Real Estate Tax (Property Tax)

• Residents of Montgomery Township pay, on average $414.42 in property taxes.

• The average assessment of a Township home is $166,432.

• Average assessment does not equal market value.

• Montgomery Township levied property taxes totaling 2.49 mills, or 0.249%, depending on the value determined by the Montgomery County Board of Assessment of an individual's home.

Elected Official, Real Estate Tax Collector

Current Elected Real Estate Tax Collector:

Patricia Gallagher

215-996-9999

TGallagher@MontgomeryTwp.org 

Click here for the March 1, 2024 Letter from the Tax Collector.

Earned Income Tax

• Montgomery Township instituted a 1.0% Earned Income Tax (EIT) in 2003.

• This tax is levied on all residents of Montgomery Township, regardless of where they work.

• Individuals working in Montgomery Township who live in another municipality that does not collect Earned Income Tax pays the Earned Income Tax to Montgomery Township.

• Individuals living and working in municipalities without an Earned Income Tax are not taxed.

Berkheimer Tax Innovations

Phone: 866-701-7206

Local Services Tax

• Not to exceed $52 a year

• Payroll withholding tax

• This tax may be used solely for the following purposes: emergency services, which includes emergency medical services, police services, and/or fire services; road construction and/or maintenance; reduction of property taxes; or property tax relief through implementation of a homestead and farmstead exclusion

Berkheimer Tax Innovations

Phone: 866-701-7206

Mercantile Tax, Business Privilege Tax, Wholesale Tax, and Amusement Tax

• This tax is a gross receipts tax with an annual twenty-five-dollar ($25) licensure fee requirement.

• In general, the "gross receipts" or "gross volume of business" upon which the tax is imposed is the value of all cash, credits, or property received by a person which is attributable to the carrying on of business in the Township, undiminished by any costs of doing business, including both services, labor, and materials.

• Every person engaged in a business, trade, occupation, or profession in the Township shall pay an annual business privilege tax for each calendar year at the rate of 1 1/2 (1.50) mills on each dollar of the gross volume of business transacted by them during the license year.

• Wholesale vendors or dealers in goods, wares, and merchandise of every kind, at the rate of 1/5 (0.2) of a mill on each dollar of the gross volume of business transacted by them during the license year.

• Retail vendors or dealers in goods, wares, and merchandise of every kind and all persons engaged in conducting restaurants or other places where food, drink, or refreshments are sold, at the rate of 1 1/2 (1.50) of a mill on each dollar of the gross volume of business transacted by them during the license year.

• Wholesale and retail vendors or dealers in goods, wares, and merchandise of every kind at the rate of 1/5 (0.2) mill on each dollar of the gross volume of wholesale business transacted by them during the license year, and retail vendors or dealers in goods, wares, and merchandise of every kind at the rate of one and 1 1/2 (1.50) mill on each dollar of gross volume of retail business transacted by them during the license year.
  • Amusement Tax License - Initial License $60
  • Amusement Tax License - Annual renewal $30
  • Amusement Tax License - Temporary Business $30
  • Amusement Tax Rate = 4% of Green Fees (Golf Course Only)
  • Amusement Tax Rate = 5% of coin or token-operated mechanical devices and/or other amusements

Berkheimer Tax Innovations

Phone: 866-701-7206

Real Estate Transfer Tax

• The Pennsylvania real estate transfer tax is imposed at a rate of one percent on the value of real estate (including contracted-for improvements to property) transferred by deed, instrument, long-term lease, or other writing.

• This one percent is split equally between Montgomery Township and North Penn School District.

• Both the grantor and grantee are held jointly and severally liable for payment of the tax.

• Collections from the Real Estate Transfer Tax are affected by the number of properties transferred in each period and their sale value. Some significant influencing factors on revenue are fluctuations, market conditions, and time of year.

Montgomery County Recorder of Deeds