Common State and Local Taxes in Montgomery County
(Not including income taxes.)
The state of Pennsylvania and all of its counties, townships, boroughs, cities, and school districts collect taxes. Here are some common examples of these taxes. These examples do not include income taxes, which you learn about separately.
State Taxes in Pennsylvania
Sales Tax: 6%. Note: Food (except in restaurants), clothing, medicine, and some other items are exempt from this tax. Philadelphia County and Allegheny County add an additional 1% sales tax to goods and services purchased in those counties.
Real Estate Transfer Tax: 1% of the sale price of a home. Only taken when a home is sold, the buyer and seller each pay half of this tax.
Gasoline Tax: 12 cents per gallon.
Cigarette Tax: 6.75 cents per cigarette ($1.35/pack) sales tax is then added to the total cost.
Alcohol Tax: 18% added to the price of hard liquor and wine before sales tax.
Beer Tax: 8 cents per gallon (4.5 cents per six-pack).
Property Taxes
A. Montgomery County Property Taxes(2.84 mills)
Property taxes (also called real estate taxes) are usually assessed in mills. A tax rate of 1 mill means that the tax is assessed at $1.00 for every $1000 of the assessed value of the property every year. In Montgomery County real estate is supposed to be assessed at full market value (how much the property could actually be sold for). Let’s look at an example: Your home is assessed at $350,000. The Montgomery County real estate tax rate is 2.84 mills, so the tax is $2.84 for every $1000 your home is worth. Your tax would be $2.84 X 350 = $994 per year.
What would the Montgomery County property tax be if your home were assessed at $260,000?
______X ______= ______
B. Municipal Property Taxes (city, township, borough, and school district, in addition to Montgomery Co. property tax)
Lansdale Borough – 20.2245 mills
School Taxes: 19.2315 mills to the North Penn School District.
Other Property Taxes: .993 mills. Lansdale Borough uses this for many purposes.
Towamencin Township – 21.5395 mills
School Taxes: 19.2315 mills to the North Penn School District.
Other Property Taxes: 2.308 mills. Towamencin Township uses this for many purposes.
OTHER LOCAL TAXES
Real Estate Transfer Tax:
- 1% of the price of a home, only taken when a home is sold
- Half of this tax goes to Towamencin Township and half goes to NPSD.
- Thisis in addition to the real estate transfer tax charged by the state (at the top of the page) and works exactly the same way (half paid by seller/half paid by buyer).
Emergency and Municipal Services Tax (TowamencinTownship only): $52.00. This is a flat tax paid by all residents.
Occupational Privilege Tax (Lansdale Borough only): $10.00. This is a flat tax paid by all residents.