Everything You Need to Know About the Homestead Exemption

If you own property in Philadelphia and use it as your primary residence, you may be eligible for the Homestead Exemption—an incredibly valuable benefit that can significantly reduce your annual real estate taxes. However, when a property changes hands, the existing exemption is removed and must be reapplied for by the new owner. Below, we’ll break down what the Homestead Exemption is, why it matters, and how to apply for it.

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What Is the Homestead Exemption?

The Homestead Exemption is a tax relief program offered by the City of Philadelphia. It lowers the taxable assessed value of your primary residence, which in turn can lower your annual property tax bill substantially. Think of it as an essential tax break that every homeowner who qualifies should consider.

Key Points:

• Available for primary residences only.
• Reduces the taxable portion of your home’s assessed value.
• Can save you hundreds of dollars each year in property taxes.

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Why You Must Reapply After a Property Sale

One critical detail about the Homestead Exemption is that it doesn’t automatically transfer to a new owner when the property is sold. The moment the property changes hands, the existing exemption is removed. As the new homeowner, you must reapply to continue receiving the benefit.

What This Means for You:

• If you just bought a home, make sure to submit a new application.
• Don’t assume the exemption will carry over from the previous owner.
• Applying (and reapplying) on time ensures you won’t miss out on tax savings.

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How to Apply for the Homestead Exemption

Fortunately, signing up is a straightforward process. You can find detailed instructions, eligibility requirements, and the application forms on the City of Philadelphia’s official website.

Click here for more information on eligibility and to begin your application.

Tips for Applying:

1. Gather necessary documents such as proof of residency and proof of ownership.
2. Double-check deadlines so you don’t miss out on this year’s tax relief.
3. Submit your application early to ensure timely processing.

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The Bottom Line

Taking advantage of the Homestead Exemption is a smart financial move for Philadelphia homeowners who live in their property year-round. The potential tax savings can be significant, and the process is relatively simple.

Remember:

• Reapply when you buy a new home.
• Verify that you meet the residency and ownership requirements.
• Keep an eye on deadlines and submit your application as soon as possible.

If you’re a Philadelphia homeowner, don’t leave money on the table. Sign up for the Homestead Exemption and start saving on your property taxes today!

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Have more questions or need guidance on the application process? Check out the city’s official Homestead Exemption page for detailed information and assistance.