If you own property in Philadelphia, it’s time to keep an eye on your mailbox.
The City of Philadelphia has begun mailing 2027 Notices of Valuation, which establish the assessed market value used to calculate your 2027 property taxes. Whether you own a condominium in Rittenhouse Square, a historic home in Society Hill, a townhouse in Graduate Hospital, or property anywhere in Philadelphia, reviewing your assessment is one of the most important financial steps you can take this year.
For many homeowners, this year’s assessment may come as a surprise. Philadelphia has experienced continued appreciation across many neighborhoods, particularly in Center City and the luxury market. However, an increase in your assessment doesn’t automatically mean the City’s valuation accurately reflects your home’s current market value.
If you’ve found yourself asking:
- Why did my Philadelphia property assessment increase?
- Is my home overassessed?
- Should I appeal my property assessment?
- How does my assessment affect me if I’m planning to sell?
You’re not alone—and there are steps you can take.
First, Open the Notice
It may seem obvious, but many homeowners set these notices aside without reviewing them.
Take a few minutes to compare your new assessed value with:
- Recent sales of similar homes in your neighborhood
- Your home’s size, condition, and amenities
- Any recent renovations—or the absence of them
- Current market conditions in your area
Remember, the City’s assessment is intended to estimate market value for tax purposes. It is not the same as a professional market analysis or appraisal.
Ask Yourself One Important Question
Would my home realistically sell for this amount in today’s market?
If the answer is yes, your assessment may be reasonable.
If the answer is no—or if the increase appears significantly higher than comparable properties—you have options.
As a real estate professional who specializes in Philadelphia’s luxury market, I regularly analyze home values using current market data, buyer demand, and comparable sales. A professional market opinion can help determine whether your assessment aligns with today’s market.
Request a First Level Review
If you believe your assessment is inaccurate, homeowners may request a First Level Review (FLR) through Philadelphia’s Office of Property Assessment.
This informal review allows the City to correct factual errors or reconsider an assessment before a formal appeal. There are strict filing deadlines, so it’s important to review your notice promptly.
File a Formal Appeal If Necessary
If you still believe your property has been overassessed, you may file a formal appeal with the Board of Revision of Taxes.
A successful appeal could reduce your property’s assessed value and potentially lower your future property tax obligation.
Don’t Forget the Homestead Exemption
If your property is your primary residence, make sure you’re receiving Philadelphia’s Homestead Exemption.
This program reduces the taxable portion of your home’s assessed value and can save eligible homeowners hundreds—or even thousands—of dollars in property taxes over time.
If you’re unsure whether you’ve already applied, it’s worth checking.
Thinking About Selling? Your Assessment Matters.
Many homeowners assume property assessments only affect taxes.
In reality, they can also influence the selling process.
While buyers don’t purchase homes based solely on assessed value, they absolutely consider annual property taxes when evaluating affordability. An inflated assessment can lead to higher taxes, which may become part of negotiations.
Whether you’re planning to sell this year or simply considering your options over the next few years, understanding your property’s true market value is an important part of making informed decisions.
Frequently Asked Questions
Does my property assessment determine what my home is worth?
No.
Your assessment is the City’s estimate of market value for tax purposes. Your home’s actual market value depends on current buyer demand, comparable sales, inventory levels, location, condition, and many other factors.
Should I appeal my Philadelphia property assessment?
If your assessed value appears significantly higher than what your home would likely sell for in today’s market, it may be worth exploring a First Level Review or formal appeal.
I’m planning to sell. Should I still review my assessment?
Absolutely.
Higher property taxes can impact buyer affordability and become a topic during negotiations. Understanding whether your assessment accurately reflects today’s market can help you prepare before listing your home.
Need a Second Opinion?
If you’ve recently received your 2027 property assessment and are wondering whether it accurately reflects today’s market, I’d be happy to help.
I offer a complimentary market analysis comparing your property to recent sales, current inventory, and neighborhood market trends to determine whether your assessment appears reasonable.
Sometimes the City’s valuation is right.
Sometimes it isn’t.
Knowing the difference can help you make informed financial decisions, avoid paying more property taxes than necessary, and better prepare if you’re considering selling your home.
Whether you’re planning to sell this year, next year, or simply want to better understand your home’s value, I’m here to help.
If you’d like a professional review of your property’s current market value, contact me today for a confidential, no-obligation consultation.