Pennsylvania Property Tax 2026: Homestead Exclusion, Common Level Ratio and Allegheny Changes

Pennsylvania is the most decentralized property tax system in the United States — 67 counties, 2,562 municipalities, and 500 school districts, each setting their own millage and managing their own assessment rolls. There is no statewide reassessment, so values can be years or decades out of date, and the Common Level Ratio (CLR) is the only tool that equalizes assessments across jurisdictions. This 2026 guide covers how CLR works, how to use it to win an assessment appeal, the homestead exclusion paid by gaming revenue, and the Property Tax/Rent Rebate Program that covers up to $1,000 per year for qualifying seniors.

How Pennsylvania Property Tax Works (and Why It's Unusual)

Pennsylvania has no statewide reassessment cycle. Each of the 67 counties chooses its own reassessment schedule, and many have gone 20 to 50 years without a countywide update. Philadelphia completed a 2023 reassessment; Allegheny County (Pittsburgh) last did a full reassessment in 2012 and is currently phasing in changes via appeals rather than wholesale revaluation.

The result: assessed values can reflect market conditions from decades ago. To compensate, the Pennsylvania State Tax Equalization Board (STEB) calculates an annual Common Level Ratio for each county, measuring the ratio of assessed values to recent arm's-length sale prices. The CLR is used in appeals to equalize old assessments against current market values.

The Tax Calculation

Pre-Determined Ratio (PDR) vs Common Level Ratio (CLR)

Each county has a Pre-Determined Ratio (the ratio at which new construction is assessed). Allegheny County's PDR has been 100% since the 2012 reassessment. Philadelphia's is also 100% post-2023. Many counties use 50%, 33.33%, 25%, or other ratios.

The CLR is the actual assessment-to-market ratio measured by STEB. When CLR is significantly below PDR, the county's assessments are "underperforming" the PDR — which creates the equity-of-assessment argument in appeals.

Homestead and Farmstead Exclusions (Act 50 / Act 1)

Pennsylvania's homestead exclusion is funded partly by state gaming revenue distributed through Act 1 (taxpayer relief) and partly by local option under Act 50. The exclusion reduces assessed value on your principal residence.

Act 1 Homestead/Farmstead Exclusion

Funded by state gaming revenue and distributed to school districts for homestead and farmstead exclusions. The dollar amount per homestead varies by school district based on the allocation formula; typical Act 1 exclusions range from $200 to $700 in annual school tax relief.

Act 50 Homestead Exclusion (Allegheny County)

Allegheny County's Act 50 homestead exclusion reduces assessed value by $18,000 for county real property tax purposes, for qualifying owner-occupied residences. Municipalities and school districts within Allegheny County may adopt additional exclusions up to 50% of median assessed value.

Application

Apply with the county assessment office using the Homestead/Farmstead Application. The deadline for school tax relief is typically March 1 preceding the tax year. Once approved, the exclusion continues until ownership changes or the property ceases to be the primary residence.

Who qualifies

• The property is your primary residence (domicile)
• You own an ownership interest and occupy the property
• You file the application with the county

Property Tax/Rent Rebate Program (Expanded 2024)

Pennsylvania's Property Tax/Rent Rebate Program was significantly expanded by Act 7 of 2023, which took effect for the 2023 claim year (filed in 2024). The program now provides state-funded rebates up to $1,000 per year for eligible homeowners and renters.

Who qualifies (2026 program for 2025 claim year)

• Age 65 or older; or widows/widowers age 50 or older; or disabled residents age 18 or older
• Annual household income ≤ $45,000 (Social Security excluded from income calculation for most recipients)

Rebate amounts

Household Income	Maximum Rebate
$0 – $8,000	$1,000
$8,001 – $15,000	$770
$15,001 – $18,000	$460
$18,001 – $45,000	$380

Rebate amounts phase with income. Additional supplement of up to 50 percent of the base rebate is available to Philadelphia, Scranton, Pittsburgh residents with income under $30,000 where property tax exceeds 15 percent of income.

How to file

File form PA-1000 with the Pennsylvania Department of Revenue by June 30 of each year for the prior tax year. Free filing assistance is available through the Department of Revenue, AARP Tax-Aide, and many senior centers.

Appealing Your Assessment — County-Specific Deadlines

Pennsylvania appeal deadlines and procedures differ dramatically by county.

Allegheny County

Deadline: September 2 of the year preceding the tax year (so September 2, 2025 for the 2026 tax year). Filed with the Board of Property Assessment Appeals and Review (BPAAR). This is one of the most generous appeal windows in Pennsylvania.

Allegheny County's CLR fell from 54.5% (2025) to 50.1% (2026), making this appeal window particularly valuable. Under Pennsylvania law, if the CLR is 15% or more below the PDR, property owners who appeal can have their assessment reduced by the CLR factor.

Philadelphia

Deadline: the first Monday of October of the year preceding the tax year. Filed with the Office of Property Assessment (OPA), then to the Board of Revision of Taxes (BRT) if unresolved.

Other counties

Most PA counties set their appeal deadline as August 1 of the year preceding the tax year, though some use September 1 or a later date. Check your county's chief assessor or Tax Claim Bureau website for the specific date.

Escalation

From the county Board of Assessment Appeals, further appeals go to the county Court of Common Pleas within 30 days. From there, the Commonwealth Court of Pennsylvania and ultimately the Pennsylvania Supreme Court.

Payment Schedule and Tax Sale

Pennsylvania property tax bills come from multiple taxing bodies at different times:

• County tax bill: Typically mailed in February/March, with face value due by April 30. Discount for early payment (usually 2%) for those who pay by end of February.
• Municipal tax bill: Similar timing in most municipalities.
• School tax bill: Mailed in July, face value due by October 31, with a discount for payment by end of August (typically 2%) and penalty for payment after December 31 (typically 10%).

Delinquent tax becomes liened and is eventually sold at the annual county Upset Tax Sale (for first-time delinquency) or Judicial Sale (after upset sale fails). Pennsylvania has one of the most aggressive tax-sale systems in the country, with Upset Sale properties going to the highest bidder regardless of mortgage balance. Homeowners have a limited redemption period.

Frequently Asked Questions

What is the Common Level Ratio in Pennsylvania?

The Common Level Ratio (CLR) is the ratio of assessed values to actual market values, calculated annually by the Pennsylvania State Tax Equalization Board (STEB). It is used in property tax appeals to equalize assessments against current market conditions. Allegheny County's 2026 CLR is 50.1%, down from 54.5% in 2025 — a reduction that benefits appealing property owners.

When is the Pennsylvania property tax appeal deadline?

Deadlines vary by county. Allegheny County: September 2 of the preceding year. Philadelphia: first Monday of October. Most other counties: August 1 of the preceding year. Check your county's chief assessor or Tax Claim Bureau website for the exact date — missing the deadline forfeits appeal rights for the tax year.

How does the Pennsylvania Property Tax/Rent Rebate Program work?

The program provides state-funded rebates up to $1,000 for homeowners age 65+, widows/widowers age 50+, or disabled residents age 18+ with household income up to $45,000. Social Security income is generally excluded from the income calculation. File form PA-1000 with the Pennsylvania Department of Revenue by June 30 for the prior tax year. Higher rebates in Philadelphia, Pittsburgh, and Scranton for low-income recipients with high property tax burden.

What is the Allegheny County homestead exclusion?

Allegheny County's Act 50 homestead exclusion reduces the assessed value of an owner-occupied primary residence by $18,000 for county real property tax. Municipalities and school districts within Allegheny County may adopt additional exclusions. Apply with the county assessment office using the Homestead/Farmstead Application; the deadline for school tax relief is typically March 1.

Can I appeal my Pennsylvania property tax every year?

Yes. Pennsylvania allows annual assessment appeals by statute, regardless of whether a countywide reassessment has occurred. This is important in counties like Allegheny where no recent reassessment has taken place — the annual appeal window is the only mechanism to align assessment with current market value using the CLR.