What is a “circuit breaker” tax?

A “circuit breaker” tax is an income-based tax relief program in Pennsylvania. This program is designed to reduce property taxes for low-income households. To qualify, households must meet certain income and property requirements. Once approved, the monthly property tax bill is reduced by a certain percentage. The percentage depends on the household’s total income and number of people in the home. For example, a family of four with an income of $25,830 or less may be eligible for a circuit breaker credit of up to $1,200. To receive the full benefit, the household must meet the requirements of both the state and local taxing body. In addition, Pennsylvania homeowners can also apply for the homestead exemption. This program provides tax relief for eligible Pennsylvanians by allowing them to deduct a percentage of the property’s assessed value from their annual tax bill. The homestead exemption applies to primary residences only. The circuit breaker tax program and the homestead exemption are designed to help reduce the financial burden of owning a home in Pennsylvania. By providing eligible taxpayers with tax relief, these programs make it easier for Pennsylvanians to keep up with their mortgage payments and property tax bills.

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What is a “circuit breaker” tax?

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