A Homestead Exclusion provides real property tax relief to homeowners. It allows certain properties, such as your home, to receive preferential treatment under the real property tax thus reducing your taxes. The Homestead Exclusion reduces the assessed values of homestead properties thereby reducing the tax on these homes. In Allegheny County, the assessed valuation is reduced by $18,000 for qualifying properties. You can see whether or not your property currently has a Homestead Exclusion by checking the Allegheny County website real estate page, locating your property and then selecting the “General Information” tab. The column on the left will designate the school district, tax code, owner code, state code, use code and then whether or not the property has a homestead or farmstead exclusion. If a “yes” appears after “Homestead” the property currently receives a Homestead Exclusion. You will see a “Full Market Value” for that property on the left and then you will see the “County Assessed Value” on the right. The “County Assessed Value” will be $18,000 less due to the Homestead Exclusion. The “County Assessed Value” will be the value used by the County, School District and Local tax body to calculate your real estate property taxes.
For example, a property is assessed at $100,000. The Allegheny County property tax would be $473.00 per year. (Assessed Value of $100,000 multiplied by the tax rate of 0.00473 mills equals the tax owed).
If this property receives the Homestead Exclusion of $18,000 the property would receive an assessment of $82,000 ($100,000 minus $18,000) and the Allegheny County property tax would be $483.65.
(Assessed Value with the Homestead Exclusion applied of $82,000 multiplied by the tax rate of 0.00569 mills equals the tax owed).
Every property owner in Allegheny County who qualifies for the Homestead Exclusion saves $85.14 per year on Allegheny County property taxes.