Explanation of Program
Explanation of Program
The rebate program benefits eligible Pennsylvanians age 65 and older; widows and widowers age 50 and older; and people with disabilities age 18 and older. The income limit is $35,000 a year for homeowners and $15,000 annually for renters, and half of Social Security income is excluded.
The maximum standard rebate is $650, but supplemental rebates for qualifying homeowners can boost rebates to $975.
The Property Tax/Rent Rebate Program is one of five programs supported by the Pennsylvania Lottery. Since the program’s 1971 inception, older adults and adults with disabilities have received $4.8 billion in of property tax and rent rebates. The rebate program also receives funding from slots gaming.
Homeowners now receive:
|
Income |
Maximum Rebate |
| $0 to $8,000 |
$650 |
| $8,001 to $15,000 |
$500 |
| $15,001 to $18,000 |
$300 |
| $18,001 to $35,000 |
$250 |
Renters now receive:
|
Income |
Maximum Rebate |
| $0 to $8,000 |
$650 |
| $8,001 to $15,000 |
$500 |
In addition, the law gives even more tax relief to the seniors in most need:
* Seniors who live in Philadelphia, Pittsburgh or Scranton, where local wage/income tax rates are very high, will not benefit from a local tax shift to lower taxes on top of the reduction offered by the state funded property tax relief. To ensure that seniors in these communities receive significant property tax relief, each senior household with income under $30,000 has its property tax rebate increase by an additional 50 percent.
* In addition, property tax rebates are increased by an additional 50 percent for senior households in the rest of state, so long as those households have incomes under $30,000 and pay more than 15 percent of income in property taxes.
Notice of Property Tax/Rent Rebate Class Action Lawsuit
An attorney alleges the department may have improperly denied property tax/rent rebates to applicants who had passed away between 2004 and 2009, and the Commonwealth Court has determined the class action case may have merit. Should the class action suit be successful in challenging department regulations requiring an applicant to be alive on Dec. 31 of a claim year for a claim to be paid, class members may be entitled to part or all of a property tax/rent rebate previously denied by the department. As a result, the department is required to provide notice of the class action suit on its website. The department cannot, however, advise claimants or their representatives further on this matter, nor can it offer further public comment on the pending litigation.
