completing the application. Wilson recommends bringing the finished document to a city-operated location to confirm receipt, at least for this year. The deadline to file is Jan. 31, 2025.
