A new program passed by the City Council in June will allow eligible Philadelphia homeowners to freeze their property tax bill at a lower amount.

The property tax exemption for low-income earners is to be designed in a similar way to the tax exemption for seniors, but the tax office is still working on implementing the program. Applications are not yet available.

Council member Jamie Gauthier introduced the bill to create the program, which was strengthened by related state legislation passed by Democratic Rep. Jared Solomon of Northeast Philadelphia.

The bill was introduced at an earlier meeting, Gauthier said, by then-Council President Cherelle Parker on behalf of Council Member Darrell L. Clarke.

Gauthier represents the Philadelphia City Council’s 3rd District, where residents of majority-black neighborhoods, including Parkside and Kingsessing, will see some of the city’s steepest property tax increases.

After months of delays, the city released new property assessments on Wednesday. New assessments are available online through a search tool on the city’s website (property.phila.gov), and the city said it began sending out notifications of new assessments and new tax bills on Wednesday.

“The last round of property assessments really spurred us into action,” Gauthier said. Her office has been inundated with calls from constituents who are afraid, frustrated and angry about the drastic tax increases.

“Philadelphia has always prided itself on having a high homeownership rate, even among middle- and low-income people,” Gauthier said. “We want to make sure that stays the way we are.”

The tax office is still working on the regulations to implement the property tax freeze for low-income earners, but here’s what we already know about the program.

How does the tax lock work?

Under this program, the amount of property taxes owed is fixed at the 2024 amount and does not increase even if the value of a home increases at the 2025 assessment.

If the rating goes down, the bill also goes down.

Eligible Philadelphia homeowners must apply for and be approved for the program before they can benefit from the tax freeze.

The freeze will not be retroactive, but will leave the property tax for registered homeowners at the 2024 amount, Gauthier said.

Who is entitled to a tax freeze?

Eligible for the program are single homeowners in Philadelphia who earn no more than $33,500 per year and married couples who earn no more than $41,500 per year.

The limit is based on the highest income allowed under Pennsylvania’s PACENET drug assistance program.

There is no minimum income requirement.

How do I apply?

The IRS plans to make applications available by September, according to Christian Crespo, spokesman for the IRS. The application deadline is January 31, 2025, according to Crespo. Homeowners who are enrolled in the program will see the relief on their 2025 tax bill, which is due March 31.

Gauthier spokesman Harrison Feinman said residents are expected to provide proof of income.

Examples of proof of income when applying for tax exemption for seniors include:

Once an application is received, it is available for downloading, printing, and mailing to the IRS, or it can be completed online at the Philadelphia Tax Center website (tax-services.phila.gov).

Can the new program be combined with other existing reliefs or exemptions?

The low-income property tax freeze, like the senior citizen tax freeze, can be combined with the city’s property tax exemption, which reduces the value of a property by $100,000 for Philadelphia registered homeowners.

“If we actually receive an application from a homeowner who qualifies for the programs but does not have the property tax exemption, we automatically add the property tax exemption to their account,” said Crespo, the department spokesman, adding that the tax freeze provides greater benefits than the long-standing homeowner program.

The freeze can also be combined with the Occupied Property Owner Payment Agreement, which offers monthly payment plans to Philadelphia homeowners with delinquent property tax bills.