Property Taxes in Lancaster: What to Expect
Local property tax rates will impact your finances. As long as you live in the home. So before buying a house, check out the local property tax rate. If you are looking for a home in Lancaster, PA, you should take recent changes in the tax rate into consideration.
When buying a home, there are so many factors to consider. Size, style, location, and price, among others. Often, when prospective homeowners find the house they want in a neighborhood they like, their focus turns to the asking price and the current market. Can they negotiate with the sellers for something more affordable? Will they end up in a bidding war? Buyers can become focused on getting the house in the short term. But there are long-term factors that are equally important in whether or not a house is affordable.
PA Property Tax
Pennsylvania, in general, is considered to have one of the heaviest tax burdens in the country. It has an average tax burden of 10.2% and an effective burden of 1.5%, which is the 13th highest in the country. In Pennsylvania, each county determines its own property tax rate. Statewide, the median tax rate is $3,765 for a $250,000 home in 2018. The highest property tax rates are found in Monroe County, where the effective tax rate is 2.41%, the median payment is $4,105, and the median home value is $170,600. In contrast, the lowest property tax rates are in Bedford County. Here, the effective tax rate is 0.90%, the median payment is $1,124, and the median home value is $125,00. Lancaster County falls in between, with an effective property tax rate of 1.43%, the median payment is $2,638, and the median home value $184,400.
Recent Changes in Lancaster County Property Tax Rates
Under the proposed 2019 budget, Lancaster residents may see the largest tax hike in a decade. The tax hike is needed to cover increases in municipal salaries and benefits as well as to support a new lead paint inspector, a new social worker for the police and community, and a new IT support person for the police department’s body camera system. The average homeowner can expect an increase of $100 on a $100,00 home. Homes were reassessed in 2017 for the first time since 2005.
Residents Ask For PA Property Tax Reform
There is a movement to eliminate school property taxes and replace the funds with personal income tax and sales tax. These changes would provide tax relief to homeowners, especially senior citizens living on a fixed income. While there is a bill, the Property Tax Independence Act, in the state legislature to make these changes, it has not yet passed. Legislators have not been able to come to an agreement on school property tax reform. Currently, school districts are allowed by law to raise school property taxes regularly as long as they observe state-allowed maximum thresholds. School property taxes are the largest component of property taxes.
If you are thinking of buying a home in Lancaster and have questions about how PA property tax rates will affect your purchase, reach out to the Jeremy Ganse Home Selling Team. Our agents will be happy to discuss your concerns and help you find the home you love at the right price for you.