Philadelphia homeowners can now apply for new Low-Income Tax Freeze

Applications are now available for the Low-Income Tax Freeze, a new program aimed at helping Philadelphia homeowners handle rising property assessments, city officials said Thursday.

Participants who meet income requirements can freeze their real estate tax bills – negating the impact of valuation increases for the coming year and potential rate hikes in the future.

Mayor Cherelle Parker’s administration in August released results from the first citywide reassessment in two years. Overall residential values grew 19%, and tax payments for the average single-family home rose $330, according to the mayor’s office.

The Low-Income Tax Freeze was part of a budget package approved earlier by Parker and City Council to provide relief to homeowners ahead of the new valuations.

“No homeowner in Philadelphia should ever fear losing their home because they can’t pay their taxes,” Parker said in a statement Thursday. “The city offers useful programs to help keep tax bills affordable and protect residents.”

Residents, to qualify, must make no more than $33,500 a year for a single person or $41,500 for a couple. A state law authorizing the tax benefit requires limits to be aligned with eligibility for PACENET, a Pennsylvania prescription assistance program for seniors. The tax freeze has no age restrictions.

Advocates for the freeze, including Councilmember Jamie Gauthier, who sponsored the bill creating the program, have said it should help those who do not qualify for or receive enough assistance from existing initiatives, such as the Senior Citizen Real Estate Tax Freeze and the Long-term Owner Occupants Program (LOOP).

The Reinvestment Fund, in an analysis released when lawmakers were considering the legislation, estimated that about 62,000 households would be eligible for the Low-Income Tax Freeze.

Homeowners can apply online through the Philadelphia Tax Center at tax-services.phila.gov. Those interested can also download and mail-in an application or visit the Municipal Services Building, 1401 John F. Kennedy Blvd., or the Northeast Municipal Services Center, 7522 Castor Ave. Proof of income is required.

Residents with questions about the freeze or other tax relief programs can call the Department of Revenue at 215-686-6442.

The Parker administration opened up applications only days before the deadline to contest property assessments through the Board of Revision of Taxes. Monday, Oct. 7, is the appeal deadline.

Property owners who believe their valuation is incorrect can file a form available at phila.gov by searching “BRT.” Typically, appeals need to show that similar, nearby properties are assessed differently or that the city’s description of a property is incorrect.

Philadelphians can also request a First Level Review through the Office of Property Assessment until Nov. 18. Applications for that less-formal process are included in the valuation notices sent out to property owners. Anyone who has misplaced or not received the documents can call 215-686-9200.

As part of the budget deal, Parker and Council also agreed to a $20,000 increase for the Homestead Exemption, bringing the total benefit to $100,000.

The exemption, open to any owner-occupied home, effectively reduces the property’s taxable value, meaning that a resident whose house is valued at $200,000 would only have to pay taxes on $100,000. Participants in the freeze program can also sign up for the Homestead Exemption.

City officials have said the most recent boost to the exemption will save those enrolled an extra $280, for a total maximum deduction of up to $1,399.

Residents interested in signing up for the exemption can visit the virtual Philadelphia Tax Center or call 215-686-9200. The deadline to enroll for the 2025 tax year is Dec. 1. Any homeowner who has successfully enrolled in prior years does not need to reapply.

Property tax payments are due March 31 in Philadelphia.