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Pennsylvania Property Tax/Rent Rebate Program: A Great Option for Seniors & the Disabled

Property Tax

The Pennsylvania Property Tax / Rent Rebate Program is a fairly unknown program to most people residing in the state of Pennsylvania. Our state government sure does NOT advertise programs that GIVE us money back but they sure let you know when you owe them!

If not for reading about it in a newsletter from my Center for Independent Living (CIL) about a decade ago, I’d of never heard of the program. That was around 1996 or 1997, only about two years after the program bean. That first year I received a rent rebate, being that I lived in an apartment, of, I believe, $300. That may sound a small amount but it’s great if you’re on a fixed income like myself. Every few years the rebate amount increases. I usually receive approximately $400-500, being a renter. This year, being my first full year as a homeowner, I now get a rebate on property taxes rather than rent. I expect a rebate of $650.

Now, how the rebate program works and who qualifies. I don’t expect most readers here to qualify for it but some might. If you know of any Pennsylvanians who DO qualify, please get the word out. Thanks!

This program began in the early 90s. It is run by the state of Pennsylvania and funded by its state lottery funds. This is a property tax relief initiative for senior claimants or spouses 65 years of age or older, widows or widowers 50 years of age or older and the permanently disabled 18 years of age or older.

Your rebate is either based on the amount of you rent, if you are a renter, or by your property taxes, if you are a homeowner. If you rented for part of the year and a homeowner for the other part, your rebate will take that into account. You, however, cannot have received cash assistance, such as welfare, during the year for which the rebate is being filed.

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Only one-half of Social Security, Supplemental Security Income and Railroad Retirement Tier 1 benefits are counted when calculating eligibility income.

On June 27, 2006, Pennsylvania, Governor Edward G. Rendell and the legislature enacted a law (Special Session House Bill 39 – SS HB 39) to expand the Property Tax/Rent Rebate program to give more Pennsylvanians a rebate and increase the amount of the rebates. The bill delivers the largest property tax cut in Pennsylvania history – $1 billion annually to Pennsylvania homeowners. Pennsylvania seniors will get the most significant property tax relief through an expansion of the Property Tax Rent Rebate program.

Rendell said “This day is a major victory for Pennsylvanians who have fought for decades to have their property taxes cut. Every homeowner in Pennsylvania will not only get significant reduction, but they will finally get a say in future tax increases. This bill represents a victory of the possible over politics-as-usual.”

The household eligibility income limit has been increased from $15,000 to $35,000 so that many more people can qualify. The maximum rebate has been increased from $500 to $650. New income guidelines:

Household Income / Homeowners Rebate
$0 – $8,000 $650
$8,001- $15,000 $500
$15,001 – $18,000 $300
$18,001 – $35,000 $250

Household Income / Renters Rebate
$0 – $8,000 $650
$8,001- $15,000 $500
$15,001 – $18,000 —-
$18,001 – $35,000 —-

To get a quick estimate of your possible rebate, use a Property Tax / Rent Rebate Estimate Calculator here.

Eligible Pennsylvanian’s can sign up to now to receive a Property Tax/Rent Rebate application by mail when they are available in February 2007 (I received mine in January). Click here to sign up online, or call 1-888-222-9190.

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If you qualified for the rebate program the previous year and received a rebate, you will automatically receive a form the next year and do not need to sign-up again.

You can also fill the forms in on online PDF forms, print them out and then mail them in. This is useful for those who have a difficulty writing or seeing the form. You will find the PDFs here. Use the instruction PDF to tell you which sections and forms you will need to fill-in and mail.

Deadline to file this year for 2006 is June 30, 2007. Rebates begin being sent in July but I sometimes get it in May.

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