A Guide to the PA Homestead Property Tax Assessment Exclusion
The Commonwealth of Pennsylvania approved the Taxpayer Relief Act (Act 1 of Special Session 1) in 2006. The Act helps homeowners pay their property taxes by offering homestead and farmstead exclusions in each school district.
If you’d like to lower your property tax bill in Pennsylvania, consider applying for the PA homestead property tax assessment exclusion. DoNotPay will provide a detailed guide to getting property tax relief in PA in a matter of minutes.
What Is Property Tax, and How Is It Calculated?
Paying property taxes on a yearly basis is an obligation of every homeowner. Not everyone pays the same amount for property taxes. The price depends on multiple factors, such as:
- The state’s property tax rate
- The assessed value of your property
- Property tax exemption eligibility
Property Tax Rate
Each American state has different tax rates that usually range between 0.18% and 1.89%. The table below shows the top five states with the highest and lowest property taxes:
|States With the Lowest Property Tax Rates||States With the Highest Property Tax Rates|
|District of Columbia—0.46%||Wisconsin—1.76%|
Pennsylvania’s property tax rate is 1.50%, which is pricey compared to the nation’s average rate of 1.07%.
Every jurisdiction employs an assessor—a person whose job is to perform property assessment to calculate property taxes. The assessor will determine your property taxes by multiplying the value of your home by the state’s property tax rate.
Property Tax Exemptions
Most states offer property tax exemptions to seniors, veterans, widow(er)s, and disabled citizens. Since the property tax rate in Pennsylvania is high, you should check if you’re eligible for property tax exemption to lower your property tax bill. PA counties and school districts offer different types of tax reliefs:
- Homestead exclusion
- Farmstead exclusion
- Tax rebates for senior citizens
- Disabled veterans exemption
PA Property Tax Relief Homestead Exclusion Explained
The homestead exclusion in Pennsylvania reduces the financial burden that property taxes impose. Each taxing jurisdiction has a different budget according to which every school district sets up the allowed exclusion. The school district has to find another way to collect the money to fund the homestead exclusion. Most districts collect the tax revenue by increasing the earned income tax.
The exclusion covers an owner’s primary dwelling and the land on which the property is located, provided that the same person owns both.
The maximum amount of the homestead exclusion is one half of the property’s assessed value. For example, if your home’s assessed value is $60,000, your taxes will be calculated as if the value was $30,000.
Who Qualifies for PA Homestead Property Tax Relief?
You’ll get the PA homestead property tax assessment exclusion if:
- You’re the owner of the property in question
- The property is your permanent home
- You have the intention of returning to live in the said dwelling (in case you live in another location currently)
- The address of the property is the same address where you registered to vote
The homestead exclusion doesn’t apply to camps, rentals, vacation homes, and similar.
What Is PA Farmstead Exclusion?
If you live on a farm and have high property tax bills on farm buildings, you can apply for the farmstead exclusion. The farm exclusion works the same as the homestead one, but it applies to farm buildings and structures.
How Does One Qualify for Farm Property Tax Exemption in the State of PA?
If you want to qualify for the farmstead exclusion in Pennsylvania, your farm buildings need to be used for agricultural purposes only. These structures also need to be located on ten or more contiguous acres. The farm in question has to be your permanent residence.
If the farm is already exempt from property taxation under other exemption laws, you won’t get the farmstead exclusion.
Reduce Your Property Tax Bill in PA Easily With DoNotPay
Should you need any help lowering your property taxes in Pennsylvania, DoNotPay has a user-friendly solution you can try out:
- Access your account
- Click on the Property Tax feature
- Answer the necessary questions
- Follow the instructions provided in the guide
After you respond to the required questions, DoNotPay will generate an appropriate guide that will help you lower your property tax bill quickly. The guide will tell you:
- Which exemptions you qualify for
- What forms you need and how to complete them
- How to submit the application
DoNotPay will help you lower property taxes in every state and county in the U.S., including:
Has the School District Rejected Your PA Property Tax Relief Application? DoNotPay Will Help You File an Appeal
States often deny legit property tax exemption applications. If this happens to you, will help you handle the situation and file a property tax appeal. Besides offering a guide to lowering property taxes in Oregon, Indiana, and any other state, we will also provide instructions on:
- Filling out the required appeal forms
- Negotiating with your county’s assessor
- Collecting crucial evidence to support your exemption request
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