13,000 Philly homeowners have been kicked off tax break programs that they weren’t eligible for

More than 13,000 Philadelphia homeowners were receiving assistance on their property taxes from the city despite not being eligible, according to city officials who conducted a review of thousands of properties to identify people fraudulently receiving tax breaks.

Those homeowners — most of whom received the popular homestead exemption that can save owners an average of $1,400 a year — have been kicked off the programs, officials said Wednesday. And they will be charged back taxes, in some cases dating back multiple years, resulting in $33.5 million in additional revenue for the city and the Philadelphia School District.

That is welcome news for the cash-strapped public school system, which is facing a $300 million structural deficit and is the only district in Pennsylvania that cannot legally raise taxes on its own.

Instead, the district receives 56% of property tax revenue, with the remainder going into the city’s coffers. The current property tax rate is 1.3998% of assessed value, which has not changed for nearly a decade.

Last month, the city released new property assessments that resulted in a 3% median increase in valuations from the 2025 tax year, the last time there was a mass reassessment.

» READ MORE: Property values in Kensington went up more than any other Philly neighborhood this year

Philadelphia has a variety of property tax relief programs that are intended to help homeowners weather changes in valuations and avoid displacement. The most popular is the homestead exemption, which exempts the first $100,000 in home value from property taxes. Only homeowners who live in their house as their primary residence are eligible.

That means that, in some cases, homeowners are eligible to receive the exemption while they live in their homes, but no longer qualify if they move and rent out their space.

» READ MORE: Confused by Philly’s property tax relief programs? Use this new tool to see which you’re eligible for.

In 2024, Mayor Cherelle L. Parker’s administration launched a review to identify properties that might no longer meet the eligibility requirements. According to a news release, the Philadelphia Revenue Department reviewed about 22,000 tax accounts, or less than 10% of all the households enrolled in the homestead exemption.

Christian Crespo, a spokesperson for the department, said officials used a variety of data indicators to identify those properties that were up for review. For example, he said, some property owners were claiming homestead benefits at multiple properties.

As a result of the investigation, 13,355 homeowners were removed from a property tax assistance program. There are several other tax breaks for homeowners that are targeted toward low-income people and seniors, but most of those removed were improperly receiving the homestead exemption.

Homeowners were sent two notices and given 60 days to prove their eligibility before they were kicked off an assistance program. They may still appeal the decision.

“We want eligible homeowners to get the relief they deserve,” Revenue Commissioner Kathleen McColgan said in a statement. “These compliance projects help ensure that program participation is accurate, fair, and accessible to residents who truly qualify.”