Tax Abatements & Exemptions in Pennsylvania

Tax Abatements and Exemptions (by Application Only)

 

Act 1 – Property Tax Relief

The Taxpayer Relief Act, Act 1, provides for property tax reduction allocations through the school districts.  Most owner-occupied homes are farms are eligible for property tax reductions. Only a primary residence is eligible for property tax relief.

More information on the Taxpayer Relief Act can be found on the Department of Education’s website (http://www.education.state.pa.us/)

 

Act 42 – City of Pittsburgh

If you purchase or build a new home in the City of Pittsburgh your city and school district taxes can be abated up to the maximum amount of $86,750 for three years.  OR If you are making home improvements to your existing home in the City of Pittsburgh you are eligible to have the first $36,900 in value abated for city and school district taxes for three years.

The property must be located in one of the approved districts or targeted growth zones

For City of Pittsburgh, a useful website is https://www.ura.org/pages/real-estate-tax-abatement-programs

 

Act 50 – Homestead Exclusion

Allegheny County property owners with primary residences here are eligible to have the property assessment value of their home reduced by $18,000 for county tax purposes only although the City of Pittsburgh School District also participates.

 

Act 7 – LERTA

In some municipalities, commercial and industrial businesses in specific areas are eligible for tax abatements.  Please contact the municipality in question to check participation and eligibility requirements.

 

Act 77 – Senior Citizen Property Tax Relief

Residents who are at least 60 years of age, have an annual income of $30,000 a year of less (counting just half of Social Security or Railroad Tier One benefits) and have lived and owned their current Allegheny County residence for at least ten years are eligible for a thirty percent reduction in their county tax bill.

Must be age 60 or older or a widow or widower age 50 to 60, or permanently disabled and age 18 to 60.

 

Act 132 – Residential Visitability Design Tax Credit Program

This program offers a tax credit as an incentive for new construction or renovation that provides access for disabled individuals into residential housing. The total amount of the tax credit granted shall be the lesser of $2500 (over a period of five years) or the total amount of all increases in property taxes levied in Allegheny County as a result of the construction/renovation eligible for the tax credit.

 

Act 156-PA – Clean and Green Program

Land in agricultural use, in agricultural reserve, and in forest reserve in Allegheny County is eligible to be assessed at the value it has for that use instead of at base year value.

 

IMPORTANT: There may be other exemptions/abatements you are entitled to. This is not meant to represent an exhaustive list. You should investigate exemptions/abatements for your particular locale.

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