Pennsylvania Property Tax

Editor’s Note: For purposes of this article, we will discuss taxes on real property in Pennsylvania.

While federal tax rates are the same across the board, state real property taxes are another story. In addition to income state taxes, any individual who owns real property is subject to state real property taxes.

Property tax is a system of taxation that requires owners of land and buildings to pay an amount of money based on the value of their land and buildings.

Who Owes Pennsylvania Property Tax?

If you own property in Pennsylvania you will be required to pay taxes on it. Even if the property was gifted to you through an estate or you own a rental property, you are still required to pay real property taxes.

There is no minimum or maximum amount to pay on your property in Pennsylvania to pay property taxes. Whether you have a $50,000 or $5,000,000 house, you will owe property taxes in Pennsylvania.

If your property was purchased mid-year, there is a chance your realtor will work it out that you and the seller split the cost of property taxes within the calendar year. Your mortgage interest statement provides documentation if this is the case or not.

What is the PA Property Tax Rate?

The PA property tax rates vary from county to county. Local governments within the state use various methods to calculate your real property tax base.

Overall, Pennsylvania has property tax rate that exceeds the national average. The average effective property tax rate in Pennsylvania is 1.58%, compared to the national average of 1.08%.

Median Property Taxes In Pennsylvania By County

(Source: Tax-Rates.org)

What Are Pennsylvania Property Taxes Used For?

The money collected by Pennsylvania is used for multiple public services throughout the state. It could be used for:

• First responders and other law enforcement
• General government services
• Local levies
• Municipal infrastructure and land construction or improvements
• Municipal employees’ pay
• Resident services like garbage pickup
• Recreational services
• Protective services

How Do You Pay Property Tax in PA?

After you purchase a property, you can set up your real property taxes to be paid in escrow.

If you already own a property, and are not sure if you are paying them or not, view your mortgage statement, and make sure it includes:

• Principal
• Interest
• Homeowner’s insurance
• PA property taxes

Visit the Pennsylvania Department of Revenue website for more information.

When Do You Have to Pay PA Property Taxes?

Property taxes in Pennsylvania are due on March 31 each year. If your PA property taxes are drawn monthly, you should have no remaining balance at this deadline.

You can receive a 1% discount for paying your bill on or before the last day of February. (The Pennsylvania Department of Revenue mails Real Estate Tax returns to property owners in December.)

Where To Go For More Property Tax Help

Gauging how the property tax is calculated and the proper amount is important, otherwise, you may be paying too much, too little, or not at all. Beyond this, there is a federal real estate tax deduction you can take if you itemize. But to determine how much the deduction is, who gets it, and when can be tricky.

If you’re looking for additional support with your Pennsylvania tax questions, look no further than H&R Block Virtual. We’ll pair you with a tax pro with state-specific expertise. You can have your taxes done by a real tax pro without visiting an office.

Prefer a different way to file? No problem – you can find Pennsylvania state tax expertise with all of our ways to file taxes.