Philadelphia property values jump in new assessment
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Philadelphia's property values spiked for many residential homeowners in the first reassessment after last year's hiatus.
Why it matters: Bigger bills are coming for some property owners despite the city's property tax rate staying flat in Mayor Cherelle Parker's first budget.
State of play: On average, residential property values are up 19%, which means the typical homeowner can expect to pay $615 more a year in taxes, according to Parker administration officials.
- Meanwhile, valuations for office buildings slumped 6%, a worrying signal for a market struggling to adjust to post-pandemic remote and hybrid work.
- Overall, citywide assessed property values rose approximately 11.6%, the city's chief assessment officer, James Aros, Jr., said during a news conference.
What they're saying: "Our residential real estate market is strong: That's a good indicator of Philadelphia's desirability but, then again, it means taxes will go up," city finance director Rob Dubow said.
Zoom in: The Parker administration will begin mailing new property assessments and posting them online on Wednesday.
- Property taxes are due by March 31, 2025.
- The deadline for property owners to challenge their new assessments is Oct. 7.
The intrigue: The new assessments for the city's 580,000 properties are months behind schedule.
- Property owners typically receive their new tax bills around May or at least before the city budget is passed at the end of June.
Between the lines: Philly has struggled in recent years to conduct reassessments annually.
- That's led to big spikes in revaluations for property owners amid rapidly rising real estate prices.
Flashback: The Office of Property Assessment (OPA) skipped new assessments in 2023 as the office slogged through a sharp rise in appeals from the previous year.
- OPA has been plagued with faulty and inaccurate property assessments in recent years, leading to investigations and reforms.
City lawmakers increased the homestead exemption for residential property owners to $100,000, up from $80,000, this year.
- That program could shave up to about $1,400 off property tax bills for eligible homeowners.
- Residential homeowners enrolled in the homestead exemption will see their taxes go up an average of $330 a year, per the administration.
What's next: There's no guarantee the Parker administration will conduct new assessments next year.
- "The goal is regular reassessments," Dubow said. "We just got this year's out so it's going to take us a little while to think about next year."
Editor's note: This story has been updated with corrected information from city officials about the valuations and their impact on tax bills.