Getting over the hurdle of property tax payments is harder these days. That’s because taxable home values have gone up.
So older Pennsylvanians are praising their governor, Josh Shapiro, for signing Act 7 of 2023 into law. It enlarges Pennsylvania’s Property Tax / Rent Rebate (PTRR). Hundreds of thousands of people — those who own, and those who rent — will benefit from the change. They include: Pennsylvanians aged 65 and up; surviving spouses aged 50 and up; and people with disabilities who are at least 18 years old.
The modified law takes effect in January 2024. But you need to know about it in order to get it! So here’s a Q&A to describe what’s going on.
Paying Property Taxes or Rent in Pennsylvania in 2023? Better Rebates Are Coming.
These rebates have an established history in Pennsylvania. They were started through, and are continually supported by, the Pennsylvania Lottery. Here’s the thing. Until Gov. Shapiro went to work on modifying the rebates, Pennsylvanians’ Social Security income was rising with inflation but the rebate allowances weren’t. In other words:
- People’s incomes were going up, along with the cost of living.
- Once residents were pulling in more than $35K, they were deemed to be making too much money to qualify for the rebates.
- And renters couldn’t qualify at all, above an extremely low income ceiling of just $15K.
So, an adjustment to the rebate program has been a long time coming. Now that the time has indeed come, eligible Pennsylvania residents should know these facts:
- The governor’s plan expands the PTRR to nearly 175,000 more Pennsylvania seniors and others with disabilities. That means more than 600,000 people will benefit under the plan. Some will be new applicants, and some will be continuing to apply as they had in past years — but now they’ll get a higher level of support.
- To allow more people to benefit, the rebate ceiling will rise. The standard rebate used to be capped at just $650. Now, eligible residents can get up to $1,000 back.
- The income cap for both renters and homeowners will become the same. It will be $45,000 a year.
Why does Pennsylvania make people keep applying each year for the rebate? Because the rebate they get depends on their income per year, and the total rent or property tax bill for each year.
Pennsylvania Rents Are Going Up. So Renters Get an Especially Helpful Rebate Boost.
Rent prices are starting to ease up a bit. But rents have gone up significantly since before the pandemic. Consider Harrisburg, the capital city. The average Harrisburg renter pays about $1,300 each month, for an apartment that’s a bit more than 900 square feet of space.
But as we’ve noted, up until now, renters couldn’t get the rebates unless their incomes were under $15K.
Fortunately for these residents, their income limit now makes a lot more sense.
As we observed in August:
Income limits for both renters and homeowners will become $45,000 (to rise in the future with inflation). The current income ceiling is $35,000 a year for homeowners and $15,000 annually for renters. (Half of Social Security income and all veterans’ payments won’t count.)
All eligible Pennsylvania residents will be glad to know that from this point on, the income cap will be lifted as the cost of living rises. This way, increases in Social Security income won’t knock people out of rebate eligibility.
Are You, or Is Someone You Care About, Eligible? Here’s How to Claim the Rebate.
If you are an eligible Pennsylvania resident, it’s not too late to claim this benefit for last year! You have all year to file for the Property Tax/Rent Rebate.
Again, that deadline is New Year’s Eve.
Or perhaps you would like to help a loved one with a disability get the annual rebate they qualify for. It’s a simple form to complete, and free to submit. You just need to gather the necessary documents.
Read the instructions to learn what documentation you’ll need to include, like:
- Proof of taxes: Copies of your prior year’s property tax bills (the tax collector’s office can send you a statement).
- Proof of age: A copy of a Pennsylvania ID.
- Proof of eligible income: W-2 and 1099 forms.
If you’re seeking a rent rebate, whether for an apartment or a senior living rental situation, you’ll need to have the property owner give you a rent certificate showing what you pay monthly.
Now, what about people who now becoming eligible for the 2023 tax year? Beginning in the middle of January 2024, Pennsylvania’s revenue department will open an application period that applies to property taxes or rent residents paid during 2023. At that time, thanks to the expansion of the program, PTRR rebates will be available to many more Pennsylvanians who fill in the form.
Anyone who signed up for the 2022 rebate using a paper form will receive a new one in the mail, with directions.
Also in January 2024, Pennsylvania the Department of Revenue will offer the paper application for downloading at Revenue.PA.gov/ptrr. Need general tax and rebate information? Visit MyPATH.PA.gov.
Across Pennsylvania, Department of Revenue district offices offer help for those who want support applying for their rebates. Another way to get some help or have more questions answered, at no charge to you? Call a local senior center or your legislator’s office.
Also note: The revenue department offers a “Where’s My Rebate” page on its website. Rebates take some time to process, and the website takes some getting used to — so muster up your patience. Sometimes it’s just easier to call the office to get questions answered.
This Makes Communities Stronger. Thanks, Pennsylvania.
Pennsylvanian’s property tax and rent rebates aren’t huge. But for those who receive them, they are vital boosts. With the rebates, paying the rent or the mortgage becomes a little less stressful. And now, rebate eligibility criteria will expand. So the plan will help a larger number of people who are doing their best to deal with rising costs of housing, of borrowing, and of buying daily necessities.
Pennsylvania, thanks for understanding what seniors and people with disabilities are going through. These days, everyone faces elevated inflation and borrowing rates. But for some people, property tax rebates offer a way to avoid displacement. They offer key support for people doing their best to keep living independently at home.
Keeping these residents stronger makes whole communities stronger.
Supporting References
Guest Editorial By Pat Browne and Jason Kavulich at PennLive (PennLive.com, by Advance Local Media LLC): Here’s What Pennsylvania’s Seniors Need to Know About the Property Tax / Rent Rebate Program (Oct. 13, 2023).
Jeffrey Johnson and Karen Gray, media contacts, via Pennsylvania Pressroom (an official Pennsylvania government website): Shapiro Administration Highlights Historic Expansion of Property Tax / Rent Rebate Program During Visit To Lackawanna County Senior Health Fair (Sep. 22, 2023).
Sue Gleiter at PennLive (PennLive.com, by Advance Local Media LLC): Could You Afford to Rent a Place to Live in Central Pennsylvania? It Depends (Sep. 8, 2023).
More on topics: Pennsylvania, Property taxes
Photo credits: RUN 4 FFWPU and Vlad Vasnetsov, via Pexels.