Common Level Ratio
A formula called a common level ratio is used to calculate a commercial or residential property’s taxable value. It is a calculation used in appeals to account for the differences between assessed values and current sale prices since the last reassessment in Allegheny County in 2012.
Allegheny County property assessment special appeals filed in 2023 for 2022 and 2023 taxes were based on a common level ratio that was set at 63.53 percent of the property’s current market value. That’s a dramatic drop from the 81.1 percent CLR used previously. We had quite a few clients take advantage of the lowered ratio. Last year we had clients use the even lower CLR of 52.7 percent to greater advantage with their appeals. With the 2027 CLR being lowered to 50.14 percent, this is a great opportunity to lower your property taxes!
What does that mean for you? It means the possibility of significant tax savings. A house that had a fair market value of $100,000 was taxed at a value of $81,100 using the 2021 ratio of 81.1 percent. When the 2024 common level ratio set by the state was dropped to 54.5 percent, that house was taxed at a maximum assessed value of $54,500. With the ratio set at 52.7 percent for 2025, that house was taxed at a maximum of $52,700 for 2025. It was a huge tax savings for the home owner. This year, the CLR will be even lower at 50.14 percent and the property tax savings can be greater!
Property owners need to remember that property assessment appeals may be filed every year in every county in Pennsylvania.