Property taxes levied by local governments are a key funding source for Pennsylvania public schools. Property and local tax revenue represents nearly half of all public educational revenue in the US, behind only state taxes.
Many Pennsylvanians’ heaviest tax burden comes from property taxes, with some Keystone State residents even paying four times as much property tax as they pay for all other county and local taxes – combined.
Pennsylvania property tax revenues have grown in recent years and are only expected to continue to rise in the near future.
According to a report from the Independent Fiscal Office, property tax revenues are expected to grow by 4.8% in 2025 and by 4% in 2026.
Pennsylvania property tax revenues totaled $16.6 billion in the 2022-2023 fiscal year before rising by 3.2% to $17.2 billion in the 2023-2024 fiscal year. Revenues are projected to hit $18.7 billion by the 2025-2025 fiscal year.
Pennsylvania’s standardized test scores plummeted during the pandemic and have slowly begun to recover in the years since. It remains to be seen whether the increase in property tax revenues will translate to an increase in student performance.
