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Philadelphia's 10-Year Property Tax Abatement, Explained

How the abatement lowers taxes on new construction and improvements — and who still qualifies.

What is Philadelphia's 10-year tax abatement?

Philadelphia's 10-year tax abatement is a program that exempts the added value of new construction or improvements from real estate taxes for a period of years. In practice, an owner keeps paying tax on the land and the pre-improvement value, while the tax on the new value is reduced or eliminated for the abatement period.

Who uses the abatement?

Developers, investors, and owners who build new or substantially renovate benefit most, because the abatement improves a project's returns and can make a marginal deal work. The program has been adjusted over time, and residential and commercial projects are treated differently, so the current rules and any caps should be confirmed for your project before you rely on them.

How do you get it?

The abatement is not automatic — the owner must apply to the City within the required window after the work is assessed, and missing the deadline can forfeit the benefit for that year. Because timing and documentation matter, owners often coordinate the abatement with their assessment and real estate strategy from the start.

How Nochumson P.C. helps

Nochumson P.C. advises developers and owners on tax abatements and development incentives, from eligibility through the application. Contact us to see whether your project qualifies.

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