How Much Are Property Taxes on a $350,000 Home in Philadelphia and Is There a Homestead Exemption You Can Apply For?

Philadelphia uses a single-step assessment system. Unlike many Pennsylvania counties that apply an assessment ratio to arrive at a taxable value, Philadelphia assesses properties at 100% of their estimated market value. That assessed value is then multiplied by the city's millage rate to produce your annual tax bill. You can verify your property's current assessed value at any time through the City of Philadelphia's Real Estate Tax page.

The Assessed Value vs. Market Value Distinction

In Philadelphia, the Office of Property Assessment (OPA) sets your home's assessed value. That figure is meant to reflect what your property would sell for on the open market, but it does not always match the price you paid or the current appraised value. Reassessments happen periodically, and the OPA's number can lag behind or diverge from actual sale prices, particularly in neighborhoods that have seen fast price movement over the past several years, such as Fishtown, East Passyunk, and parts of North Philadelphia. If you believe your assessed value is too high, you have the right to appeal to the Board of Revision of Taxes.

The Current Tax Rate

As of 2026, Philadelphia's combined real estate tax rate is 1.3998% of assessed value. This rate is a combination of the city portion and the school district portion, both of which appear on a single annual bill. The rate has held relatively steady in recent years, though the school district portion is subject to annual budget decisions by the School District of Philadelphia. Always confirm the current millage with the City's revenue department before finalizing any budget projections.

2. What Property Taxes on a $350,000 Home in Philadelphia Actually Look Like

The straightforward answer: if your home's assessed value equals its $350,000 purchase price, your annual property tax bill before any exemptions would be approximately $4,899. That works out to roughly $408 per month added to your housing costs, a number that matters when you are calculating what you can afford or comparing Philadelphia to the surrounding suburbs.

Running the Numbers

The formula is simple: assessed value multiplied by 0.013998 equals your annual tax. For a home assessed at $350,000, that is $350,000 x 0.013998, which equals $4,899.30. Keep in mind that the OPA's assessed value and your purchase price are two different things. If you buy a rowhouse in Rittenhouse Square for $350,000 but the OPA has it assessed at $310,000, your tax bill would be closer to $4,339. Conversely, if the OPA assessed it at $375,000, you would owe approximately $5,249. Checking the OPA database before you make an offer is a useful habit.

How This Compares to Surrounding Counties

Philadelphia's effective tax rate is notably higher than some of its suburban neighbors. Montgomery County municipalities often carry effective rates in the 1.0% to 1.5% range depending on the township and school district. Delaware County and Bucks County vary considerably by municipality. The difference matters most when you are comparing a $350,000 rowhouse in South Philadelphia to a $350,000 single-family home in a place like Abington or Lansdowne, where the school district millage can shift your annual bill by hundreds of dollars in either direction. That said, Philadelphia's wage tax, transit access, and walkability to places like Reading Terminal Market and the Schuylkill River Trail are part of the full cost-of-living picture that buyers weigh alongside the tax rate.

For a broader look at how these costs fit into the Philadelphia buying process, see Selling a Home in Philadelphia, Pennsylvania: Pricing, Timeline and What to Expect, which covers how taxes factor into net proceeds for sellers as well.

3. The Philadelphia Homestead Exemption: What It Is and How Much It Saves You

Yes, Philadelphia does have a homestead exemption, and it is one of the most practical tax relief tools available to owner-occupants in the city. The exemption reduces the assessed value of your home by a flat dollar amount before the tax rate is applied. As of 2026, that reduction is $100,000. That means if your home is assessed at $350,000, only $250,000 of that value is subject to tax once the exemption is applied.

What the Exemption Covers

The homestead exemption applies to the property you own and use as your primary residence. It does not apply to rental properties, investment properties, or second homes. The exemption covers both the city and school district portions of the real estate tax, so the savings apply to your entire bill, not just one component. You apply once, and the exemption renews automatically as long as you remain the owner-occupant. If you sell the property or convert it to a rental, the exemption ends.

How Much You Actually Save

On a $350,000 assessed value, the homestead exemption saves you approximately $1,399.80 per year. Here is the math: without the exemption, your tax is $350,000 x 0.013998, which equals $4,899.30. With the exemption, your taxable value drops to $250,000, and your tax becomes $250,000 x 0.013998, which equals $3,499.50. That is a savings of $1,399.80 annually, or about $116.65 per month. Over ten years of ownership, that adds up to nearly $14,000 in tax savings.

For more context on how the homestead exemption works at a national level and what variations exist across states, the National Association of Realtors homestead exemption overview is a helpful reference that puts Philadelphia's program in broader perspective.

4. How to Apply for the Philadelphia Homestead Exemption

Applying is straightforward, but you do need to take action. The exemption is not automatic when you buy a home. Many new Philadelphia homeowners miss out on hundreds of dollars in savings simply because they did not know they had to register. The process is managed by the Philadelphia Office of Property Assessment.

Eligibility Requirements

To qualify, you must meet three conditions. First, you must own the property. Second, the property must be your primary residence, meaning the address where you live and receive mail. Third, the property must be located within Philadelphia city limits. Condos, rowhouses, twins, and single-family detached homes all qualify as long as you occupy the unit as your primary home. If you own a multi-unit building and live in one of the units, only the portion of the assessed value attributable to your unit qualifies.

Step-by-Step Application Process

You can apply online, by mail, or in person at the OPA offices at 601 Walnut Street in Center City. The online application is the fastest route. You will need your property's Office of Property Assessment account number, which appears on your tax bill or can be found through the city's property search tool at phila.gov. You will also need to confirm your name matches the deed. The form itself takes under ten minutes to complete.

If you prefer to apply by mail, download the Homestead Exemption application from the OPA's section of phila.gov, complete it, and mail it to the Office of Property Assessment at 601 Walnut Street, Suite 300 West, Philadelphia, PA 19106. Keep a copy for your records.

Deadlines You Cannot Miss

The application deadline is typically September 13 of the tax year for which you want the exemption to apply. For the 2026 tax year, the deadline has already passed for most applicants, but filing now will lock in your exemption for the 2027 tax year. If you just purchased your home, file as soon as your deed is recorded. The OPA confirms your exemption status in writing, and you can also verify it through the city's online property search. Do not assume it transferred from the previous owner; it does not.

5. Other Philadelphia Property Tax Relief Programs Worth Knowing

The homestead exemption is the most broadly available program, but Philadelphia offers several additional relief options that can further reduce your tax burden depending on your situation. Each program has its own income limits, eligibility rules, and application deadlines, so it pays to review all of them when you first become a homeowner in the city.

Longtime Owner Occupants Program (LOOP)

LOOP is designed for homeowners whose property assessments have increased significantly. If your assessed value jumped by more than a certain percentage and you have owned and lived in the home for at least ten years, LOOP can cap the taxable value at a lower level, freezing the increase for as long as you remain eligible. This program has been particularly relevant in neighborhoods like Point Breeze, Brewerytown, and parts of Kensington, where assessed values climbed sharply following years of rising sale prices. Income limits apply, and you must reapply annually.

Senior Citizen Tax Freeze

Pennsylvania's Property Tax and Rent Rebate Program, administered at the state level, provides rebates to eligible residents age 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older. The rebate amount depends on income and the amount of property tax paid. Philadelphia homeowners who qualify can stack this state rebate on top of the city's homestead exemption, creating meaningful combined savings. Applications are filed with the Pennsylvania Department of Revenue, not with the city.

Payment Agreement Options

If you are facing a large tax bill, Philadelphia's Department of Revenue offers payment agreements that allow you to pay in installments rather than a lump sum. The Real Estate Tax installment plan lets eligible homeowners spread their annual bill across multiple payments throughout the year. There is also a low-income owner-occupant program called Owner-Occupied Payment Agreement (OOPA), which sets your monthly payment based on your income rather than your full tax liability. These programs are worth exploring if cash flow is a concern, particularly in the months following a home purchase when closing costs and moving expenses have already stretched your budget.

If you are still in the process of evaluating neighborhoods and want to understand how property tax differences across parts of the city affect your overall budget, the Fishtown Philadelphia Real Estate Market Guide and the Rittenhouse Square Philadelphia Real Estate Market Guide both include price range context that can help you model your tax exposure before you commit to a specific area.