How to Get the Homestead Exclusion in Pennsylvania: Step-by-Step Guide
The Homestead Exclusion is Pennsylvania’s primary property tax relief program for homeowners, and it’s free money that many property owners leave on the table. Use our property tax calculator for detailed numbers. The program reduces the assessed value of your primary residence for school district property tax purposes, saving most homeowners $200–$600 per year. It’s funded by revenue from the state’s casino gaming industry, distributed to school districts that have adopted the exclusion. The catch: you must apply. It’s not automatic, and the county won’t send you a reminder.
This guide explains exactly how to apply, what you’ll need, and how much you can expect to save.
What the Homestead Exclusion Does
The Homestead Exclusion reduces the assessed value of your primary residence for the purpose of calculating school district property taxes. It does not affect county or municipal taxes — only the school district portion of your bill (which is typically 55–65% of your total property tax).
| Factor | Details |
|---|---|
| What’s Reduced | Assessed value for school district taxes only |
| How Much | Varies by school district — typically $5,000–$50,000 off assessed value |
| Annual Savings | $200–$600 for most homeowners |
| Funded By | State gaming revenue (Act 1 of 2006) |
| Who Qualifies | Owner-occupants of primary residence |
| Cost to Apply | Free |
The exclusion amount varies by school district because each district receives a different allocation of gaming funds based on its tax base and student population. Some districts exclude more assessed value than others. The actual dollar savings depend on your district’s exclusion amount and millage rate.
Who Qualifies
You qualify for the Homestead Exclusion if you meet all of these criteria:
- You own the property. Your name must be on the deed as recorded with the county Recorder of Deeds.
- The property is your primary residence. You must actually live there for the majority of the year. Second homes, investment properties, and vacation homes do not qualify.
- The property is a dwelling. Houses, condos, townhomes, co-ops, and mobile homes on owned land all qualify. The dwelling portion of a mixed-use property (like a home with a ground-floor commercial space) qualifies for the residential portion.
- You occupy the property as of the application date. You can’t apply for a home you haven’t moved into yet.
Properties that do NOT qualify:
- Rental properties and investment properties
- Second homes and vacation homes
- Commercial properties
- Vacant land without a dwelling
- Properties owned by corporations, LLCs, or trusts (with some exceptions for revocable living trusts where the owner is the trustee and occupant)
Step-by-Step Application Process
Step 1: Get the Application Form
Contact your county assessment office or visit their website. Most counties have the Homestead Exclusion application available for download. The form is typically 1–2 pages. Some counties use the state’s standard form; others have their own version. Common names for the form include “Homestead Exclusion Application” or “Property Tax Reduction Allocation Application.”
| County | Where to Get the Form | Phone Number |
|---|---|---|
| Philadelphia | Office of Property Assessment (OPA) website | (215) 686-9200 |
| Allegheny | Office of Property Assessments website | (412) 350-4636 |
| Montgomery | Board of Assessment Appeals website | (610) 278-3761 |
| Delaware | Board of Assessment Appeals website | (610) 891-4273 |
| Chester | Board of Assessment website | (610) 344-6105 |
| Lancaster | Assessment Office website | (717) 299-8381 |
| Lehigh | Assessment Office website | (610) 782-3038 |
Step 2: Complete the Form
The application requires basic information:
- Your name and the property address
- The parcel number or tax account number (found on your tax bill)
- Confirmation that the property is your primary residence
- Your Social Security Number (required by most counties for verification)
- Your signature and date
Step 3: Submit Supporting Documents
Most counties require one or more of the following to verify residency:
- A copy of your PA driver’s license or state ID showing the property address
- Voter registration at the property address
- Vehicle registration showing the property address
- A copy of your most recent federal tax return showing the property address (some counties)
Step 4: Submit by the Deadline
Deadlines vary by county — most are in the March–May window, but some are later. Check your specific county’s deadline. If you miss the deadline, you’ll need to wait until the next filing period. Applications are typically accepted:
- By mail to the county assessment office
- In person at the assessment office
- Online (in counties that offer electronic filing — increasingly common)
Step 5: Confirmation and Ongoing Renewal
Once approved, the exclusion remains in effect as long as you continue to own and occupy the property. You do not need to re-apply annually in most counties. However, if you sell the home, move out, or convert it to a rental, the exclusion terminates. The new owner must file their own application.
How Much Will You Save?
| County | Typical Exclusion Amount | Approximate Annual Savings |
|---|---|---|
| Philadelphia | $100,000 off assessed value | $1,119 (Homestead Exemption) |
| Allegheny | $18,000 off assessed value | $179 |
| Montgomery | Varies by district | $200–$400 |
| Chester | Varies by district | $250–$500 |
| Lancaster | Varies by district | $200–$400 |
| Lehigh | Varies by district | $250–$450 |
| Bucks | Varies by district | $200–$400 |
Philadelphia’s Homestead Exemption is the most generous because the city combines state gaming revenue with its own property tax relief programs. The $100,000 assessed value reduction saves approximately $1,119 per year at the current millage rate. Outside of Philadelphia, savings are more modest but still meaningful — $200–$500 per year adds up to $2,000–$5,000 over a decade of homeownership.
Factor these savings into your overall housing budget with our mortgage calculator. For a deeper understanding of PA property taxes, read our property tax explainer.
Common Mistakes to Avoid
- Not applying at all. This is the biggest mistake. The exclusion is not automatic — you must file the application. Many Pennsylvania homeowners pay hundreds more per year simply because they never applied.
- Forgetting to apply after buying. New homeowners should apply within the first few months of ownership. The seller’s Homestead Exclusion does not transfer to the buyer — you must file your own application.
- Applying for multiple properties. You can only claim the Homestead Exclusion on one property — your primary residence. Applying for multiple properties constitutes fraud.
- Not updating after address change. If you move to a new home within PA, you need to apply again for the new property. The exclusion from your previous home doesn’t automatically transfer.
- LLC/trust ownership confusion. If your home is owned by an LLC or trust, eligibility depends on the specific structure. Revocable living trusts where you’re the trustee and occupant typically qualify, but LLCs used for asset protection may not. Check with your county assessment office.
Homestead Exclusion vs. Other PA Tax Relief Programs
| Program | Who Qualifies | Benefit | Automatic? |
|---|---|---|---|
| Homestead Exclusion | All owner-occupants | $200–$600/yr savings (varies) | No — must apply |
| Property Tax/Rent Rebate | Seniors 65+, disabled, widows/widowers 50+ | Up to $1,000 rebate | No — annual application |
| Disabled Veterans Exemption | 100% service-connected disabled vets | Full property tax exemption | No — must apply |
| Farmstead Exclusion | Qualifying farm buildings | Varies by district | No — must apply |
The Homestead Exclusion can be combined with other programs. A senior homeowner who qualifies for both the Homestead Exclusion and the Property Tax/Rent Rebate could save $800–$1,600 per year in combined benefits. If you think you might also qualify for the Property Tax/Rent Rebate, check the PA Department of Revenue website for income limits and application forms.
Veterans should pay particular attention to the Disabled Veterans Exemption. If you have a 100% service-connected disability rating from the VA, you may qualify for a complete property tax exemption on your primary residence — saving $3,000–$8,000+ per year depending on your location. This is one of the most generous veterans’ property tax benefits in the country. The application goes through your county Board of Assessment, and you’ll need documentation from the VA confirming your disability rating. The exemption covers all three components of your property tax bill: county, municipal, and school district taxes.
Learn more about PA property taxes in our property tax cost guide and appeal guide. Budget your purchase with our closing cost calculator.
Compare With Other States
Considering other markets? Here’s how other states compare:
- How to Appeal Your Property Tax in Georgia: Step-by-Step Guide
- How to Appeal Your Property Tax in Nevada: Step-by-Step Guide
- How to Appeal Your Property Tax in Utah: Step-by-Step Guide
Frequently Asked Questions
What is the Homestead Exclusion in Pennsylvania?
The Homestead Exclusion reduces the assessed value of your primary residence for school district property tax purposes. It’s funded by state gaming revenue and available to all owner-occupied homes. Savings range from $200–$600 per year in most counties, with Philadelphia offering the largest benefit (approximately $1,119/year). You must apply — it’s not automatic.
How do I apply for the Homestead Exclusion?
Contact your county assessment office or download the application from their website. Complete the form with your property information and proof of residency (PA driver’s license, voter registration). Submit by your county’s deadline. Once approved, the exclusion remains in effect until you sell or move.
Do I need to reapply every year?
No. Once approved, the Homestead Exclusion continues automatically as long as you own and live in the property. You only need to re-apply if you buy a different home. The exclusion does not transfer from a previous owner — new buyers must file their own application.
Can I get the Homestead Exclusion on a rental property?
No. The Homestead Exclusion applies only to owner-occupied primary residences. Investment properties, rental properties, second homes, and vacation homes do not qualify. If you convert your primary residence to a rental, you must notify the county and the exclusion will be removed.
What’s the deadline to apply?
Deadlines vary by county — typically March through May, but some counties have later deadlines. Philadelphia accepts applications year-round, while Allegheny County sets a March 1 deadline for the following tax year. Montgomery County’s deadline typically falls in May. Check your county assessment office for the exact date. If you miss the deadline, you’ll need to wait until the next filing period. New homebuyers should apply as soon as possible after closing to avoid missing the current year’s deadline — putting the application on your post-closing checklist alongside utility transfers and address changes ensures you don’t forget.