Millage rates, reassessment and the homestead exclusion — what actually drives your tax bill, and why two homes a few miles apart can cost very different amounts.
Pennsylvania property taxes are calculated by multiplying your home's assessed value by the combined millage rates of your county, municipality and school district, with the school district usually making up the largest share.
Millage rates can't be compared across counties because each county assesses homes against a different base year. Lehigh County assessments sit at about 47% of today's market value, while Northampton County's sit closer to 16%.
Homeowners should file for the homestead exclusion with their county by March 1 to lower their school taxes, and seniors and people with disabilities may also qualify for a state rebate of up to $1,000.
Property taxes can change your monthly payment by hundreds of dollars from one town to the next, so they're worth comparing early. Our Lehigh Valley community guides, including Center Valley, help you weigh location, schools and cost together.
~47%
Lehigh County assessments vs. market value
~16%
Northampton County assessments vs. market value
March 1
Homestead exclusion filing deadline
Source: State Tax Equalization Board common level ratios, July 2026 through June 2027.
Most Pennsylvania homeowners get property tax bills from three places: the county, the municipality (your city, borough or township) and the school district. Each one sets its own rate.
The school district is almost always the biggest piece. In many Lehigh Valley towns, school taxes make up the large majority of the total bill. That's why two homes with the same price can have very different tax bills just a few miles apart.
Sets its own rate based on the county's base year and budget.
Your city, borough or township, with its own separate millage.
Usually the largest share of the bill, and the biggest variable town to town.
Pennsylvania doesn't have a statewide property tax. Everything is local, which is exactly why it pays to understand how your specific area works before you buy.
Property tax rates in Pennsylvania are expressed in mills. One mill equals $1 of tax for every $1,000 of assessed value. The basic formula looks like this:
The Formula
Assessed value × total millage ÷ 1,000 = annual property tax
Say a home in Lehigh County has an assessed value of $180,000. The county rate for 2026 is 3.78 mills, which works out to about $680 for the county portion alone. Add the municipal and school district rates, and you have the full bill.
Here's the part that trips up buyers. The assessed value is usually not the price you pay for the house. It's a number the county set based on an older base year, and that's where things get interesting.
Pennsylvania doesn't require counties to reassess on a regular schedule. Each county values every home as of its own base year, and those years can be decades apart.
Lehigh County last reassessed in 2013. Northampton County still assesses on a much older base year. To compare them fairly, the State Tax Equalization Board publishes a common level ratio (CLR) for each county every year. It shows roughly how assessed values compare with current market values.
| County | Assessments vs. Market Value |
|---|---|
| Lehigh County | ~47% |
| Berks County | ~32% |
| Northampton County | ~16% |
Source: State Tax Equalization Board common level ratios, July 2026 through June 2027.
That's why millage rates can look wildly different. The Saucon Valley School District, in Northampton County, has a millage of about 55.2. The Southern Lehigh School District, in Lehigh County, sits around 17.7. On paper, that looks like a huge gap.
Saucon Valley SD (Northampton)
55.2
millage rate
Southern Lehigh SD (Lehigh)
17.7
millage rate
Adjust for the CLR, though, and the picture changes. Both work out to a school tax of a little under 1% of market value, and on a $400,000 home the estimated school bills land within a few hundred dollars of each other.
The lesson? Never judge a town's taxes by millage alone. Ask your agent for the actual tax bill on any home you're considering.
Our Lehigh Valley school district guide compares rankings and millage across the region if you're weighing schools and taxes together.
Because counties rarely reassess, your assessment usually stays the same year after year unless you make improvements that require permits. That keeps things predictable, but it also means some homes end up assessed higher or lower than they should be compared with the rest of the county.
If you believe your assessment is too high, you can file an appeal with your county assessment board. Most counties accept annual appeals by August 1 for the following tax year, though a few set different dates. The board compares your home's market value, adjusted by the CLR, with your current assessment.
August 1
Typical appeal deadline for the following tax year
Comparable sales
The evidence you'll typically need to support an appeal
In Pennsylvania, some school districts file appeals on recently sold homes when the sale price suggests the assessment is too low. It doesn't happen everywhere, but it's worth factoring into your budget, especially if you're paying well above what similar homes nearby are assessed for.
This is the easiest property tax savings in Pennsylvania, and plenty of new homeowners miss it. Under the state's Taxpayer Relief Act, school districts use state gaming revenue to reduce school taxes on primary residences. That reduction is called the homestead exclusion.
File a one-page application
Submit it to your county assessment office.
Beat the March 1 deadline
That's the cutoff for the following tax year. If you close in the fall, filing right away means you could see the savings on your next school tax bill. Miss the date and you wait another year.
Apply once
You only need to apply once as long as you live in the home. Some counties occasionally send out a form to confirm you still qualify, so watch your mail.
A few hundred / year
Typical savings, varies by district
Primary residence
Only applies to your main home
March 1
Filing deadline each year
A few other programs are worth knowing about:
Homeowners 65 and older, widows and widowers 50 and older and people with disabilities may get up to $1,000 back each year. The income limit for the 2025 claim year was $48,110, and only half of Social Security income counts toward it.
Veterans with a 100% service-connected disability rating who meet the financial need test may qualify for a full exemption on their home.
Some municipalities and school districts offer their own relief or payment plans, so ask your tax collector.
Pennsylvania property taxes don't come in one bill. County and municipal taxes usually arrive in early spring. School taxes typically arrive in summer, since most school districts run on a July through June fiscal year.
Early Spring
County & municipal bills
Summer
School district bills
2% off / 10% penalty
Typical early discount & late fee
Many tax collectors offer a 2% discount for paying early and add a 10% penalty for paying late, so pay attention to the dates on each bill. If your mortgage has an escrow account, your lender pays these for you.
At closing, taxes are prorated between buyer and seller. If the seller has already paid the school taxes for the year, you'll reimburse them for the months you'll own the home. It's one of the line items that surprises buyers on their closing statement, so plan for it.
Property taxes are one of the biggest ongoing costs of owning a home, and in Pennsylvania they can vary a lot from one street to the next. The Chris Troxell Team pulls actual tax bills on every home you're considering, explains what's driving the number and reminds you to file for the homestead exclusion after closing.
Explore our buyer resources and our community guides to compare towns. When you're ready to talk numbers, we'll take it from there.