Pennsylvania's Homestead Exclusion reduces property tax by:
Question & Answer
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A percentage of assessed value
A is incorrect because the Homestead Exclusion does not reduce taxes by a percentage of assessed value. Pennsylvania's program uses a fixed dollar amount exclusion rather than a percentage-based reduction, which would vary with property value.
A flat dollar amount set by the school district
$15,000 statewide
C is incorrect because while some states offer fixed statewide amounts, Pennsylvania's Homestead Exclusion varies by school district. There is no single $15,000 statewide amount; each district sets its own exclusion value.
50% for seniors
D is incorrect because Pennsylvania's Homestead Exclusion is not limited to seniors. While some states offer special property tax relief programs for seniors, PA's program is available to all eligible homeowners who meet the residency requirements.
Why is this correct?
B is correct because Pennsylvania's Homestead Exclusion provides a flat dollar amount reduction in assessed value, with the specific amount set by each individual school district, not by state mandate. This reduction is funded by gaming revenue distributed to local school districts.
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