Stay up to date on current News & Issues.
Private roads bill signed into law by governor
Preliminary Solebury budget holds the line on taxes
West Chester Borough to create an advisory Community Campus Committee
Delco’s bond rating raised to AA+ by Standard & Poor’s
Collegeville’s Providence Town Center is on the market
‘Tangled titles’ correlate to violence in some Philadelphia neighborhoods
Ideally, homes are assessed at 100% of their market values. That’s what happens immediately after a countywide reassessment.
But assessment values become inaccurate over time as the real estate market changes. To keep new assessments in line with old ones, the PA Department of Revenue sets a Common Level Ratio factor for each county every July.
For example, Montgomery County has a 2021-2022 common level ratio factor of 2.24, meaning market value should equal 2.24 times the assessment. Doing the math in reverse, Montco assessments should equal about 44.643% of market value. So, a home with a market value of $100,000 would be assessed at about $44,643, and that assessed value would be used to calculate local property tax bills.
Here’s the math behind that percentage:
If you want to figure out the market value that the county is using — meaning, you want to know what the county thinks a property is worth — multiply the assessed value by the common level ratio factor. Using the Montgomery County example above: $44,643 (assessed value) x 2.24 (ratio) = $100,000 (market value as determined by county).
Here are the Common Level Ratio factors and assessment value percentages* for Greater Philadelphia counties:
This Philadelphia Inquirer article provides more explanation on assessments and appeals in the Greater Philadelphia region.