By Josh McKnight | The McKnight Team
Lower Merion officials used the township’s annual budget workshop to deliver a warning. A third straight real estate tax increase could come in 2027. The township raised its rate 6.5% in 2025 and 8% in 2026, ending a decade long freeze at 4.19 mills.
Lower Merion property taxes on the township side are already about 15.0% higher than two years ago. The proposed 2027 budget comes out in early November, with a vote in December.
What Is Driving the 2027 Budget
Township Manager Ernie McNeely listed several pressures. The township spent $1.2 million on storm damage this year, including cleanup from the July 11 microburst that caused significant destruction. Business privilege tax revenue has been running above average, and McNeely expects it to taper off.
Labor is the biggest unknown. Contracts with the township’s two municipal employee unions expire at the end of the year, and 2027 salaries are still being negotiated. Insurance renewals are also unsettled, and those costs can swing a municipal budget quickly.
There is a counterweight. McNeely noted the 2026 budget may finish stronger than projected. So a third increase is possible, not certain. The real answer arrives with the November draft.
Put those together and the picture is clear. The pressures are real, the offsets are uncertain, and nothing is final until December. If you own in Lower Merion, the next three months are when your township budget gets written.
What a Third Hike Actually Does to Lower Merion Property Taxes
The township rate is one line on your bill. The Lower Merion School District and Montgomery County set their own rates, and the school district share is usually the largest. A township increase moves your total, but it does not move it alone. That is why a headline percentage can overstate what you actually pay.
Set that against what the numbers show right now. The typical home value in Bala Cynwyd, one of the postal areas inside Lower Merion, is $695,424, up 4.9% over the past year, per Zillow data through August 31, 2026. Only 41 homes were listed for sale there at the end of August. Across Montgomery County, homes went to pending in a median of about eight days.
Values up 4.9%. Supply thin. Buyers still paying.
Why Tax Trends Hit Both Sides of a Sale
Buyers shop on monthly payment, not just price. Every tax increase adds to that payment, which shrinks what a buyer can offer on the same budget. In a high value township, a small percentage change still lands as real dollars each month. Here is a simple way to think about it. Every dollar added to the annual tax bill is a dollar a future buyer cannot put toward the mortgage.
Sellers feel it second. A listing that carries a rising tax bill has to justify it with condition, location and price. Three straight increases can also become a talking point in negotiations, even when the dollar change is modest.
None of this makes Lower Merion a weak market. Demand is strong, and the Zillow numbers show it. Both things can be true: Lower Merion property taxes are rising, and buyers are still competing for a thin supply of homes.
If a friend is budgeting for a Lower Merion move off last year’s tax bill, send them this.
What This Means for You
If you are selling, pull your current tax bill before you list and be ready to explain it. Buyers will ask, and a clear answer beats a surprise at the closing table. If you are buying, budget for the 2027 rate, not the 2026 one. Ask your lender to run your payment with a higher tax figure so a December vote does not change your plan or your approval.
Tax rates are one piece of the monthly cost of owning a home. The Lower Merion community guide covers how the township market has been moving. We can help you build a real monthly number for any home you are considering.
Thinking about buying or selling in Lower Merion? Let’s talk.
Frequently Asked Questions About Lower Merion Property Taxes
How much have Lower Merion property taxes gone up?
The township portion rose 6.5% in 2025 and 8% in 2026, after a decade long freeze at 4.19 mills. Together, those two increases put the township rate about 15.0% above where it stood before 2025.
Will higher taxes hurt Lower Merion home values?
Not so far. Zillow shows the typical home value in Bala Cynwyd at $695,424, up 4.9% over the past year. Rising taxes can shrink buying power at the margin, but demand has held up.
Should I buy in Lower Merion before the 2027 budget passes?
The budget timing should not drive your purchase, but it should shape your math. Plan your monthly payment around a higher township rate so a December increase does not stretch your finances.
When will Lower Merion decide on 2027 taxes?
The proposed 2027 budget is expected in early November, with a vote in December. Union salary talks and insurance renewals remain open and will shape the final number.
