Summary
Philadelphia’s Real Estate Tax and Realty Transfer Tax together generate about one-fifth of General Fund revenues, making them the City’s second largest revenue source. While the Real Estate Tax grows relatively steadily with property values and revaluations, the Realty Transfer Tax is far more volatile, responding sharply to interest rates, transaction volume, and high-value commercial sales. Looking ahead, property-related taxes are projected to continue growing through FY30, though increasing reliance on the more volatile Realty Transfer Tax warrants careful monitoring.