P
hiladelphia homeowners facing property tax hikes can breathe a sigh of relief, thanks to the city's Low-income Real Estate Tax Freeze program (LITX). To qualify for this lifeline, applicants must meet specific income and residency requirements. The deadline to apply is February 28th, giving eligible homeowners a chance to freeze their 2025 property tax bill at last year's amount.

    The program was born out of Councilmember Jamie Gauthier's legislation, which aimed to alleviate the anxiety caused by the city's 2024 property assessments. These assessments revealed an 11% increase in property values, disproportionately affecting low-income neighborhoods of color. Gauthier's bill activated a state law allowing local tax authorities to refund or forgive real estate taxes for low-income taxpayers.

    To apply, homeowners can visit the city's website and submit their application online or by mail. They'll need to provide proof of income, identity, and residency. The program is only open to individuals who own and live in their primary residence, excluding those who rent out part of their home or claim another property as their main address.

    Carrie Rothman, vice president of Habitat for Humanity Philadelphia, sees the LITX as a vital tool in helping low-income residents maintain their homes. "The tax burden can be overwhelming," she said. "If you think about how integral being able to pay your taxes is to staying in your home and maintaining it with the stress of keeping that largest financial asset, yeah, I think there's a lot of connection to well-being."

    As of January 23rd, over 1,600 eligible homeowners had been approved for the program. Councilmember Gauthier believes automatic enrollment could be a game-changer, but the city's Department of Revenue has yet to comment on this proposal.

    Homeowners enrolled in LITX can estimate their tax bill by using the city's property search website. Their bill will freeze at last year's amount, and any real estate tax balance from previous years will adjust accordingly. The program is just one of several tax-assistance options available to Philadelphia homeowners, including the Homestead Exemption and the Longtime Owner Occupants Program (LOOP).