Philadelphia’s 10-Year Tax Abatement: What Buyers Need to Know
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Many newer homes in Philadelphia come with a 10-year real estate tax abatement. It can lower your monthly cost significantly, but the details depend on when the home was built and when the abatement started.
What the Abatement Covers
The abatement applies to the value of the new construction or improvement, not the land. Owners still pay real estate tax on the land value during the abatement period.
Older Abatements Versus Newer Ones
Homes approved under the original program receive a full abatement on the improvement for ten years. For newer construction, City Council reformed the program so the abatement phases down over ten years, starting at 100% in the first year and dropping each year after. Which rules apply depends on the property’s permit timing.
Why the Expiration Date Matters
When an abatement ends, the tax bill can rise sharply. A home with two years left is a very different purchase than one with eight years left, even at the same price. Check the abatement start date, the years remaining and the full tax bill once it expires.
How to Check
The City of Philadelphia’s property records show assessed values and any active abatement. Max pulls this for every abated home you consider and shows you the monthly cost now and after the abatement ends.
