Pennsylvania lawmakers renew push to scrap school property taxes, raise sales, income taxes
Pennsylvania lawmakers renew push to scrap school property taxes, raise sales, income taxes # Pennsylvania lawmakers renew push to scrap school property taxes, raise sales, income taxes "This is the No.
thecooldown.com · Wyatt Fischer · September 7, 2026
Pennsylvania lawmakers renew push to scrap school property taxes, raise sales, income taxes
# Pennsylvania lawmakers renew push to scrap school property taxes, raise sales, income taxes
"This is the No. 1 issue I hear from constituents."
by Wyatt Fischer September 7, 2026
Photo Credit: iStock
Pennsylvania lawmakers are once again advancing a major tax overhaul that would eliminate school property taxes and replace that revenue with higher sales and income taxes.
For homeowners frustrated by rising tax bills, the proposal may sound like long-awaited relief. For shoppers, workers, retirees, and school districts, however, the tradeoffs could be significant.
### Here's what to know
Under companion bills introduced by York County Republicans state Sen. Dawn Keefer and state Rep. Wendy Fink, school property taxes would be eliminated statewide, according to TribLive. To replace that revenue, the legislation would raise the sales tax from 6% to 8% and the personal income tax from 3.07% to 4.95%.
The plan would also broaden the personal income tax to cover certain retirement income that has not already been taxed, while leaving Social Security and pensions for federal employees exempt. Keefer's Senate Bill 962 and Fink's House Bill 1649 have both been sent to finance committees.
Fink has framed the measure as a "tax shift," not a tax cut.
"This is the No. 1 issue I hear from constituents," she said. "It's an issue not just for seniors or those on fixed incomes, but young people as well. We all know 30-somethings living in mom's basement because they can't afford to leave."
Backers say the change would fund schools with a broader tax base rather than relying so heavily on property owners.
### More background
The issue is resurfacing as Pennsylvania remains under pressure to resolve deeper problems in public education funding. A 2023 Commonwealth Court ruling declared the state's school funding system unconstitutional, drawing renewed scrutiny to the way districts generate revenue.
Local tax pressures have also intensified. A judge ordered Allegheny County to start a countywide reassessment by 2027 and finish it by 2032. Separately, TribLive reported that more than half of the county's 43 school districts raised property taxes, with officials citing shrinking tax bases and rising operating costs.
According to the state's Independent Fiscal Office, Pennsylvanians paid $17.9 billion in school property taxes during the 2024-25 school year, and that total is projected to climb to $19.6 billion in 2027-28.
Still, critics warn that eliminating property taxes could simply shift the burden elsewhere, especially if more of the cost lands on everyday purchases and workers' paychecks.
### What's being done?
Supporters are trying to build momentum through public meetings and online outreach. TribLive reported that an informational session on the proposal is set for Sept. 17 at Wesley Hall at Jumonville Retreat in Hopwood, Fayette County, after meetings in York and Lancaster. The lawmakers have also launched a website explaining how the shift would affect tax bills.
Keefer said: "Pennsylvania homeowners deserve real relief from school property taxes. My Senate Bill 962 would eliminate school property taxes and create a fairer, more sustainable way to fund public education without placing the burden primarily on homeowners and renters."
Some people involved in school finance are not persuaded. Dylan Wyatt, advocacy director for the Pennsylvania Association of School Business Officials, said property taxes remain valuable because they provide stability and preserve local control.
"School districts rely on property taxes because they provide a stable, predictable and locally controlled revenue source that can respond to changing community needs and costs," Wyatt said.
Efforts like this have been proposed for years. Similar plans have lingered for decades, including a 2015 bill that fell short on a Senate tiebreaker.
The legislation remains only a proposal.
"It is a complex issue," Fink said. "I don't think there's an easy fix because if there was, it would already be done."
### Where can I learn more?
Decisions made in Harrisburg and other state capitals can affect household budgets in all kinds of ways, not just through property taxes. Coverage from Pennsylvania and around the country looks at how officials and utilities are weighing new costs, shifting who pays, and grappling with affordability concerns.
• In New York, Gov. Kathy Hochul backed a new vape tax alongside tighter rules on e-cigarettes.
• In Wisconsin, lawmakers debated new legislation targeting a major issue with potentially significant financial consequences for residents.
• In California, a state housing law sparked warnings over affordability and cost savings tied to future home construction.
When a government changes how money is raised, the costs usually land somewhere else. That's part of the debate in Pennsylvania, where scrapping one major tax could mean more pressure on shoppers, workers, or retirees.