Rob Hartley

Founder, AppealDesk · February 27, 2026

How Much Can Property Taxes Increase in Pennsylvania? (2026 Guide)

Updated February 2026 · 11 min read

Pennsylvania has no statewide cap on individual property tax increases. Unlike California's 2% cap or Florida's 3% Save Our Homes protection, Pennsylvania property owners face unlimited assessment increases during countywide reassessments. However, the Act 1 Index provides modest protection by limiting school tax rate increases to roughly 2-4% annually without voter approval.

If you're wondering why your Pennsylvania property tax bill jumped 15%, 30%, or even 50% after a reassessment, you're not alone. Pennsylvania's lack of assessment caps means your property value—and therefore your tax bill—can increase dramatically in a single year. The good news? You have the right to appeal, and many Pennsylvania property owners successfully challenge inflated assessments.

The Bottom Line: No Assessment Cap, Limited Rate Protection

Here's what actually limits property tax increases in Pennsylvania:

• No cap on individual assessments: Your property's assessed value can increase by any amount during a countywide reassessment.
• Act 1 Index limits school tax rates: School districts (which typically account for 60-70% of your property tax bill) can only raise rates by the annual index (usually 2-4%) without voter approval.
• County and municipal taxes are uncapped: Local governments have broad authority to raise tax rates as needed, with limited statutory restrictions.
• Reassessment revenue neutrality (initially): During countywide reassessments, tax rates must be adjusted so total revenue collected doesn't increase—but this doesn't protect individual properties from large increases.

Translation: Pennsylvania relies on tax rate limits for schools and revenue neutrality rules during reassessments to provide modest protection. But if your property's value increases faster than your neighbors', your bill can skyrocket even if tax rates don't change.

Understanding the Act 1 Index

The Act 1 Index, established by the 2006 Taxpayer Relief Act, is Pennsylvania's primary property tax control mechanism—but it only applies to school districts, which represent the largest portion of most property tax bills.

How the Act 1 Index Works

• Annual inflation-based limit: Calculated using the Employment Cost Index (ECI), the Act 1 Index typically ranges from 2% to 4% annually.
• Applies to school tax rates only: County and municipal taxes are not subject to the index.
• Exceptions allowed: School districts can exceed the index for special education costs, pension obligations, debt service, or grandfathered projects—without voter approval.
• Referendum required otherwise: To exceed the index beyond approved exceptions, school districts must hold a voter referendum.

Example: If the Act 1 Index is 3.5% for 2026, a school district with a current millage rate of 25 mills can raise it to 25.875 mills without voter approval—assuming no exceptions apply.

The Act 1 Index Doesn't Protect Your Individual Bill

Here's the critical distinction: The Act 1 Index limits how much tax rates can increase, not how much your individual bill increases. If your property's assessed value jumps 30% during a reassessment, your tax bill will increase by roughly 30%—even if tax rates don't change at all.

Real-world scenario:

• Your home was assessed at $200,000 in 2020
• School tax rate: 25 mills (2.5%)
• Your 2020 school tax: $5,000
• 2025 reassessment increases your home to $280,000 (+40%)
• School tax rate stays at 25 mills (within Act 1 limits)
• Your 2025 school tax: $7,000 (+40%, or $2,000 more)

The Act 1 Index provided zero protection in this scenario because your assessment increased, not the tax rate.

How Pennsylvania Countywide Reassessments Work

Pennsylvania counties conduct reassessments sporadically—some haven't reassessed in decades, while others reassess every few years. When a countywide reassessment occurs, here's what happens:

Revenue Neutrality Requirement

Under Pennsylvania Title 53, Section 8823, taxing districts must adjust their millage rates during reassessments so that total revenue collected doesn't increase in the first year.

How this works:

1. County revalues all properties to current market value
2. Total assessed value across the county increases significantly
3. Tax rates (millage) are reduced proportionally to keep total revenue flat
4. Individual property owners see their bills increase or decrease based on how their property's value changed relative to the county average

Key insight: Revenue neutrality protects the aggregate tax base, not individual properties. If your home's value increased more than the county average, your bill will increase—potentially by a lot.

Winners and Losers in Reassessments

Tax bills increase for:

• Properties in gentrifying neighborhoods
• Homes with significant improvements (additions, renovations)
• Properties previously underassessed relative to market value
• Areas experiencing rapid appreciation

Tax bills decrease for:

• Properties in declining neighborhoods
• Homes that were previously overassessed
• Properties whose values grew slower than the county average

In practice, reassessments create winners and losers. Even if you didn't change anything about your home, you could face a massive tax increase simply because your neighborhood appreciated faster than others.

County and Municipal Taxes: Even Less Protection

While school taxes are subject to the Act 1 Index, county and municipal property taxes have virtually no statutory caps in most Pennsylvania jurisdictions.

• Counties: Can raise millage rates as needed to fund operations, with limited restrictions under county home rule charters.
• Municipalities: Second-class and third-class cities have some statutory limits (e.g., maximum millage rates), but these vary widely and are often high enough to provide minimal protection.
• Special districts: School districts, fire districts, and other special purpose entities have their own rules—some with voter approval requirements, others with none.

In practice, county and municipal taxes usually represent 20-30% of your total property tax bill, but they can increase significantly year-over-year if local governments face budget pressures.

Real-World Examples: How Much Can PA Property Taxes Increase?

Example 1: Philadelphia Reassessment (2023-2024)

Philadelphia conducted a citywide reassessment in 2023, the first since 2019. Many properties saw dramatic increases:

• Median home: Assessed value increased ~10-15%
• Gentrifying neighborhoods (Fishtown, Point Breeze): Assessed value increases of 30-50%
• Tax rate adjustment: City reduced millage rate from 1.3998% to 1.3998% (minimal change due to revenue needs)
• Result: Many homeowners saw tax bills increase 15-40%, with some extreme cases exceeding 50%

Because Philadelphia is a first-class city with home rule, it isn't subject to typical statutory rate limits. The lack of assessment caps meant property owners in hot neighborhoods faced massive increases with limited recourse beyond appealing their assessments.

Example 2: Allegheny County Reassessment (2022)

Allegheny County (Pittsburgh) conducted a countywide reassessment in 2022 after years of stale data. Results were mixed:

• Urban Pittsburgh neighborhoods: Many saw 20-40% assessment increases
• Suburban and rural areas: Some saw decreases or minimal increases
• Tax rate adjustment: Rates were reduced to maintain revenue neutrality, but not enough to offset assessment increases in hot markets
• Appeals: Over 40,000 property owners filed appeals—one of the highest rates in state history

Example 3: Stable Millage with Modest Assessment Growth (Lancaster County)

In counties without recent reassessments, property tax increases tend to be more predictable:

• Annual assessment increases: Typically 0-3% for existing properties (no reassessment)
• School tax rate increases: Limited to Act 1 Index (2-4% annually)
• Result: Total tax bill increases of 2-6% per year are common—far more predictable than reassessment years

This illustrates why reassessments are so disruptive in Pennsylvania: Between reassessments, tax increases are modest. During reassessments, bills can jump dramatically in a single year.

Homestead and Farmstead Exclusions: Modest Relief

Pennsylvania's Homestead and Farmstead Exclusion Program (also from Act 1 of 2006) provides a flat dollar reduction on school property taxes for primary residences and working farms.

How It Works

• Flat dollar exclusion: Each county sets an exclusion amount (e.g., $15,000-$50,000) applied to your home's assessed value before calculating school taxes.
• Applies to school taxes only: Does not reduce county or municipal taxes.
• Primary residence only: Must be your permanent home (no second homes or investment properties).
• Application required: You must apply with your county assessor—it's not automatic.

Example:

• Your home is assessed at $250,000
• County homestead exclusion: $30,000
• School taxes calculated on: $220,000 ($250,000 - $30,000)
• School tax rate: 25 mills (2.5%)
• School tax owed: $5,500 instead of $6,250 (saves $750/year)

While helpful, the homestead exclusion provides only modest relief and does nothing to cap future assessment increases. If your home's value jumps 40% in a reassessment, your tax bill will still increase dramatically even with the exclusion.

When Should You Appeal Your Pennsylvania Property Tax Assessment?

Given Pennsylvania's lack of assessment caps, appealing your assessment is often the only way to limit property tax increases. You should strongly consider appealing if:

• Your assessment increased significantly during a reassessment (15% or more)
• Your assessed value exceeds recent sale prices of comparable homes in your neighborhood
• Your home has defects or damage not reflected in the assessment (foundation issues, water damage, etc.)
• Comparable properties are assessed lower than yours despite being similar in size, age, and condition
• Your neighborhood has declining property values but assessments haven't adjusted

Pennsylvania Appeal Deadlines

Pennsylvania appeal deadlines vary by county and situation:

• Regular appeals: Typically due by August 1 or within 40 days of receiving your assessment notice
• Reassessment year appeals: Extended deadlines often apply (check with your county)
• Informal reviews: Many counties offer informal review periods before formal appeals—take advantage of these

Pennsylvania's appeal process is county-specific and can be complex. Many property owners benefit from professional help, especially during reassessment years when appeals flood the system.

Comparing Pennsylvania to Other States

How does Pennsylvania's lack of assessment caps compare to other states?

Pennsylvania ranks among the weakest states for property tax protection. Only New York and a handful of other states offer similarly limited safeguards. Compare this to California's Prop 13, which caps assessments at 2% annually, or Florida's Save Our Homes, which caps homestead assessments at 3%.

Pennsylvania Property Tax Rates: Among the Highest in the Nation

Pennsylvania's weak assessment caps contribute to another problem: some of the highest property tax rates in the United States.

• Median effective property tax rate: ~1.50% (national average: 0.99%)
• Highest rates: School District of Philadelphia (4.1%), Allegheny County suburbs (3-4%), Monroe County (2.5-3%)
• Lowest rates: Rural counties in central PA (1.0-1.5%)

Because Pennsylvania relies heavily on property taxes to fund schools (60-70% of property taxes go to schools), and because there are no assessment caps to restrain growth, homeowners face both high rates and unlimited increases during reassessments.

What Can Pennsylvania Property Owners Do?

Given Pennsylvania's weak protections, here's how to manage property tax increases:

1. Appeal Your Assessment (Especially During Reassessments)

Appealing is your most powerful tool. Pennsylvania property owners who appeal successfully reduce their assessments by 10-30% on average, translating to $500-$2,000+ in annual savings.

• Gather comparable sales data (recent sales of similar homes in your area)
• Document property defects or issues
• Consider hiring a professional (many work on contingency—no savings, no fee)

2. Apply for Homestead and Farmstead Exclusions

If you haven't already, apply for the homestead exclusion with your county assessor. It typically saves $300-$1,000 per year on school taxes.

3. Monitor School District Budgets

Attend school board meetings and vote on referendums. While you can't control assessments, you can influence tax rates by participating in local government.

4. Consider Senior/Disability Programs

Pennsylvania offers additional relief for seniors and disabled homeowners:

• Property Tax/Rent Rebate Program: Up to $1,000 rebate for seniors 65+ and disabled individuals
• Local senior freezes: Some municipalities offer assessment freezes for seniors (rare but worth checking)

5. Plan for Reassessments

If your county is overdue for a reassessment (10+ years since the last one), start planning now:

• Research comparable sales in your neighborhood
• Document any property issues or defects
• Set aside savings for potential tax increases
• Be prepared to appeal immediately when reassessment notices arrive

The Bigger Picture: Pennsylvania's Property Tax Problem

Pennsylvania's lack of assessment caps is part of a broader property tax crisis. The state relies more heavily on property taxes than almost any other state, yet provides fewer protections for homeowners.

Key issues:

• Over-reliance on property taxes: Pennsylvania funds schools almost entirely through local property taxes, creating massive rate disparities between wealthy and poor districts.
• Infrequent reassessments: Many counties go decades without reassessing, leading to massive "sticker shock" when reassessments finally occur.
• No statewide standards: Each county sets its own assessment practices, appeal procedures, and timelines—creating confusion and inconsistency.
• Political gridlock: Proposals for property tax reform (including caps) have repeatedly failed in the state legislature due to concerns about shifting tax burdens or reducing revenue for schools.

Until Pennsylvania enacts meaningful property tax reform—whether through assessment caps, expanded homestead exclusions, or alternative school funding mechanisms—homeowners will continue to face unlimited tax increases during reassessments.

Frequently Asked Questions

Does Pennsylvania have a property tax freeze for seniors?

Pennsylvania does not have a statewide property tax freeze for seniors. However, the Property Tax/Rent Rebate Program provides up to $1,000 in rebates for seniors 65+ and disabled homeowners with income below $35,000 (higher limits for some categories). Some individual municipalities offer local senior freezes—check with your county or city.

Can Pennsylvania school taxes increase every year?

Yes, but increases are limited by the Act 1 Index (typically 2-4% annually) unless voters approve higher increases or the district qualifies for exceptions (special education costs, pensions, debt service). Your individual bill can increase more if your property's assessed value increases during a reassessment.

How often does Pennsylvania reassess property?

Reassessment frequency varies by county. Some counties reassess every 3-5 years (e.g., Philadelphia), while others haven't reassessed in 20+ years. Pennsylvania law doesn't mandate regular reassessments, leading to outdated assessments in many counties—which then causes massive tax increases when reassessments finally occur.

Can I appeal my Pennsylvania property taxes every year?

You can file a formal appeal once per year (or once per assessment period, depending on county rules). However, most successful appeals occur during or shortly after reassessments, when property values are most likely to be inaccurate. Appeals based solely on "my taxes are too high" rarely succeed—you need evidence that your assessment (not your tax rate) is incorrect.

What happens if I don't pay my property taxes in Pennsylvania?

Pennsylvania allows property tax liens to be sold to private investors after delinquency. If you don't pay, the taxing authority can place a lien on your property and eventually foreclose. Unlike some states, Pennsylvania's tax sale system can be aggressive—don't ignore property tax bills.

Final Thoughts: Appeal Is Your Best Defense

Pennsylvania's lack of assessment caps places the burden on homeowners to protect themselves. Unlike California, Florida, or Texas homeowners who benefit from constitutional caps, Pennsylvania property owners must actively monitor their assessments and appeal when appropriate.

The average successful appeal in Pennsylvania reduces assessments by 10-20%, saving homeowners $800-$1,500 per year. Over a decade, that's $8,000-$15,000+ in savings—enough to justify the time and effort required to appeal.

If your property tax bill increased significantly after a recent reassessment, don't assume it's accurate. Get a professional assessment review, gather comparable sales data, and file an appeal. In Pennsylvania, it's often the only way to keep your property taxes under control.