Does anyone understand what happens if you apply for the homestead exemption and how that works with the tax bill? Specifically…

Submitted by Mikeh1982 t3_y87g0v in philadelphia

On the city’s website, it says:

“The final deadline to apply for the Homestead Exemption is December 1 of each year. Early filers should apply by September 13, to see approval reflected on their Real Estate Tax bill for the following year. Applicants approved after September 13 date will receive a second bill with an adjusted amount due.”

If I apply now, since I missed the 9/13 early date…what will be the difference for me?

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timbrelyn t1_isz2i5r wrote

Apply for it asap because you will save a ton of money on your property tax bill. This year they increased the Homeowners exemption from 45,0000 to 80,0000. Which means if you house is assessed by the city at 280,000 and you get approved for Homeowners exemption your house will only get taxed on
200,000 instead of 280,000 and that could save you several thousand dollars in property taxes you won’t have to pay.

As long as you apply by Dec 1st if you get approved you will get the tax savings for this year (2022).

DO IT! There is no negative here unless you don’t actually live in the house you own. If you rent it out to someone else then you won’t qualify for the Homestead Exemption. If you don’t apply you are essentially throwing away money.

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Brahette t1_isz2t7p wrote

FWIW I applied for the exemption in July and it still hasn't been approved yet

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beancounter2885 t1_iszd2e9 wrote

Replying to Brahette (#145,806)

The approval seems to me like it's retroactive. I applied last May, got approved around October, and in February, my mortgage company sent me $800 from over payment of taxes due to my homestead exemption.

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liquidbluenight t1_iszlo09 wrote

To be clear, you only have to apply once, not every year. Once you’re approved, you have the exemption until you sell or it’s no longer your primary residence (i.e., if you rent it out).

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crazy-puff t1_it2c0mr wrote

Replying to Brahette (#145,806)

It will happen. I applied in January after I moved here and it wasn’t approved until late fall of that year. I called the office to check in a couple times and they would just reassure me they still had my application and to be patient.

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