How Property Taxes Are Calculated

Chester County uses a millage rate system. One mill equals $1 of tax per $1,000 of assessed value. Your actual tax bill is calculated as:

Annual Tax = Assessed Value x Combined Millage Rate / 1,000

Important nuance: Assessed value in Chester County is not the same as market value. Chester County has not conducted a countywide reassessment in many years, which means assessed values can be substantially lower than market values — often 30%–40% of market value on older sales. However, assessed values are updated on transfers (sales), meaning a recently sold property may have a higher assessed value than a neighboring property that has not changed hands in 20 years.

The Three Layers of Chester County Property Tax

• County tax: The 2025–2026 Chester County millage rate is 5.164 mills. This rate is the same for every property in the county.

• Municipal tax: Each township and borough sets its own millage rate independently. These vary from under 1 mill in some townships to several mills in others.

• School district tax: The largest single component of the tax bill. School district millage rates across Chester County range from approximately 23 to 47 mills depending on the district.

Combined Rate Examples in Chester County

To illustrate the range of combined effective rates in Chester County:

• West Goshen Township (West Chester Area School District): Combined millage approximately 43.76 mills

• Kennett Township (Kennett Consolidated School District): Combined millage approximately 46.66 mills

• Westtown Township (West Chester Area School District): Township millage 3.92 mills (plus county and school district)

• West Chester Area School District school tax rate for 2025–26: 23.38 mills the lowest in both Chester County and Delaware County

The practical implication: two homes with identical market values priced at $550,000 can carry very different annual tax bills depending on their township and school district. A $550,000 home at a combined 40-mill rate carries an annual tax of approximately $8,800 (at 40% assessment ratio). The same home at a 50-mill combined rate carries approximately $11,000/year. That $2,200 difference is $183/month meaningful in an affordability calculation.

Homestead Exemption

Pennsylvania's Homestead Property Tax Exclusion allows school districts to reduce the assessed value of primary residences for tax purposes, providing modest relief. This must be applied for through the Chester County Assessment Office and is only available for your primary residence.

Property Tax Due Dates

Property taxes in Pennsylvania are billed by separate entities on different schedules. County taxes are due by July 31 (with a 2% discount if paid early) and have a final deadline of October 31. School district taxes are typically billed in July for the academic year. Municipal taxes vary. Your lender's escrow account will collect 1/12 of the estimated annual taxes each month and pay the bills on your behalf.