School district property taxes in Pennsylvania are set to increase significantly in the coming years, according to a recent analysis.Property Tax Projections
The Independent Fiscal Office projects a 4.8% and 4% increase in school district property taxes in 2025 and 2026, respectively. This follows years of steady growth, with a 2.4%-3.3% increase in recent years. In fiscal year 2022-23, property taxes totaled $16.6 billion and are expected to rise by 3.2% to nearly $17.2 billion in 2023-24.Growing Tax Burden
The increase in property taxes is notable, with the largest spike seen since 2018-2019, driven by a property reassessment in Philadelphia that caused a significant rise in home values. By 2025-26, statewide school district property taxes are projected to reach $18.7 billion.Revised Estimates
While previous estimates predicted continuous growth in tax burden, the latest projections show a slight revision downward. The current projection for 2023-24 is $17.2 billion, lower than the $17.5 billion initially expected.Shift in Funding
Despite the rise in property tax collections, their overall share in funding schools has decreased in recent years. Temporary federal aid from COVID-19 and state sources have played a larger role. Homeowners can bear a significant burden, often paying more for school taxes than all other local and county taxes combined.Growing School Balances
Schools are also increasing their unassigned funds in general fund balances. From 2018-19 to 2022-23, unassigned funds grew by 61%, from $1.9 billion to $3.1 billion. As school district property taxes continue to rise, residents will need to brace themselves for increased financial responsibilities.