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Updated 2025 Tax Year

Lebanon County
Property Tax Guide

Everything you need to know about property taxes in Lebanon County, PA. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Quick Facts
Tax Rate
15-20 mills combined (varies by municipality and school district)
Exemptions
5+ Available
Section 1

How Property Tax Works

Lebanon County's property tax system funds essential local services including public schools, county government operations, municipal services, and infrastructure maintenance. Property taxes are levied based on assessed values determined by the county assessor's office, with rates varying significantly by location within the county due to different school districts and municipal boundaries.

The county operates on a millage system where rates are expressed as mills (1 mill = $1 per $1,000 of assessed value). For the 2025 tax year, property owners can expect combined rates ranging from approximately 15-20 mills countywide, though specific rates depend on your municipality and school district. The median residential property value in Lebanon County is $191,150 as of January 2026, with total taxable real estate valued at over $2.7 billion. Property owners should note that tax rates and special assessments can vary considerably between different taxing districts within the county.

Section 2

What Makes Up Your Tax Bill

Component2025 Rate (Mills)Description
County Tax6.4300Funds county government services, courts, emergency services
Municipal Tax4.5000*City/township services, police, fire, public works
School District TaxVaries**Local school district operations and facilities

*Municipal rates shown are average - actual rates vary significantly by municipality within Lebanon County **School district rates vary widely across the county's multiple school districts and are not included in the provided county millage

Total Combined Rate for 2025: Approximately 15-20 mills depending on specific location within Lebanon County

These rates apply to the 2025 tax levy year. Property owners will see variations based on their specific municipality and school district. Additional special assessments may apply for services like fire protection, library districts, or municipal authorities depending on location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Lebanon County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes are additional property tax bills issued when there are changes in property ownership, value, or use during the tax year. In Lebanon County, supplemental taxes are most commonly triggered when real estate transfers occur or when new construction is completed and added to the tax rolls.

When property changes hands, a Statement of Value must be filed with the deed transfer. The county assessor reviews this information and may issue a supplemental tax bill if the property's assessed value needs adjustment based on the sale price or if previous exemptions no longer apply to the new owner. For example, if a property previously qualified for a homestead exemption under the prior owner but the new owner doesn't qualify, a supplemental tax would be issued for the difference. These supplemental bills are prorated based on the portion of the tax year remaining after the triggering event occurs.

Example Calculation

Example 1: $300,000 Home

  • Assessed Value: $300,000
  • Homestead Credit Applied: Limits assessment increases only*
  • Net Taxable Value: $300,000
  • Combined Tax Rate: 18.0 mills (estimated)
  • Annual Tax: $5,400
  • Monthly Escrow: $450

Example 2: $600,000 Home

  • Assessed Value: $600,000
  • Senior Citizens Credit Applied: -$1,000 (if qualified)*
  • Net Taxable Value: $600,000
  • Combined Tax Rate: 18.0 mills (estimated)
  • Annual Tax Before Credit: $10,800
  • Annual Tax After Credit: $9,800
  • Monthly Escrow: $817

Example 3: $1,000,000 Home

  • Assessed Value: $1,000,000
  • No Credits Applied
  • Net Taxable Value: $1,000,000
  • Combined Tax Rate: 18.0 mills (estimated)
  • Annual Tax: $18,000
  • Monthly Escrow: $1,500

*All credits require separate applications and are not automatic. Homestead credits primarily cap assessment growth rather than reducing current taxes.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Lebanon County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender collects monthly tax payments along with principal and interest, depositing these funds into an escrow account. The lender then pays your property taxes directly to Lebanon County when bills are due.

Lenders typically collect 1/12 of your estimated annual tax bill each month, plus a small cushion (usually 2 months) to account for rate increases. After taxes are paid, lenders must provide an annual escrow analysis showing account activity. If there's a shortage due to tax increases, you may need to pay the difference or accept higher monthly payments. Conversely, overages above $50 must be refunded to you. Property owners should verify that their lender has current tax information and is paying the correct amounts to avoid delinquency issues.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Lebanon County property taxes due for the 2025-2026 tax year? A: Property taxes are typically due April 15 annually. However, specific due dates can vary by municipality within Lebanon County, so check with your local tax collector.

Q: What tax credits are available and how do I apply? A: Common credits include homestead/farmstead credits for primary residences and senior citizen credits. All credits require separate applications - they are not automatic. Contact the Lebanon County Assessment Office for applications and deadlines.

Q: How does the homestead credit work? A: The homestead credit caps assessment increases rather than reducing your current tax bill. You must file an application to qualify, and it only applies to your primary residence. This helps limit tax increases when property values rise significantly.

Q: How often are properties reassessed in Lebanon County? A: Pennsylvania requires counties to maintain assessments at fair market value, but Lebanon County hasn't had a county-wide reassessment in recent years. Individual properties may be reassessed when they sell or undergo major improvements.

Q: How do I appeal my property assessment? A: Assessment appeals must be filed with the Lebanon County Board of Assessment Appeals. Appeals are typically due by the first Monday in August, but check current deadlines as they may vary.

Q: What are the penalties for late property tax payments? A: Late payments incur interest and penalties. Properties with delinquent taxes may eventually be subject to upset sale - Lebanon County typically holds these sales in September.

Q: Can I pay my property taxes online? A: Payment options vary by municipality within Lebanon County. Contact your local tax collector or check the Lebanon County website for available online payment systems.

Q: Why do tax rates vary within Lebanon County? A: Different municipalities and school districts within the county set their own tax rates. Your total bill includes county, municipal, and school district taxes, which vary by location.

Q: What happens if I miss the application deadline for tax credits? A: Most credits cannot be applied retroactively if you miss deadlines. You'll typically need to wait until the next application period, so apply early to ensure processing time.

Q: How can I verify my tax bill is correct? A: Review your tax bill for the correct millage rates for your municipality and school district. Contact the Lebanon County Assessment Office if you notice discrepancies in assessed value or applied credits.

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