What to Know About Property Taxes in Pennsylvania Before You Buy in 2026
Property taxes in Pennsylvania can change your monthly payment more than you think, especially around Philadelphia, so it is critical to evaluate them alongside price and interest rate—not as an afterthought.
Why Property Taxes Matter So Much
Property taxes are a permanent, built‑in part of your housing cost.
They directly affect:
Your total monthly payment (principal, interest, taxes, insurance).
How much house you can comfortably afford at a given price.
Whether one home is truly more affordable than another at the same list price.
In some areas, taxes can add hundreds of dollars per month compared with a similar‑priced home in a neighboring town.
How Property Taxes Are Set in Pennsylvania
In Pennsylvania, property taxes are typically made up of three main layers:
County tax
Municipal or township tax
School district tax (often the largest portion)
Because each school district and municipality sets its own millage rates, two homes half a mile apart can have very different annual tax bills.
Key points:
Taxes are based on assessed value, not necessarily your purchase price.
Assessment practices vary by county—some counties revalue more frequently than others.
Always look at the actual tax record for a specific property, not just a generic online estimate.
City vs Suburbs: Why It Feels Different
Where you buy has a major impact.
In Philadelphia:
Property taxes are structured differently than in many suburbs and have historically been lower relative to market value than some surrounding counties.
You also need to factor in the city wage tax if you live in the city, which reduces take‑home pay and affects your overall budget.
In the suburbs:
You avoid the Philadelphia resident wage tax, which can improve net income, especially for higher earners.
Property taxes can be higher or more variable, especially in high‑performing school districts.
Different counties (Montgomery, Bucks, Delaware, Chester) and their townships/school districts can have very different millage rates.
This is why two buyers with the same salary and similar home prices can feel vastly different monthly comfort levels depending on city vs suburb and the specific district they choose.
Why New Purchases Can Change the Tax Bill
One of the biggest surprises for buyers is that the tax bill you see today is not always the tax bill you will have long term.
In some cases:
A sale can trigger a reassessment or review, especially if the purchase price is much higher than the current assessed value.
Long‑time owners may benefit from older, lower assessments; a new owner might see taxes adjust upward over time.
This does not mean you should avoid those homes, but you should:
Understand how reassessment works in that county.
Leave room in your budget in case taxes increase.
The Right Way to Compare Homes With Different Taxes
Instead of looking only at price, compare homes by full monthly payment:
Principal + interest (based on your loan terms)
Property taxes
Homeowners insurance
Any HOA/condo fees
Two common outcomes:
A slightly higher‑priced home in a lower‑tax area can be cheaper month‑to‑month.
A “deal” home with surprisingly high taxes can push your payment above your comfort zone.
Running the full payment on each property is the only way to see the real cost difference.
The Biggest Mistake Buyers Make With Taxes
The biggest mistake is ignoring taxes until the last minute.
A typical pattern:
Fall in love with a house based on photos, price, and location.
Run quick mortgage estimates without accurate taxes.
Discover at the 11th hour that the full payment is hundreds more per month than expected because of taxes.
A better approach is to bring taxes into the conversation from the very beginning, right alongside price, rates, and commute.
How to Protect Yourself From Surprises
A practical way to approach property taxes when you shop:
Always review the actual current tax bill for any home you are serious about.
Ask how assessments and appeals work in that county or township.
Build your budget around the full monthly payment, not just the principal and interest.
Leave some buffer in your budget in case taxes rise over time due to reassessment or millage changes.
Doing this up front keeps you from stretching too far and makes your decision much less stressful.
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 Curious How Your Taxes Affect Your Value?
If you already own a home and are thinking about selling or just want to understand where you stand, start by getting a clear idea of your home’s current value:
Property taxes in Pennsylvania can have a huge impact on what a home really costs to own. The savviest 2026 buyers are the ones who look beyond the sticker price and plan around the full monthly payment—including taxes—before they fall in love with a house.
With the right information and a little guidance, you can avoid surprises and choose a home that truly fits both your budget and your life.
