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Property Tax Deduction in Philadelphia, PA 2026

Calculate your property tax deduction tax savings in Philadelphia, Pennsylvania. With Pennsylvania's 3.07% state tax rate, your combined savings are higher.

Pennsylvania Tax Context

State Income Tax
3.07%
Local Income Tax
3.75%
Property Tax Rate
1.36%
Tax Burden
High

Philadelphia city wage tax: 3.75% residents, 3.44% non-residents; high combined tax burden

$1,442
Est. Total Savings
$10,000
Max Deduction
Itemized
Deduction Type
28.8%
Combined Tax Rate

Property Tax Deduction Savings Calculator for Philadelphia

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Federal Savings

$1,100

22% bracket

Pennsylvania State

$154

3.07% rate

Local Tax

$188

3.75% rate

Total Savings

$1,442

28.8% combined

At a 28.8% combined tax rate in Philadelphia, every $1,000 in deductions saves you $288 in taxes.

Savings by Tax Bracket in Philadelphia

10%
$842
12%
$942
22%
$1,442
24%
$1,542
32%
$1,942
35%
$2,092
37%
$2,192

Includes 3.07% Pennsylvania state tax + 3.75% local tax on top of federal savings.

Eligibility Requirements

Property owners who pay state/local property taxes

  • 1Must itemize deductions
  • 2SALT cap of $10,000

Pennsylvania residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 3.07%.

Common Mistakes to Avoid

  • !Exceeding SALT cap
  • !Including special assessments
  • !Forgetting to claim the deduction on your Pennsylvania state return (missing 3.07% additional savings)
  • !Not checking if Philadelphia's local income tax allows this deduction (3.75% potential additional savings)

Required Tax Forms

Schedule A

File these forms with your federal tax return to claim the property tax deduction. Pennsylvania may require additional state-specific forms.

Other Tax Deductions in Philadelphia, PA

Mortgage Interest Deduction

Housing

~$4,585
est. savings

Home Office Deduction

Housing

~$1,572
est. savings

Home Energy Tax Credit

Housing

~$1,800
est. savings

Residential Solar Tax Credit

Housing

~$7,500
est. savings

Military Moving Expenses

Housing

~$5,240
est. savings

PMI Premium Deduction

Housing

~$1,441
est. savings

Mortgage Points Deduction

Housing

~$2,620
est. savings

Casualty & Theft Loss Deduction

Housing

~$6,550
est. savings

Property Tax Deduction in Other Pennsylvania Cities

Pittsburgh, PA

3.07% state + 3% local

~$2,807
+1,365 vs Philadelphia

Allentown, PA

3.07% state + 1.95% local

~$2,702
+1,260 vs Philadelphia

Reading, PA

3.07% state + 3.6% local

~$2,867
+1,425 vs Philadelphia

Erie, PA

3.07% state + 1.58% local

~$2,665
+1,223 vs Philadelphia

Upper Darby, PA

3.07% state + 1.02% local

~$2,609
+1,167 vs Philadelphia

Scranton, PA

3.07% state + 3.4% local

~$2,847
+1,405 vs Philadelphia

Bethlehem, PA

3.07% state + 1.7% local

~$2,677
+1,235 vs Philadelphia

Lower Merion, PA

3.07% state + 2.86% local

~$2,793
+1,351 vs Philadelphia

Calculate Your Full Tax Savings in Philadelphia

Use our free tax calculators to optimize your entire tax return for Pennsylvania.

Income Tax CalculatorTaxes in PhiladelphiaFull Property Tax Deduction Guide

Frequently Asked Questions

How much can I save with the Property Tax Deduction in Philadelphia, PA?

In Philadelphia, Pennsylvania, the property tax deduction can save you an estimated $1,442 per year. This includes $1,100 in federal tax savings and $154 in Pennsylvania state tax savings plus $188 in local tax savings. The national average savings is $2,200/year.

What is the Pennsylvania state income tax rate for Philadelphia residents?

Pennsylvania has a 3.07% state income tax rate. Philadelphia residents also pay a 3.75% local income tax, bringing the combined state/local rate to 6.8%. Philadelphia city wage tax: 3.75% residents, 3.44% non-residents; high combined tax burden

Who qualifies for the Property Tax Deduction in Philadelphia?

Property owners who pay state/local property taxes. The eligibility requirements are the same whether you live in Philadelphia or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Pennsylvania's 3.07% state tax rate.

What tax forms do I need to claim the Property Tax Deduction in Pennsylvania?

To claim the property tax deduction, you need to file Schedule A with your federal return. Pennsylvania residents should also check if the state allows this deduction on their state return, which could provide an additional 3.07% savings. Filing status affects your deduction limits and tax bracket.

Is the Property Tax Deduction better in Philadelphia than in states without income tax?

Yes, Philadelphia residents benefit more because Pennsylvania's 3.07% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 28.8% means more savings per dollar deducted.

Related Calculators

Mortgage Interest Deduction in Philadelphia

Avg savings: $3,500/year

Home Office Deduction in Philadelphia

Avg savings: $1,200/year

Home Energy Tax Credit in Philadelphia

Avg savings: $1,800/year

Residential Solar Tax Credit in Philadelphia

Avg savings: $7,500/year

Military Moving Expenses in Philadelphia

Avg savings: $4,000/year

PMI Premium Deduction in Philadelphia

Avg savings: $1,100/year