Harrisburg, PA – Today, the Shapiro Administration certified a record $1.025 billion for statewide property tax relief through the Pennsylvania Department of Education (PDE) and local school districts — a 14 percent increase from last year’s $900 million in general property tax relief and the first time ever Pennsylvania has over $1 billion available to reduce property taxes. As a result of this certification, the average homeowner will receive $386 in savings on their property tax bill, up from $225 on average — a 70 percent increase — compared to when Governor Shapiro took office.
As required by Act 1 of 2006, Secretary of the Budget Uri Monson certified that this funding is sustainable for at least the next five years. School districts are required to pass on 100 percent of the funds to taxpayers, helping cut costs for homeowners across the Commonwealth.
This year’s certification slightly exceeds the $1.020 billion projected in the Governor Shapiro’s 2025-26 Executive Budget. The increase is made possible by strong gaming revenues and the Shapiro Administration’s fiscally responsible budgeting.
“With new tariffs being put in place and increased economic uncertainty, I know Pennsylvanians are worried about rising costs right now. That’s why my Administration has been laser-focused on lowering costs, cutting taxes, and delivering real relief for Pennsylvanians,” said Governor Shapiro. “This record-breaking funding didn’t happen by accident — it’s the result of responsible, commonsense budgeting and it’s going to put hundreds of dollars back in Pennsylvanians’ pockets where it belongs.”
In addition to the general property tax relief, Governor Shapiro’s 2025-26 proposed budget includes proposals that would fully fund Property Tax/Rent Rebate (PTRR) Program with gaming revenues, freeing up $120 million per year in Pennsylvania Lottery funds for other critical initiatives like supporting older Pennsylvanians and creating a new $30 million per year competitive grant program to help fire companies purchase equipment and improve services.
School districts typically distribute this funding by increasing the homestead/farmstead exemption, which reduces the taxable assessed value of a home. For example, if a home is assessed at $50,000 and receives a $5,000 homestead exclusion, the owner pays taxes on only $45,000. This lowers the property tax burden directly for Pennsylvania homeowners. PDE will notify each school district of their property tax reduction allocation no later than May 1, 2025. Those figures will be posted publicly at education.pa.gov.
This announcement builds on the Shapiro Administration’s strong record of sound fiscal management and efforts to cut costs and lower taxes for Pennsylvanians. As a result of these policies, all three major credit rating agencies have affirmed the Commonwealth’s responsible budgetary approach. In October, Secretary Monson announced the successful sale of $1.395 billion in new General Obligation Bonds and a $237.1 million refunding issuance to refinance existing debt. Thanks to recent improved credit ratings — including Moody’s upgrade to Aa2, the Commonwealth’s highest rating in over a decade — this refinancing will save taxpayers $21.8 million in gross debt service this year and $121.5 million over 10 years when combined with savings from a December 2023 issuance. This follows a 2023 Fitch Ratings upgrade to ‘AA,’ and an S&P Global Ratings outlook improvement to ‘positive’ while affirming the Commonwealth’s A+ long-term rating.
These improved credit ratings are estimated to have generated an additional $10–$20 million in savings on recent bond issuances — enabling the Commonwealth to invest more in education, economic development, and public infrastructure.
In addition to more than $1 billion for statewide property tax relief, Governor Shapiro has made lowering costs for Pennsylvanians a top priority, including:
Expanding the PTRR program, delivering the largest tax cut for seniors in nearly two decades. Last year, more than 520,000 Pennsylvanians received over $318 million in rebates under the expanded program — the most amount of money ever distributed through this program — including nearly 100,000 first-time filers.
Expanding the Child and Dependent Care Enhancement Tax Credit, providing $136 million in savings to over 218,000 families.
Increasing the Net Operating Loss (NOL) Deduction Limit, allowing businesses to reduce taxable income by up to 80 percent by 2029 — keeping Pennsylvania competitive with other states. In this year’s budget proposal, the Governor proposed accelerating Corporate Net Income Tax (CNIT) cuts by two years, reducing the tax rate by 0.75 percent annually and lowering it to 4.99 percent by 2029.
Lowering energy costs by securing a landmark agreement with PJM Interconnection, preventing massive price hikes and saving consumers across the region over $21 billion over the next two years. Following the Governor’s complaint to the Federal Energy Regulatory Commission, the agreement protects Pennsylvania ratepayers and keeps energy costs lower for families and businesses.
Governor Shapiro’s commitment to fiscal responsibility is delivering results and laying the foundation for a stronger, more affordable future for all Pennsylvanians.
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