- Photo Credit Dan Moyle: Creative Commons
According to a 2013 report analyzing the different tax burdens throughout the United States, it was found that Philadelphia was among the highest in both property taxes and income taxes for families making over $150,000 a year. Analysts looked at property taxes, sales tax, automobile taxes and federal income taxes to complete their lists of the 10 states with the lowest tax burdens and the 10 with the highest.
PHILADELPHIA PROPERTY AND INCOME TAX
Philly not only is high on the list for property taxes and federal income taxes, but it also had an unemployment rate of 8.6%, and gasoline taxes jumped 31 cents per gallon in 2013. These findings were significant in starting gentrification and relief programs in the neighborhoods of Philadelphia starting at the end of 2013.
For hard facts, a family making $25,000 in 2012 paid $788 in property taxes which was the 2nd highest of the country and that same family paid $3,794 in federal income tax which came in 7th highest. A family making $150,000 income in Philly was 3rd highest in income taxes with a burden of $25,317. Interestingly, the city with the lowest tax burden for property, Wilmington, DE, was a tie in the unemployment category with Philadelphia. What helped DE residents as well as the majority of the states found in the low tax list, was no state sales tax.
PHILADELPHIA PROPERTY DELINQUENCIES
High property taxes lead to delinquencies in Philadelphia neighborhoods, which has the most permissive property tax enforcement system in the nation. It has been stated that Philly has over 100,000 properties in delinquencies, and 40,000 have been that way for over 6 years. Distressed properties are lowering property values in some areas as much as $50,000. Delinquencies and distressed properties are closely related, once again pointing the way for the need for gentrification to save Philadelphia’s neighborhoods.
Even though some of your taxes might be above national average, there are many things that still make Philadelphia a city where you want to live. Whether you love historic buildings, cheesesteaks and water ice, or museum hopping, you’ll be sure to find plenty of things to keep you from thinking about the taxes. If you’re interested in learning more about homes for sale in Philadelphia, or would like to chat about buying a home in Philadelphia, contact the AGENT LADY @ 215-518-5193 or schedule an appointment.
If you like what you read please share this post. If you liked it enough to receive more info about Philadelphia and things related to buying and selling homes, please subscribe at the top of the page and start getting the blogs sent directly to your email.
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.