Property taxes in Pennsylvania: what to know before you buy in 2026
Property taxes can change your real monthly payment by hundreds of dollars, even when two homes have the same price. In Pennsylvania—and especially around Philadelphia—taxes vary a lot by county, township, and school district, so you want to treat them as a core part of your home search, not an afterthought.
Why property taxes matter so much
Property taxes are a permanent part of your housing cost and directly affect:
Your total monthly payment, not just year‑one but every year you own.
How much house you can comfortably afford at a given income.
How two similarly priced homes in different areas compare once you add everything up.
Example: Philadelphia’s effective property tax rate is about 1.39% of market value, so a $250,000 home has a tax bill around $3,400/year (about $280/month). In some suburban districts, total millage can push annual bills into the $8,000–$10,000+ range for similarly valued homes, which can add $400–$500/month versus the same‑priced house elsewhere.
How property taxes are set in Pennsylvania
In most of Pennsylvania, your bill is a combination of:
County tax
Municipal/township or borough tax
School district tax (often the largest portion)
All three pieces use the same formula:
Assessed value × total mills ÷ 1,000 = annual tax
Example from Chester County (same logic everywhere): a $100,000 assessed value × 5.99 mills for one tax line = $599 for that line. School district, county, and township rates are added together to get your full bill.
Key points:
School district millage varies widely; 2025–26 state tax tables show some districts over 25–30 mills, while others are much lower.
Assessments are based on assessed value, which may be a fraction of market value (via a “common level ratio”), not simply what you pay.
Pennsylvania’s assessment systems differ by county and are often out of sync with current sale prices, which is why you must look at the actual tax bill for each property.
City vs suburbs: how it changes the math
Philadelphia vs nearby counties works very differently:
Philadelphia
Single, citywide real‑estate tax rate of about 1.39% of market value, split between city and school district.
Median school‑property tax bill is relatively low (around $1,086, less than half the statewide median), thanks in part to homestead reductions and lower assessed values.
But residents also pay a high city wage tax (~3.75% in 2025–26), raising overall tax burden even if property taxes are lower.
Suburbs (Montgomery, Bucks, Chester, Delaware, etc.)
Property tax rates are highly school‑district driven and can be among the highest in the state, especially in some Philly‑area suburbs.
Recent reports show counties like Bucks and some Montgomery‑area districts carrying some of Pennsylvania’s highest school taxes, with millage that can produce $8,000–$9,000+ bills on a $300,000 assessment.
Many suburban residents avoid the Philadelphia resident wage tax, which boosts take‑home pay but must be weighed against higher property taxes and, in some places, local earned‑income taxes.
This is why two people with the same income and home price can feel very different day‑to‑day comfort depending on whether they buy in the city or a particular suburb.
Why a purchase can change the tax picture
The tax bill you see online is often based on an older assessment and may not match what you will pay long term.
Important realities:
In many counties, assessments do not automatically jump to the sale price when you buy, so your initial bill may reflect the prior, lower assessed value.
However, school districts across Pennsylvania increasingly file assessment appeals on recently sold homes when the purchase price is much higher than the current assessed value, pushing taxes up for the next year.
Appeals and reassessments generally take effect January 1 of the following tax year, so changes lag your closing date.
This does not mean you should avoid homes with low current taxes; it means you should budget with some cushion and understand the local history of appeals and reassessments.
The right way to compare homes with different taxes
Instead of comparing only list prices, compare full monthly cost:
Principal and interest (mortgage)
Property taxes
Homeowners insurance
HOA/condo fees, if any
Because taxes vary so much, a slightly higher‑priced home in a lower‑tax area can end up cheaper per month than a “cheaper” house with a much higher annual tax bill.
Use actual tax records or reliable local estimates rather than generic national calculators whenever possible.
The biggest mistake buyers make with taxes
The most common mistake is ignoring taxes until the last minute.
Buyers fall in love with a house, get comfortable with the price and rate, and then are shocked when the lender estimate shows a total monthly payment hundreds higher than expected because of taxes.
A better approach is to make property taxes part of your decision from the beginning, alongside price, payment, and commute.
How to protect yourself from tax surprises
A practical way to stay ahead of taxes when you shop:
Always review the actual tax bill (or county/township data) for any home you are serious about.
Ask your agent or the local tax office how assessments work and how often they change in that county or district.
Build your budget around the full monthly payment, not just the mortgage piece.
Leave a buffer in your monthly comfort zone in case of future millage increases or an assessment appeal after you buy.
If you already own, remember you can often appeal your assessment by county deadlines (for 2026 appeals, generally by August 1 in most counties outside Philly).
Want help understanding taxes in the areas you are considering?
If you want help comparing towns, neighborhoods, and specific homes based on real monthly costs, including property taxes, you can book a quick call with Shaina McAndrews, Realtor, and walk through it together:
Already own and wondering how your taxes affect your value?
If you already own a home and are thinking about selling—or just want to see how your taxes and value compare in today’s market—you can start with a current value report here:
Property taxes in Pennsylvania can dramatically change what a home really costs to own. In 2026, the savviest buyers are the ones who look beyond the sticker price and plan around the full monthly payment, including taxes, not just principal and interest.
With clear numbers and a bit of guidance, you can avoid surprises and choose a home that truly fits both your budget and your life.
