Property Taxes in Montgomery County PA Explained (2026 Guide for Buyers and Sellers)
Property taxes in Montgomery County, PA are driven by assessed value and local millage rates, and they now include a 2026 county‑wide increase of about 4%, which adds roughly 36 dollars per year for an average homeowner. Understanding how those pieces fit together is essential for both buyers and sellers.
How Property Taxes Are Calculated
In Montgomery County, your annual property tax bill is based on:
The assessed value of your home (set by the County, not the market).
The county millage rate.
The school district millage rate.
The municipal (township/borough) millage rate.
The County’s adopted 2026 budget sets:
A county operating millage of 5.462 mills and a community college millage of 0.49 mills, for a total county real estate tax millage of 5.952 mills.
For a “typical” single‑family home with about 171,200 dollars assessed value (roughly a 556,500 dollar market value), that equates to around 935 dollars in county real estate tax in 2026.
Assessed value is not the same as market value. The County uses a base year system, so many assessments lag current sale prices; that is why two homes selling for similar amounts can have very different tax bills.
What “Millage” Means
A mill is one‑tenth of a cent, or 1 dollar of tax per 1,000 dollars of assessed value.
Basic formula:
Annual tax = (Assessed value ÷ 1,000) × (Total mills).
Example:
Assessed value: 150,000.
Total millage: 30 mills.
Annual tax ≈ 150 × 30 = 4,500.
Because millage rates vary by school district, municipality, and the county, two nearly identical homes in different townships can have very different tax bills.
Why Taxes Vary Across Montgomery County
Taxes differ due to:
School district funding needs and budgets (usually the largest part of the bill).
Municipal budgets for police, roads, parks, and services.
County services and the community college millage.
Voter‑approved referenda or specific local projects.
Recent examples:
Montgomery County’s 2026 budget raises the county millage from 5.252 to 5.462 mills and the community college millage from 0.39 to 0.49 mills, a combined increase of about 4%, adding roughly 36 dollars per year for an average single‑family home.
Wissahickon School District’s 2025–2026 budget includes a 4% real estate tax increase, which adds about 204.93 dollars per year for a median assessed home (around a 642,000 dollar market value), while still keeping rates below the Montco district average.
Because each district and municipality sets its own rates, you must evaluate each property individually.
Examples by District (Conceptual, Not Exact Quotes)
While exact 2026 millage varies and changes regularly, market commentary and district budgets generally show:
Lower Merion: Higher‑value homes and strong district spending mean higher overall tax bills, even when millage rates are comparable.
Wissahickon: Homes often carry premium pricing and moderate‑to‑strong taxes, but the district notes its tax rate is still among the lower half of the 21 Montco districts.
Colonial: Typically mid‑range for both prices and taxes, balancing strong schools with commuter appeal.
The key takeaway: two houses at the same listing price in different districts or townships can have very different tax burdens.
What Buyers Should Know
When you evaluate affordability, factor in:
Monthly principal and interest on your mortgage.
Property taxes (based on current assessment and millage).
Homeowners insurance.
HOA or condo fees, if applicable.
A home with a lower price but high taxes can cost more per month than a slightly higher‑priced home with lower taxes. Pre‑approvals and payment estimates should use actual tax data from public records, not generic estimates.
Buyers should:
Pull the current tax bill from county/municipal databases.
Check whether the assessed value seems low relative to recent sale price.
Ask how school tax changes (like Wissahickon’s recent 4–4.87% increases) might affect future bills.
What Sellers Should Know
If you are selling in Montgomery County:
Buyers will compare tax bills between your home and others in similar price ranges.
High taxes require clear value positioning—condition, schools, location, and features must justify the carrying cost.
Strong school district reputation can help offset tax sensitivity, but only if pricing is aligned with the market.
Being transparent and providing copies/links to tax data builds trust and minimizes surprises during underwriting.
Pricing strategy should always consider how your tax bill looks next to competing listings.
Will Taxes Go Up After You Buy?
They can. Key drivers are:
County or school district budget changes, which may adjust millage up or down.
Reassessments. Montco does county‑wide reassessments periodically, and individual properties can be reassessed when changes occur (additions, new construction, etc.).
If you buy well above the current assessed value, there is risk that a future reassessment will increase your taxable assessment toward true market value, raising your bill.
Buyers should review:
Current assessment and tax bill.
Recent sale prices and assessments of nearby comparable homes.
Whether the property has a history of appeals or recent assessment changes.
Appealing Property Taxes in Montgomery County
You can appeal your assessment, not the millage rate. Appeals argue that the assessed value is too high relative to fair market value.
Key points from the county’s Board of Assessment materials:
There are two main appeal types:
Annual appeals: must be filed by August 1 to affect the following year; hearings must be held by October 31.
Interim appeals: must be filed within 40 days of a change notice (e.g., after a reassessment following a building permit).
The principal factor is the property’s current fair market value at the time of appeal.
If you win an appeal, your assessed value is lowered, which reduces future tax bills until the next reassessment or change.
FAQs (Buyer & Seller Quick Answers)
Are property taxes high in Montgomery County?
They range widely. Some districts and townships (like Lower Merion and certain high‑service areas) carry higher bills; others have lower millage or lower average assessments.Do school districts impact tax rates?
Yes. School taxes are often the largest line item and change with each district’s budget decisions.Will my taxes automatically increase after buying?
Not automatically, but county‑wide or local reassessments and annual budget changes can increase your bill over time.How do I find a home’s exact taxes?
Use the county’s tax and assessment search tools, township websites, or local tax collector resources to look up the current bill by parcel or address.
Want a Clear Picture of Total Cost?
Before you commit to a home in Montgomery County, it helps to see the full monthly cost and long‑term implications.
👉 Schedule Your Buyer Strategy Consultation
We can review:
Taxes by township and district.
Monthly payment scenarios at your target price.
School district alignment and likely resale impact.
Whether an appeal might be viable after closing.
If you are selling and concerned about how your tax bill affects buyer perception:
