Breaking Down Allegheny County Property Taxes: What You Need to Know

Hi everyone,

This week, I’m focusing on an essential topic for Allegheny County and City of Pittsburgh property owners: real estate taxes. If you’re in Westmoreland, Armstrong, Washington, or Butler County, this doesn’t apply to you directly—yet. As legal challenges and appeals in Allegheny County continue to shape property tax policies, it’s something that could affect surrounding areas in the future.

On a personal note, my wife and I are purchasing a home in Lawrenceville, and I’ll be using our own property as a relevant example throughout this newsletter. We’ve noticed our home’s assessed value is significantly lower than the market value, which raises some important questions about future tax increases.

If your new here or reading this for the first time I’m Pittsburgh’s Go-To Realtor, Expert in Luxury Homes & Strategic Real Estate Solutions, and someone who’s proud to combine small-town roots with big-city results. Over the years, I’ve sold millions of dollars worth of real estate, met some incredible people, and had the privilege of helping them buy and sell some truly amazing properties.

Let’s dive into this week’s Real Estate Revelations!

What Are Property Taxes, and Why Do They Matter?

Property taxes fund vital services like schools, infrastructure, police, and fire departments. They’re calculated using two key factors:

1. Your Home’s Assessed Value: The county’s estimate of your property’s worth.

2. The Millage Rate: A "mill" is $1 of tax for every $1,000 of assessed value.

For example, let’s look at my soon-to-be home in Lawrenceville:

• Assessed Value:

  • Land: $19,100

  • Building: $51,000

  • Total: $70,100

With a combined millage rate of 23.07 mills (County: 4.73, City: 8.06, School District: 10.25), my current tax bill is $1,617 annually ($70,100 × 23.07 ÷ 1,000 = $1,617).

However, based on the market value of $281,000 and the 2025 Common Level Ratio (CLR) of 52.7%, my home’s adjusted assessed value should be $148,087.

• Projected Tax Bill:

  • $148,087 × 23.07 ÷ 1,000 = $3,418 annually.

This stark difference highlights why understanding assessed values, millage rates, and the CLR is so important.

What Is the Common Level Ratio (CLR)?

The CLR ensures property assessments align with fair market values. For 2025, it’s 52.7%, meaning homes assessed at more than 52.7% of their market value may be overassessed—and eligible for appeals.

Historical CLR Rates for Allegheny County:

• 2020: 86.2%

• 2021: 87.5%

• 2022: 81.1% (reduced to 63.5% after legal challenges)

• 2023: 63.6%

• 2024: 54.5%

• 2025: 52.7%

These reductions aim to ensure assessments reflect current market conditions, especially given Allegheny County hasn’t conducted a full reassessment since 2012.

Why Was the CLR Lowered?

The CLR was reduced due to:

1. Legal Challenges:

   • Court-mandated corrections addressed taxpayer lawsuits highlighting inequities in older CLR rates.

2. Outdated Assessments:

   • Properties assessed on pre-2012 data no longer align with today’s market trends.

3. State Oversight:

   • The State Tax Equalization Board (STEB) recalibrates the CLR annually using real estate sales data.

Why This Matters to You

Using my Lawrenceville home as an example:

• Current Assessed Value: $70,100 (underassessed).

• Market Value: $281,000.

• Adjusted Assessed Value (2025 CLR): $148,087.

While I’m currently paying $1,617 annually in property taxes, my bill will likely increase to $3,418 annually once reassessed. This difference underscores why it’s important to know your home’s market value and how the CLR impacts your taxes.

If your home’s assessed value exceeds 52.7% of its market value, you might be overpaying—and eligible for an appeal.

What’s Happening to Millage Rates?

To compensate for lower assessed values caused by the reduction in the CLR, Allegheny County raised its millage rate by 36%—from 4.73 mills to 6.43 mills for 2025.

You may have seen this article in the news recently about the county increasing taxes. This millage rate increase is directly tied to the revenue shortfalls resulting from the historic CLR reductions.

Who Does the Lower CLR Hurt?

While many homeowners and buyers benefit from lower assessments and tax savings, these reductions have significant consequences:

1. Local Governments and Schools:

   • Lower assessments mean less revenue for schools, infrastructure, and public services.

   • School districts may resort to appealing underassessed properties or cutting programs to make up for lost funding.

2. Non-Appealing Homeowners:

   • Homeowners who don’t appeal may face a higher effective tax burden, as millage rates rise to offset revenue losses.

3. Future Concerns:

   • Prolonged revenue shortfalls could lead to further millage increases or even a countywide reassessment, which would reset property values across the board.

Updated Millage Breakdown:

• County: 6.43 mills

• City of Pittsburgh: 8.06 mills

• School District: 10.25 mills

Example Tax Bill with Adjusted Assessed Value:

Using my soon-to-be home in Lawrenceville as an example:

• Adjusted Assessed Value: $148,087

• Combined Millage Rate: 24.74 mills

• Tax Bill: $3,664 annually ($3,367 before increase)

While these millage increases address funding gaps, they highlight the broader impacts of property tax policies on public services and homeowners alike. You can view the current millage rates for your area here.

Filing a Tax Appeal

If you believe your property is overassessed, filing an appeal can help reduce your tax liability.

Steps to File:

1. Check Your Assessed Value:

   • Use the Allegheny County Real Estate Portal.

2. Compare to Market Value:

   • Market Value = Assessed Value ÷ CLR (52.7%).

3. Gather Documents:

   • Comparable sales. (I can help with this)

   • Professional appraisals.

   • Photos showing property issues.

4. File Your Appeal:

   • For 2026 taxes, file between July 1, 2025, and September 2, 2025. Learn more about the process here.

Need help? Contact Attorney Nicole Hauptman Amick for expert advice.

Homestead Exemptions

If you live in your home, the Homestead Exemption is an easy way to reduce your property tax bill.

• County and City Taxes: $18,000 reduction.

• School District Taxes: Additional $29,447 reduction (Pittsburgh Public Schools).

Example Using My Home:

• Old Assessed Value: $70,100

• Old Tax Bill: $1,617 annually (based on the old assessed value and current millage rates).

• New Assessed Value: $148,087

• New Tax Bill Before Exemptions: $3,791 annually (based on the updated assessed value and 2025 millage rates).

Now, with exemptions applied:

• Exemptions: $47,447

• Adjusted Value: $100,640

• New Tax Bill After Exemptions: $2,487 annually

That’s a savings of $1,304 compared to what I’d pay without the exemptions. To put that into perspective, that’s a few dinners at Del Frisco’s in Pittsburgh—or, if I’m being financially smart, some A5 Wagyu from Strip District Meats for a top-tier dinner at home. Either way, it’s money better spent on something I’d actually enjoy!

Learn more about Homestead Exemptions here.

Final Thoughts

Understanding property taxes, millage rates, and exemptions is critical for Allegheny County homeowners. If you have questions or need help navigating your options, don’t hesitate to reach out—I’m here to guide you every step of the way.

Thinking About Buying or Selling?

Let’s chat about how to navigate Pittsburgh’s real estate market. Whether you’re looking to buy, sell, or invest, I’m here to help. Hit reply, or schedule a consultation here: 15 Min Consultation

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Thanks for letting me be a part of your inbox this week! I hope you found these insights helpful, whether you're a curious Pittsburgher, a buyer, a seller, or an investor. As always, I’m here to answer any real estate questions or just chat about the market.

Wishing you a wonderful week ahead,
Tim

Tim Pettigrew
Realtor | eXp Realty
📍 Serving Pittsburgh and Surrounding Areas
📞 412-545-6006 | ✉️ [email protected]
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Disclaimer:
This email is intended for informational purposes only and is not intended to be a solicitation if your property is currently listed with another broker. All real estate information is deemed reliable but not guaranteed. Please consult a professional for specific advice.

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