Germantown homeowners saw a 48.4% average increase in property assessments this past year, a whopping 18 percentage points higher than the city’s average of 31%, according to Philadelphia’s Office of the Controller. Homeowners in Mt. Airy saw a similarly high jump at 42.3%. The average jump in Chestnut Hill assessments was a smidge above the citywide average at 33.2%.

The rise in 2023 assessments comes on the heels of another steep rise in 2022 when homeowners in the Northwest grappled with 30% to 40% property tax increases. City assessors had put a pause on assessments during Covid, so that was the city’s 2022 assessment was the first in three years – and came just as housing prices had skyrocketed in neighborhoods across the city.

Tax bills are based on property assessments, so as those assessments go up, so do the tax bills that homeowners have to pay.

The good news? Philadelphia homeowners can still save money on their property taxes through the city’s Real Estate Tax Relief Program, which aims to assist residents who have seen a significant increase in their real estate tax bills. One of the requirements of eligibility, however, is to be a homeowner whose property tax bills have increased by 50% or more between the 2022 and 2023 tax assessments.

“Property taxes are a critical source of revenue for our city, but they can also put a strain on many Philadelphians,” said Philadelphia Mayor Jim Kenney. “This program is a way to strike a balance between these two competing needs. It will provide relief to those who need it most, while also ensuring that we have the resources to invest in our city’s future.”

Applications are now open and are due on Jan. 31 at 5 p.m. Recipients who qualify will be able to receive up to $500 in tax credit.

For City Council, this is a step in the effort to prevent families in lower-income neighborhoods from being taxed out of their homes, as investors buy and raise property value.

“City Council crafted this real estate tax credit to help eligible homeowners grappling with rising property taxes and higher assessments,” said Council President Darrell Clarke. “We don’t want Philadelphia homeowners priced out of their own homes by rising property taxes. This tax credit is one tool in the toolbox to help homeowners.”

The City of Philadelphia and City Council have also partnered with the FORWARD platform to deliver financial support across the city and have allocated $1.7 million in tax credits for the homeowners that they will support.

To be eligible, one must be a homeowner who makes no more than 80% of the Area Median Income for their household size.

For example, 80% of the current area median income for a family of four is $89,250, so a homeowner with a family of four would have to make that, or below that to qualify. For a family of five, the income limit is $96,400. 

People must submit their application through the FORWARD platform on the program’s website, gofwd.link/PATaxRelief.

The FORWARD platform is a Seattle-based organization that assists governments and agencies with community outreach. In their line of work, they have served over 100,000 people, worked with over 200 cities and counties and distributed over $1 billion in funds to help fulfill the goals of government initiatives.

The application is available in 68 languages, and applicants can receive application support if needed, which is available in multiple languages via phone, text and email.

There are required documents that a homeowner has to include such as proof of identity, proof of residency, and proof of income, that are also available on the online application page.