Pennsylvania Property Tax Relief Program

Pennsylvania property tax relief programs help seniors and the disabled stay in their homes.

Pennsylvania property owners bear a relatively high property tax burden. The Tax Foundation found that the state's property tax burden was 11th highest among the states in 2008. In an effort to help senior citizens and the disabled, the commonwealth established a property tax/rent rebate program.

Property Tax Rebate

Pennsylvania citizens aged 65 or older, widows and widowers aged 50 or older and any permanently disabled adult may apply for a rebate. Anyone with an annual income of up to $8,000 (excluding half of Social Security payments) can receive a property tax rebate of up to $650. The other rebate rates are $500 for incomes of $8,001 to $15,000; $300 for incomes of $15,001 to $18,000; and $200 for incomes between $18,001 and $35,000. Additionally, beneficiaries residing in Philadelphia, Pittsburgh and Scranton receive 50 percent more if their incomes are less than $30,000. Other beneficiaries receive 50 percent more if they have an income less than $30,000 and pay more than 15 percent of that income in property taxes.

Rent Rebate

Since rent payments include property tax costs, the state also offers a rent rebate program for people who would qualify for the property tax rebate but rent their homes. The rebate rates are $650 for incomes of $8,000 and less, and $500 for incomes of $8,001 to $15,000.

Tax Relief in Pennsylvania

In 2006, Pennsylvania began allowing casino gambling and taxed revenues at 55 percent. Pennsylvania diverts that revenue to school district property tax relief. Gov. Ed Rendell announced that the property tax relief programs saved homeowners almost $770 million in 2009. School districts, counties and municipalities levy separate property taxes.

References

• The Tax Foundation: State and Local Tax Burdens
• Commonwealth of Pennsylvania: Property Tax/Rent Rebate Program
• Commonwealth of Pennsylvania: Property Tax Relief