Pittsburgh Real Estate Taxes: What You Need to Know in 2025
If you own or are considering buying property in Pittsburgh, understanding Pittsburgh real estate taxes is essential. Property taxes in Allegheny County and the surrounding region can vary significantly depending on your municipality and school district. With some of the highest combined property tax rates in Pennsylvania, it’s crucial to understand how millage works and what you’re paying for to avoid surprises during closing or tax season.
What Is a Millage Rate?
Property taxes are based on the assessed value of your home, not the current market value. The millage rate (or “mil rate”) is the amount of tax due per $1,000 of assessed value. One mill equals $1 in tax per $1,000.
Taxes in Allegheny County typically include three layers:
- County tax
- Municipal (borough or township) tax
- School district tax
Each layer has its own rate, and the total is what you owe annually.
Allegheny County’s Current Millage Rate (2025)
As of this year, Allegheny County raised its millage rate from 4.73 to 6.43 mills, its first hike in over a decade. The increase addresses budget shortfalls and expired federal aid.
Example calculation:
- Assessed Value: $100,000
- County Millage: 6.43
- Tax Owed: $100,000 ÷ 1,000 = 100 → 100 × 6.43 = $643
Use the Allegheny County Tax Calculator here:
Allegheny County Tax Calculator
You can also learn how taxes impact selling a rental property in Pittsburgh if you’re an investor or landlord.
School District Millage Rates: Why They Matter
School taxes are usually the largest part of your tax bill. They tend to rise when districts:
- Renegotiate teacher salaries
- Improve facilities
- Add new programs or services
Older neighborhoods with fewer new homes often face repeated increases in Pittsburgh real estate taxes. In contrast, areas with active new construction can offset budget needs with additional tax revenue.
Borough and Township Taxes
If you live outside the City of Pittsburgh, you’ll also pay borough or township taxes. These fund local services like police, public works, and infrastructure.
Smaller boroughs like Braddock may charge higher rates due to older infrastructure and limited revenue. Others like Ross Township or Franklin Park typically have lower rates thanks to broader tax bases and more development.
How Tax Increases Affect Residents and Investors
Rising taxes mean more out of pocket costs:
- Homeowners may see higher escrow payments or year-end bills
- Landlords face reduced cash flow and may raise rent to offset costs
In older or slower growing neighborhoods, taxes often rise while home values stay flat. This puts pressure on both owners and renters, especially if wages or rental markets don’t keep pace.
Timeline of Millage Rate Changes in Allegheny County
Here’s a look at recent millage history:
- 2012: Reduced to 4.73 mills after a countywide reassessment
- 2013–2024: Held steady at 4.73 mills
- 2025: Increased by 36% to 6.43 mills
How Often Do School Districts Raise Millage?
While it varies, Allegheny County school districts increased their millage rates by an average of 22% between 2013 and 2024, outpacing inflation. This suggests potential inefficiencies or budget strain in public education funding.
Increased Pittsburgh Real Estate Taxes and millage rates trends to put pressure on homeowners and local business owners, especially in districts without new construction to offset rising costs.
Real World Examples: Homeowners vs. Landlords
🏠 Homeowner Scenario: Ross Township & North Hills School District
Assessed Property Value: $150,000
-
County Millage: 6.43 mills
Calculation: $150,000 × 6.43 / 1,000 = $964.50 -
Ross Township Millage: 2.70 mills
Calculation: $150,000 × 2.70 / 1,000 = $405.00 -
North Hills School District Millage: 20.000 mills
Calculation: $150,000 × 20.000 / 1,000 = $3,000.00
Total Annual Property Tax:
$964.50 (County) + $405.00 (Municipal) + $3,000.00 (School) = $4,369.50
This example illustrates that in Ross Township, a homeowner with a property assessed at $150,000 would pay approximately $4,369.50 annually in property taxes.
🏢 Landlord Scenario: McKees Rocks Borough & Sto-Rox School District
Assessed Property Value: $200,000
-
County Millage: 6.43 mills
Calculation: $200,000 × 6.43 / 1,000 = $1,286.00 -
McKees Rocks Borough Millage: 9.40 mills
Calculation: $200,000 × 9.40 / 1,000 = $1,880.00 -
Sto-Rox School District Millage: 29.900 mills
Calculation: $200,000 × 29.900 / 1,000 = $5,980.00
Total Annual Property Tax:
$1,286.00 (County) + $1,880.00 (Municipal) + $5,980.00 (School) = $9,146.00
In this scenario, a landlord owning a 4 unit in McKees Rocks with an assessed value of $200,000 would face an annual property tax bill of approximately $9,146.00. This significant tax burden could impact rental profitability, especially if rental income remains flat.
In short, you can see the impact specifically as it relates to the differences in borough and school district millage rates compared from the home owner to the landlord above.
Visit here for more information on Allegheny County School Districts – Tax Millage.
How Pittsburgh Compares
Allegheny County has some of the highest effective property taxes in the state. Nearby counties like Butler, Beaver, and Washington tend to have slightly lower millage rates. Cities in Ohio, like Columbus and Cleveland, benefit from more frequent reassessments and lower effective tax burdens.
Learn more about Pittsburgh’s history as it relates to the city’s background and neighborhoods.
💰 Impact of Rising Pittsburgh Real Estate Taxes
The increase in property taxes can place a significant financial burden on both residents and real estate investors. For homeowners, higher taxes mean increased monthly mortgage payments (if taxes are escrowed) or larger lump-sum payments, which can strain household budgets.
For real estate investors, rising taxes can erode profit margins, making properties less attractive investments. This is particularly concerning in areas without new development, where the tax base isn’t expanding to offset increased expenditures. A real estate investor could be faced with delaying updates like a new roof or painting the outside with very slim margins.
In Allegheny County, the recent tax hike reflects broader fiscal challenges, including budget deficits and the need to fund essential services . Without corresponding increases in property values or rental income, these higher taxes can deter investment and impact housing affordability.
Final Thoughts
Understanding Pittsburgh real estate taxes is essential whether you’re buying, selling, or holding property. Each tax layer county, borough, and school affects affordability. As costs rise and values hold steady, many residents are feeling squeezed.
If you’re ready to sell a property burdened by high taxes or distressed real estate, BuysHouses.co can help. We make fair, fast cash offers to homeowners and landlords across Allegheny County. Visit us at: https://buyshouses.co/