Around the Block: 11/15/24

11/15/2024

Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff "City" Block

HOMESTEAD EXEMPTION APPLICATION DEADLINE:

DECEMBER 1, 2024

Hey Readers,

It may seem that City Hall does not give you much... but then there is the Homestead Exemption. Make sure you don't miss out.

You can use the Philadelphia Homestead Exemption to reduce your annual real estate taxes by $1,400. Simply complete a brief online application. Here is the whole situation in a nutshell—

1. For 2025, every Philadelphia residential property owner is eligible for the $100,000 Homestead Exemption. Note that this amount has increased over the previous year’s $80,000 exemption.

2. The exemption works as a straight $100,000 reduction of your 2025 property tax assessment. The Philly tax rate is 1.3998%. So, if your 2025 assessment is $750,000, your taxes would be $10,498.50. The Homestead Exemption would reduce it to $650,000, which corresponds to a tax of $9,098.70. An annual savings of $1,3998.80.

3. For those less mathematically inclined, note that the $100,000 exemption at a rate of 1.3998% will equal a savings of $1,3998.80, no matter what amount your assessment is. Also, if your assessment is $100,000 or less, your tax will be $0.

4. If you had the Homestead Exemption at your property in past years, it should automatically continue, but always best to check and confirm.

5. To check, go to https://property.phila.gov/ and type in your property address. Very straightforward unless you live in a condo. In that case, it can sometimes be a little tricky to find your property. Please let me know if you have an issue.

6. On your specific property page, scroll down to the Valuation History section, and it should state $100,000 in the far right column titled Exempt Improvement. If it does, you have the 2025 Homestead Exemption. If it has $0, you do not have the Homestead Exemption. If it has some lesser amount between $0 and $100,000, then see No 9 below.

7. If your Exempt Improvement is greater than $100,000, that means you have another more valuable exemption, such as the Tax Abatement or LOOP. Note that you can only have one exemption, so if your exemption is greater than $100,000, you are all good there.

8. Remember, the Homestead Exemption is for owner-occupied primary residences only, so if you are an investor, you are not eligible, and it should state $0.

9. If you are an owner occupant in a multi-unit property or otherwise use any portion of the property for business purposes, you may be eligible for a reduced Homestead Exemption based on the percentage of residential owner occupancy.

10. If you purchased a new Philadelphia primary residence in 2024, make sure you re-apply.

11. If you are eligible for the 2025 Homestead Exemption but do not have it, then the information to apply and the application can be found here. BE SURE TO APPLY BY THE 12/1 APPLICATION DEADLINE, OR YOU WILL MISS OUT ON THE $1,400 SAVINGS FOR 2025.

12. Most Homestead Exemption situations are straightforward, but for a variety of reasons, they may not be. If you believe this applies to you, then please do not hesitate to reach out, and we can discuss it.

Finally, figure out what you are going to do with that $1,400 tax savings for 2025. Have a great weekend.

Best regards,

Jeff

Spotlight Property

Featured Listings

Chestnut Hill - pending

102 W Gravers Lane

3 BD | 2.5 BA | 2000 SF | $895,000

Point Breeze

2418 Manton Street

3 BD | 2.5 BA | 2200 SF | $495,000

Graduate Hospital- PENDING

1420 Pemberton Street

4 BD | 5 BA | 3750 SF | $1,275,000

Roxborough

371 Delmar Street #B

3 BD | 2.5 BA | 2658 SF | $625,000

Center City West

1811 Chestnut Street #501

2 BD | 2.5 BA | 1337 SF | $539,500

Germantown

48 E Penn Street

2 BD | 2.5 BA | 1982 SF | $425,000

Cobbs Creek - NEW PRICE

6200 Ellsworth Street - Triplex

7 BD | 4 BA | 3015 SF | $495,000

University City

5040 Larchwood Avenue

3 BD | 2.5 BA | 1700 SF | $525,000

Center City West - pending

1919 Chestnut Street #1520

2 BD | 1 BA | 1134 SF | $475,000

Lower Moyamensing

1116 Tree Street

2 BD | 2 BA | 1657 SF | $349,500

Cobbs Creek - BRAND NEW LISTING

5759 Catharine Street

3 BD | 2 BA | 1122 SF | $225,000

Center City West

1001 Chestnut Street #506E

1 BD | 1 BA | 505 SF | $229,900

University City - PENDING

3513 Hamilton Street

3147 SF | $379,000

Know Someone Looking to Buy or Sell?

As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.

Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.

Some imagery in this e-newsletter was sourced via visitphilly.com and Canva.