Philadelphia’s Homestead Exemption knocks $100,000 off your home’s assessed value before the city figures your Real Estate Tax. For most owners that’s up to $1,399 back in their pocket every year. If you own the home and it’s your primary residence, you qualify, no income or age test, and you apply one time with the Department of Revenue by December 1.
Here’s the part that bugs us. The city keeps running reminder campaigns about Homestead for a reason: plenty of owners never signed up. Nobody told them. The deed recorded, the tax bill showed up in December, and they just paid it. If that’s you, it’s a quick fix.
What Is the Philadelphia Homestead Exemption?
It’s a reduction in the taxable part of your assessment. Not a rebate check, not a credit you claim on a return. The Office of Property Assessment sets your home’s value, Revenue subtracts $100,000 if you have Homestead, and the tax rate of 1.3998% gets applied to whatever’s left.
The quick math
Say your Philadelphia rowhome is assessed at $300,000. Without Homestead, the bill runs about $4,199. With it, the city only taxes $200,000, and the bill drops to roughly $2,800.
That $1,399.80 gap is basically the same for anyone whose home is assessed at $100,000 or more. Put it next to the other recurring costs on our Philadelphia cost of living breakdown and it’s real money.
Buying in Philly? Put Homestead on Your Closing Checklist
We’ll remind you to file once you move in. Want help budgeting the real monthly cost of a home, taxes included? Give us a call.
Who Qualifies for Homestead in Philadelphia?
Two boxes to check:
- You own a home in Philadelphia.
- You live in it as your primary residence.
That’s it. A mortgage doesn’t disqualify you, and according to the Revenue Department, neither does being behind on your property taxes. Rentals and second homes don’t count, though. Homestead follows the place you actually live.
The two big exceptions
Homes with an active 10-year residential tax abatement can’t claim Homestead until the abatement runs out. Same story for anyone enrolled in LOOP, the Longtime Owner Occupants Program. If you’re eyeing newer construction, read our take on new construction misconceptions and ask how much abatement time is left before you write an offer.
Name not on the deed?
This happens a lot after a parent passes and the house never gets retitled. The city offers a conditional “Tangled Title” Homestead if you file a paper application, a signed affidavit and two proofs of address. SaveYourHomePhilly can help sort out the title itself at (215) 334-4663. Our guide to handling an inherited house in Philadelphia covers the bigger picture.
How Do You Apply for the Homestead Exemption?
Online is fastest, and you don’t need a username or password. On the Philadelphia Tax Center:
- Click “Search for a property” and enter your address.
- Select your OPA account number.
- Choose “Apply for real estate assistance programs” and follow the prompts.
Prefer the phone? Call the Homestead Hotline at (215) 686-9200. You can also mail a paper application to the Department of Revenue, P.O. Box 52817, Philadelphia, PA 19115. The city’s official Homestead Exemption page has the form.
When is the Homestead deadline?
December 1, every year. File by October 1 if you want the approval reflected on your next bill. Miss that and get approved later, and Revenue adjusts things after the fact, either with a second bill or a credit you can request back.
Closing in December?
You’re not out of luck. The city says buyers whose settlement date falls between December 2 and 31 can still apply. Ask your title company for the settlement sheet so you have the date handy, and keep it with your closing cost paperwork.
Not Sure What Your Taxes Will Look Like?
We’ll walk you through assessments, escrow and Philadelphia transfer tax before you buy, so the first bill isn’t a surprise. With Us It’s Always A Win!
Do You Have to Reapply Every Year?
Nope. One approval carries forward for as long as you own and live in the home. If the exemption amount goes up, you get the bigger number automatically.
The catch is the deed. Refinance with a new deed, add a spouse, take someone off, and the city treats it as a change that needs a fresh application. This one trips people up after a refi. Pull up your address on the city’s property search after any deed change, and if it says “No exemption,” file again. If your lender rolls taxes into your payment, the savings eventually show up in your escrow account too.
What Other Philadelphia Property Tax Relief Can You Get?
Homestead is the only program open to every owner-occupant. The rest are income-based, and you can apply for all of them on one combined form:
- Homestead Exemption
- Longtime Owner Occupants Program (LOOP)
- Senior Citizen Tax Freeze
- Low-Income Tax Freeze
- Real Estate Tax Installment Plan
Behind on taxes already? Ask Revenue about an Owner-Occupied Payment Agreement, which spreads the balance into monthly payments with no down payment. Older homeowners should look at the senior freeze first, and our post on repair help for senior homeowners is worth a read too. Leron also holds the Seniors Real Estate Specialist designation if you’re weighing a move.
Timing matters right now. OPA mailed 2027 valuation notices this summer, and while the tax rate is staying at 1.3998% for 2027, a higher assessment still means a higher bill. Homestead is the easiest lever you’ve got.
Outside the city line?
Everything above is Philadelphia only. Places like Bala Cynwyd and the rest of the Main Line run on their own county and school district rules, so ask us before you assume anything carries over.
Philadelphia Homestead Exemption FAQ
How much does the Philadelphia Homestead Exemption save?
It takes $100,000 off your home’s assessed value, so most owners save up to $1,399 a year at the current 1.3998% tax rate. A home assessed under $100,000 saves less, because taxable value can’t drop below zero.
What is the deadline to apply for Homestead in Philadelphia?
The final deadline is December 1 of each year. Apply by October 1 if you want the approval to show up on your next Real Estate Tax bill.
Do I have to reapply for the Homestead Exemption every year?
No. Once you’re approved, it carries forward as long as you own the home and live there. A deed change, like some refinances or adding or removing a co-owner, means you’ll need to apply again.
Can I get Homestead if my house has a 10-year tax abatement?
Not while the abatement is active. The city lets you apply once it expires. Homeowners enrolled in LOOP can’t hold Homestead at the same time either.
Can I apply for Homestead right after I close on a Philadelphia home?
Yes, as soon as you own it and live in it. The city even accepts applications from buyers whose settlement date lands between December 2 and December 31.
Thinking About Buying or Selling in Philadelphia?
Leron Grossman and the Victory team know the tax side of Philly real estate as well as the neighborhoods. Call the main office or send us a note.