Montgomery County PA Property Taxes Explained (2026 Guide for Buyers and Sellers)
If you're buying or selling a home in Montgomery County PA, understanding property taxes is critical. Two homes with the same purchase price can have very different monthly payments depending on the township and school district, and countywide millage rates have inched up again heading into 2026.
Before you fall in love with a house, you need to know how taxes work here and how they affect your budget. Let’s break it down clearly.
How Property Taxes Work in Montgomery County
Property taxes in Montgomery County are made up of three main components:
County tax
Township, borough, or municipality tax
School district tax
The school district portion is typically the largest piece of a Pennsylvania property tax bill. That means where you buy—and which school district you’re in—matters just as much as your purchase price.
The county’s real estate millage is set at just over 5.6 mills for 2026, after a roughly 4 percent increase in the latest budget.
Each municipality (Abington, Lower Gwynedd, Lansdale, etc.) adds its own millage on top of the county rate.
Each school district sets its own tax rate, and in the Philly suburbs, Montgomery County ranks near the top for median school taxes in the state.
A 500,000 dollar home in one township may have a significantly different tax bill than a 500,000 dollar home in another, even with similar prices and square footage.
Why Taxes Vary So Much Between Towns
Montgomery County includes many municipalities, including:
Abington Township
Lower Gwynedd
Upper Dublin
Whitpain Township
Collegeville (in Perkiomen Valley SD)
Lansdale (various school districts in North Penn area)
Lower Merion
Norristown
Hatboro
Horsham
Each has its own local millage rate, and each school district has its own budget, tax base, and funding needs. That’s why:
Some townships have higher taxes but also higher perceived school quality and more services.
Others keep millage lower but may offer fewer municipal amenities.
Comparing homes only by price is incomplete. You need to know the total tax rate for that specific municipality and school district.
How Property Taxes Affect Your Monthly Payment
Here’s a simplified example to show why this matters:
Home A
Purchase Price: 500,000 dollars
Annual Property Taxes: 6,500 dollars
Monthly Tax Portion: about 540 dollars
Home B
Purchase Price: 500,000 dollars
Annual Property Taxes: 11,000 dollars
Monthly Tax Portion: about 920 dollars
That’s a difference of 4,500 dollars per year—or roughly 375 dollars per month—for homes with the same price but different tax structures.
Over time, that difference affects:
Your monthly comfort level
How much home you can qualify for with a lender
Your total cost of owning in one township versus another
When we evaluate homes, we look at principal, interest, and taxes so you’re not surprised later.
Do Property Taxes Increase?
Yes. Property taxes can and do increase over time due to:
School district budget changes and rising education costs
County‑level budget adjustments and millage changes (the county’s 2026 budget includes about a 4 percent property tax increase).
Municipal or township‑level tax changes, including dedicated levies like fire taxes in some towns.
Pennsylvania does not reassess property values statewide every year, but:
Local municipalities and school districts can adjust their millage rates annually.
Countywide reassessments sometimes occur to realign assessed values with market conditions.
We review current tax bills and, where possible, recent trends in a township so you understand what you’re stepping into.
What About Reassessments After Purchase?
In some cases, after a property sells, the sale price may trigger a review or appeal of the assessed value. Key points:
A reassessment or review does not automatically mean your taxes will spike, but your assessed value could be adjusted closer to market value.
After a countywide reassessment, assessing bodies often adjust millage rates to avoid enormous tax swings, but your individual bill can still go up, down, or stay similar.
If you believe your assessment is inaccurate, you can file an appeal with the county’s Board of Assessment.
We discuss township and school district patterns during your buying process so you’re not caught off guard in year two or three of ownership.
Are Higher Taxes Always a Negative?
Not necessarily. Higher taxes can reflect:
Stronger or more highly rated school districts
More municipal services (parks, libraries, public safety, road maintenance)
Desirable locations with strong buyer demand
Stable or rising property values over time
For some buyers, paying slightly higher taxes in a stronger resale area is a smart trade‑off. For others, keeping the monthly payment as low as possible is the priority. This is a strategic decision that depends on your budget, timeline, and long‑term plans.
How We Help Buyers Evaluate Property Taxes
When you work with us, we treat property taxes as a core part of your strategy, not an afterthought. We:
Review actual current tax bills for specific properties (not just estimates).
Compare township and school district differences for your target areas.
Estimate total monthly payment with principal, interest, taxes, insurance, and any HOA dues.
Analyze long‑term affordability based on likely future tax trends.
Discuss how a property’s tax profile might impact future resale and buyer demand.
👉 Want to compare taxes across specific towns?
Schedule your Buyer Strategy Consultation here
We’ll break down the numbers clearly so you can choose towns and homes that fit your real monthly comfort zone.
Thinking About Selling?
Property taxes can impact buyer demand and perceived affordability:
High taxes can push some buyers out of a price range or town.
Balanced taxes and strong schools can be a selling point if positioned correctly.
If you’re curious how your home’s tax structure compares to others nearby:
👉 Get Your Instant Home Value Here
We can also talk about how your taxes and school district affect pricing strategy and target buyer profiles.
Frequently Asked Questions About Montgomery County Property Taxes
Are Montgomery County property taxes high?
Compared with the rest of Pennsylvania, yes, Montgomery County is on the higher end, with median annual property taxes around 5,700–5,900 dollars—among the top counties in the state. Within the county, however, there is wide variation between townships and school districts.
Can I appeal my property taxes?
Yes. Homeowners can appeal their assessment if they believe the assessed value is inaccurate or not in line with comparable properties. Successful appeals usually require data on recent sales and clear evidence, not just a desire to pay less.
Are taxes included in my mortgage payment?
Most buyers choose to escrow property taxes through their lender, meaning taxes are collected monthly as part of your mortgage payment and paid out by the lender when due. You can also choose to pay directly in some cases, depending on the loan.
Do new construction homes have higher taxes?
Often yes. New construction frequently moves land from a lower, pre‑development assessment to a much higher improved value once the home is built, and newer infrastructure or amenities can contribute to higher overall bills.
Ready to Make a Smart, Informed Decision?
The right home is not just about list price—it’s about total monthly comfort and long‑term value. Understanding Montgomery County property taxes helps you avoid surprises and choose towns that truly match your budget.
👉 Book Your Buyer Strategy Call Today
We’ll review your target towns, compare tax impact, and help you build a clear, confident plan before you start touring.
