Here’s how Philadelphia homeowners can apply for the city’s low-income real estate tax freeze program

Philadelphia homeowners have the opportunity to apply for the city’s Low-income Real Estate Tax Freeze program (LITX) by Feb. 28 if they want their 2025 property tax bill to look the same as 2024’s.

Under the program, created by legislation from Philadelphia City Councilmember Jamie Gauthier, eligible homeowners will not see increases in their property tax each year even if there are changes to the property assessment or tax rate. Homeowners’ property tax bill can be reduced if their property assessment or tax rate decreases, however.

Gauthier introduced the legislation in response to the anxiety and frustration her constituents felt after the city’s property assessments last year. This is the first year for the program after the legislation was passed by Philadelphia City Council in June and applications opened in September 2024.

The bill had been introduced in a previous session by then-Councilmember Cherelle L. Parker on behalf of former Council President Darrell L. Clarke.

In 2022, former Pennsylvania Gov. Tom Wolf signed Act 58 of 2022, introduced by State Rep. Jared Solomon (D., Philadelphia) into law. The bill allows local tax authorities to refund or forgive real estate taxes for low-income taxpayers. Gauthier’s bill activated Act 58 locally.

The city released new property assessments in August 2024 for the first time since 2022. Property values increased by 11% citywide as lower-income, majority neighborhoods of color were especially impacted, according to an Inquirer analysis.

“I saw the dramatic increases that happened with people’s assessments, and, therefore, knew that people would be facing property tax bills, some of our most vulnerable homeowners would be facing property tax bills that they can’t afford,” Gauthier said Thursday. “And I am strongly against the city acting as an agent of displacement.”

Typically the deadline to apply for LITX will be Jan. 31 of each year, but the city extended it to Feb. 28 for 2025 taxes. Here’s what to know about applying.

To enroll in the program, homeowners must meet various criteria as outlined on the city’s website and on the application form.

Eligible applicants cannot exceed a total yearly gross income of $33,500 for a single person or $41,500 for a married couple, according to the city. Applicants will be required to submit proof of income, identity, and residency.

The program is only for individuals who own and live in their own property, according to the application. Philadelphians who live in another property or claim another property as a primary residence are not eligible.

Philadelphia residents are allowed to apply for LITX if they live in cooperative housing or part of their home is rented or used for business purposes.

Carrie Rathmann, vice president of strategic partnerships at Habitat for Humanity Philadelphia, said the program is a “tool in the toolbox” that would help many of the low-income residents the organization serves, especially in neighborhoods in North Philadelphia, West Philadelphia, and Southwest Philadelphia, though she is not aware of many Habitat clients who are intending to enroll.

“There’s a potential for people not to be able to stay in their home because of the tax burden,” Rathmann said. “So if you think about how integral being able to pay your taxes is to staying in your home and maintaining your home with the stress of being able to keep that largest financial asset, yeah, I think there’s a lot of connection to well-being.”

Philadelphia homeowners who believe they’re eligible can apply for the program online or through a paper application found on the city’s website.

The city says applying online via the “search for a property link” under the “property” panel on the Philadelphia Tax Center website is the “fastest and easiest way to apply.”

Residents can also complete and mail the paper application or complete and return it in person at the Department of Revenue at the Municipal Services Building at 1401 John F. Kennedy Blvd. or the Northeast Municipal Services Center at 7522 Castor Ave.

A representative from the Department of Revenue reviews all applications and if criteria are met, the homeowner will be entered into the program and receive a decision letter and a new bill with the new amount due, said Christian Crespo, a spokesperson for the department.

As of Jan. 23, 1,668 out of roughly 62,000 eligible homeowners were approved for the program, Gauthier said. That’s on par with other tax-relief programs, she added, but it highlights opportunities for the city at large to consider improved advertising for LITX and adding automatic enrollment for the tax-freeze program.

“Revenue has always sort of pushed back against this idea of automatic enrollment, saying that there are obstacles to getting there, but I think it is something that is worth it. I have confidence that we can figure it out,” Gauthier said.

Philadelphia’s Department of Revenue did not immediately comment as to whether the city would consider automatic enrollment from LITX in the future.

Residents enrolled in the program can estimate how much their tax bill will be by using the city’s property search website and following the corresponding instructions.

A homeowner’s bill will freeze to the previous year’s amount. For example, this year’s applicants will have their bill frozen to 2024’s amount. If a resident has a real estate tax balance from a previous year, it will adjust to the new frozen amount, but they are not eligible for a refund for real estate taxes paid in previous years.

The city also offers other tax-assistance programs for homeowners, including the Homestead Exemption, which reduces the taxable allotment of a property’s assessed value and can be used in conjunction with the tax freeze.

Homeowners whose property assessments increased by at least 50% over the last year or 75% over the last five years may be eligible for the real estate tax-relief program Longtime Owner Occupants Program (LOOP).

And under the senior citizen real estate tax-freeze program, the Department of Revenue will prevent property taxes from increasing for individuals who meet certain age and financial requirements.