Uwchlan Tax Hike 2026—Exton Impact

Uwchlan Township projected an $854,000 deficit for 2026, stemming from a $766,000 shortfall in Earned Income Tax revenue linked to non-resident wages from one major employer, making a notable impact in the area's fiscal landscape. This isn't caused by overspending but rather a specific payroll revenue drop, leading to the first real estate tax increase since 1989. The approved budget from Dec 8, 2025, raises the general fund millage from 0.085 to 0.300, hydrant tax from 0.055 to 0.125, maintains EMS tax at 0.300, and adds a new fire tax of 0.300 mills, resulting in a total millage of 1.025—still among Chester County's lowest. Fee hikes include trash from $95 to $110 per quarter (+$60/year) and sewer from $125 to $150 per quarter (+$100/year), resulting in $160/year in additional costs before millage effects. This rebalancing pays or operating costs and infrastructure, but it’s a sign Uwchlan is moving away from its long-standing low-tax identity.

This adjustment is likely to trigger a temporary slowdown in local market velocity, similar to patterns seen in past cycles where unexpected municipal increases created short-term buyer hesitation. In areas like Exton and the Uwchlan, where property taxes and fees directly influence escrow calculations, the added $30–$50/month burden could reduce qualifying power for entry-level and move-up buyers, leading to a 15–20% dip in sales pace over Q1 2026. However, historical precedents in Chester County show this type of thing often resolves within 6–9 months as buyers adapt, especially if the employer-linked revenue recovers or township services visibly improve. The key dynamic here is a collective unease about escalating costs, prompting delayed decisions.

Predictively, the market will rebound stronger by mid-2026 if the deficit proves to be a one-time thing, with values stabilizing or rising 3–5% as the low millage relative to county averages reasserts itself. Persistent shortfalls, however, could prolong the hesitation, suppressing demand in rural or edge properties and creating opportunities for investors in multi-family units near Exton rail. Overall, this event underscores how external shocks amplify underlying tensions, but the area's strong fundamentals will speed up the recovery.

Let’s move Pennsylvania forward.