What Happens If You Don't Pay Your Real Estate Taxes (in Philly)?

What Happens If You Don't Pay Your Real Estate Taxes In Philly?

The city of Philadelphia uses a law firm to collect delinquent real estate taxes. If your real estate taxes go unpaid then civil tax actions can be filed in the Court of Common Pleas of Philadelphia to enforce the collection of delinquent real estate taxes.

Unfortunately this means that your property can be sold at a Sheriff's sales if your real estate taxes are not paid. Also interest and other fees will be added to the amount that you owe!

In order to prevent a civil tax action from being filed against your property you must send your payment to the city of Philadelphia.

If you reside in the property and are unable to pay the amount due in a lump sum then you should contact the law firm to discuss the possibility of entering a payment agreement to pay the amount due in installments. (Proof of a financial hardship may be necessary to enter into such an agreement.)

Also see if you can obtain a copy of the "Philadelphia Taxpayer Assistance Brochure". For help or assistance in arranging a payment plan, you can call any of the Housing Counseling Agencies listed on page 5 of this brochure.

Did you know that there are millions of dollars owed to the city of Philadelphia. According to the mayor of Philadelphia these taxes are needed to support police and fire fighters plus the money also supports new schools, senior centers, recreation centers and playgrounds.

Real Estate taxes are due once a year, on March 31st of the tax year. If the taxes are not paid by March 31st of the tax year, a penalty charge will accrue on the principal amount of the tax, up to a maximum charge of 15% of the principal amount due. If the taxes remain unpaid after December 31st of the tax year, the 15% addition is added into the principal, and tax liens are filed against the property. Penalties and interest, as well as attorney fees continue to accrue until the tax is paid.

You may be able to postpone a Sheriff's sale of your home one time for 60 days.

You can petition the Philadelphia Tax Review Board to try to reduce the amount that you owe.