How Philadelphia’s Property Tax Freeze Affects Low-Income Residents

A up-to-date program passed by the City Council in June will allow eligible Philadelphia homeowners to freeze their property tax bills at a lower amount.

The property tax freeze for low-income earners is expected to be designed similarly to the tax freeze for seniors, but the IRS is still working out how to implement the program. Applications are not yet available.

Councilmember Jamie Gauthier introduced a bill to create the program, which was bolstered by matching state legislation passed by Democratic state Rep. Jared Solomon of Northeast Philly.

Gauthier said the bill was introduced last session by then-Councilwoman Cherelle Parker on behalf of Councilman Darrell L. Clarke.

Gauthier represents the Philadelphia City Council’s 3rd District, where residents of predominantly Black neighborhoods including Parkside and Kingsessing will see some of the highest property tax increases in the city.

After a months-long delay, the city released up-to-date property valuations Wednesday. The up-to-date valuations are available online search tool on city website (real estate.phila.gov) and the city said it began sending out notifications about up-to-date assessments and up-to-date tax bills on Wednesday.

“The last round of property assessments really galvanized us,” Gauthier said. Her office has been flooded with calls from constituents who are scared, frustrated and enraged about the steep tax increases.

“[Philadelphia has] We’ve always prided ourselves on the fact that homeownership rates are high, even among middle- and low-income people,” Gauthier said. “We want to make sure we stay who we are.”

The IRS is still working out the rules for a property tax freeze for low-income earners, but here’s what we know about the program so far.

How does the tax freeze work?

Under the program, the amount of property tax payable is set at the 2024 level and does not change even if the value of the home increases after the 2025 valuation.

If the valuation goes down, the bill will go down as well.

Eligible Philadelphia homeowners must apply for and be approved for the program before they can benefit from the tax freeze.

The tax freeze will not be retroactive, Gauthier said, but will keep property taxes at 2024 levels for registered homeowners.

Who qualifies for a tax freeze?

The program is open to single homeowners in Philadelphia whose annual income does not exceed $33,500, and married couples whose annual income does not exceed $41,500.

This threshold was set based on the highest income allowed under Pennsylvania’s PACENET Pharmaceutical Assistance Program.

There is no minimum income requirement.

How to apply?

The revenue department aims to make applications available by September, according to department spokesman Christian Crespo. The deadline to apply is Jan. 31, 2025, Crespo said. Homeowners who are accepted into the program will see the relief on their 2025 tax bill, which is due March 31.

Gauthier spokesman Harrison Feinman said residents will be required to provide proof of income.

Examples of proof of income pursuant to a senior tax freeze application include, but are not limited to:

Once your application is ready, it will be available for download, printing and mailing to the Department of Revenue or you can complete it online at Philadelphia Tax Center Website (tax-services.phila.gov).

Can the up-to-date program be combined with other existing reliefs or exemptions?

The low-income property tax freeze, similar to the senior tax freeze, can be combined with a property tax exemption that lowers property values ​​by $100,000 for registered homeowners in Philadelphia.

“In fact, if we get an application from a homeowner who qualifies for the programs but doesn’t have the Homestead Exemption, we will automatically add the Homestead Exemption to their account,” said Crespo, a department spokesman, adding that the tax freeze provides a greater benefit than the program for long-time owner-occupiers.

A property freeze can also be combined with an Owner Occupied Property Payment Agreement, which offers monthly payment plans to Philadelphia homeowners who have delinquent property tax bills.