Should I Buy in Northeast Philly or Bensalem?

by Nick Rau

Clients often ask me to settle one debate: the far edge of the city, or just past the city line in Bensalem? Recently, the median sale price was about $430,000 in Somerton and $425,000 in Bensalem (both over the three months ending in September), according to Redfin. The houses cost about the same. The tax math doesn't: Philadelphia charges a 3.735% wage tax on residents and a 4.578% transfer tax, and gives owners a $100,000 Homestead Exemption, while Bensalem, in Bucks County, charges a 1% earned income tax and 2% transfer tax.

So the better buy depends less on the house and more on where you work, how long you'll stay and how much cash you bring to closing. Here's the side-by-side, plus one deadline Philly buyers shouldn't miss: Dec. 1, 2026.

Same price range, different tax bills

Somerton and Bensalem make a fair test because they sit side by side and sell in the same price range. Redfin put Somerton's median sale price at $429,880 and Bensalem's at $424,798 over the three months ending in September, up 7.5% and 4.9% from a year earlier.

Wage tax: the biggest yearly difference

Philadelphia's wage tax is 3.735% for residents, wherever they work, and 3.425% for non-residents who work in the city. Bensalem residents don't pay Philly's resident rate. Instead they pay Bensalem Township's earned income tax, a combined 1% for residents (the township's 1%, with no separate school district share, per the state's Act 32 rate register), collected by Keystone Collections Group.

Example (for illustration, $100,000 of wages):

• Live in Somerton, work anywhere: 3.735% Philly wage tax = $3,735 a year.
• Live in Bensalem, work outside Philadelphia: 1% Bensalem earned income tax = $1,000 a year. Net difference: $2,735 a year less than the Somerton example.
• Live in Bensalem, work in Philadelphia: you'd pay the 3.425% non-resident wage tax on that city pay, $3,425, which is $310 less than the resident rate. Pennsylvania generally credits Philadelphia wage tax paid against your local earned income tax, so you usually wouldn't pay both in full, but confirm with a tax professional.

Your own numbers depend on your pay, where each person in the household works and any remote days, so treat this as a starting point, not tax advice.

Transfer tax and property tax

At closing: transfer tax. Philadelphia's realty transfer tax is 4.578% (3.578% city plus 1% state). On a $430,000 home that's $19,685.40, or $9,842.70 for the buyer if the agreement of sale splits it 50/50. In Bensalem it's 2% (1% state, 1% local), so a $425,000 home carries $8,500 in total, or $4,250 for the buyer's half. That's about $5,600 more cash a Philly buyer needs on day one, and I broke down who pays it in my post on transfer tax in Bucks County vs. Philadelphia.

Every year: property tax. Philadelphia taxes real estate at 1.3998% of assessed value (the rate phila.gov lists for the 2025 tax year, still in effect when this was checked Oct. 27, 2026), and the Homestead Exemption takes $100,000 off that value for owners who live in the home, worth up to $1,399 a year. On a home assessed at $430,000 (an assessment equal to the $430,000 price is an assumption; check the home's OPA value), that's about $4,619 a year with Homestead, or $6,019 without it. Bucks County still uses 1972-based assessments, so assessments in Bensalem are far lower than sale prices. For this example I used the district's median homestead assessment, $23,200, per its 2026-27 state budget filing, which isn't tied to a $425,000 home. At Bensalem's combined 2026 rate of 241.5974 mills (county, township and school district, per the Bucks County 2026 millage table), that's about $5,605 a year, or roughly $5,273 after the district's $1,755 homestead exclusion. In this example the Philly bill runs roughly $650 a year less. Your own bill depends on the specific home's assessment, so always check the actual tax line on the listing.

Car insurance. Auto rates are set partly by ZIP code, so they can differ between a 19115 or 19116 address and Bensalem's 19020. I haven't found a current, ZIP-level public comparison I'd stand behind, so get quotes for both addresses with the same car and coverage before you decide.

When Somerton makes more sense

Somerton tends to win if you work in the city, want the lower property tax bill and plan to stay long enough for the Homestead savings to add up. If you're buying in Philadelphia this year, apply for Homestead by Dec. 1, 2026 to see it on your 2027 bill. The city also says buyers who settle between Dec. 2 and Dec. 31 can still apply. My guides to Somerton, Fox Chase and Northeast Philadelphia neighborhoods go street by street.

When Bensalem makes more sense

Bensalem tends to win if you work outside the city, want to keep more cash at the closing table, or plan to move up again in a few years, since you'd pay transfer tax again on the way out. In our $100,000 example, for someone who works outside the city, the $2,735 wage tax difference outweighs the roughly $650 property tax difference by about $2,080 a year, on top of about $5,600 less transfer tax at closing. My Bensalem guide is a good place to start.

What I'd do, and the mistakes to avoid

Before you pick a side of the line, write down four numbers for each home you love: the buyer's share of transfer tax, the actual annual property tax, your household's wage or earned income tax, and a car insurance quote for that address. Then add them up over the years you expect to stay. Common mistakes include comparing nothing but list prices, assuming a Philly tax bill already includes Homestead (it doesn't until the owner applies, and a new owner has to apply), comparing millage rates instead of dollar bills, and forgetting that where each person works decides the wage tax math. Every number here can change with the specific home, your job and your contract, so confirm your figures with your lender, your title company, your insurance agent and a tax professional.

Quick answers

Is it cheaper to live in Northeast Philly or Bensalem?

It depends on where you work. Somerton's median sale price was about $430,000 and Bensalem's about $425,000 over the three months ending in September, per Redfin. A Philly home with Homestead can carry a lower property tax bill, but Philadelphia residents pay a 3.735% wage tax and a 4.578% transfer tax, compared with Bensalem's 1% earned income tax and 2% transfer tax.

What is Bensalem's earned income tax?

1% for residents, set by Bensalem Township, with no separate school district share, and collected by Keystone Collections Group.

Do I pay Philadelphia wage tax if I live in Bensalem?

Yes, but just on pay for work done in Philadelphia, at the non-resident rate of 3.425%. Philadelphia residents pay 3.735% no matter where they work.

When is the Philadelphia Homestead Exemption deadline?

Dec. 1, 2026, to get the benefit on your 2027 bill. It takes $100,000 off your home's assessed value, worth up to $1,399 a year, and buyers who settle between Dec. 2 and Dec. 31 can still apply.

Note from Nick

I often get clients debating the far edge of the city versus just outside the city limits in Bensalem. There's a lot to consider, and when it's all said and done, it comes down to what's most important to you. But here's the math. Tell me which side of the line you're leaning toward.

I'm Nick Rau, President of Sales with the Rarity Real Estate Team, ranked in the Top 1% of agents nationally (RealTrends 2025, individual), with more than 135 Google reviews, and I live right here in Bucks County.

Rarity Real Estate Team, 1100 N Delaware Ave Suite A, Philadelphia, PA 19125 · (215) 593-7498 · [email protected]

Weighing a home in Northeast Philly against one in Bensalem and want the side-by-side done for your own numbers? Call (215) 593-7498 or email [email protected].

Blog · Google · Zillow · Instagram @nickraure · Facebook · LinkedIn · X · Threads

File photo, not a specific home or sale: the stone bank barn at Fox Chase Farm in Northeast Philadelphia on a fall afternoon. Photo (cropped): Hshuvaeva, CC BY-SA 3.0, via Wikimedia Commons.

Sources (checked Oct. 27-28, 2026): City of Philadelphia, Wage Tax (3.735% resident, 3.425% non-resident, current rates, checked Oct. 28, 2026); Bensalem Township Code, Ch. 210 Art. IX, Earned Income Tax (1% resident, combined rate 1%); Pennsylvania DCED, PSD Codes and EIT Rates (Bensalem Twp 090101: 1% resident, school district 0%, collector Keystone Collections Group); City of Philadelphia, Realty Transfer Tax (3.578% city + 1% state = 4.578%); City of Philadelphia, Real Estate Tax (1.3998%); City of Philadelphia, Get the Homestead Exemption and Department of Revenue, June 22, 2026 ($100,000 off assessed value, up to $1,399; apply by Dec. 1, 2026 for 2027; Dec. 2-31 settlements may still apply); Bucks County Recorder of Deeds, Transfer Tax (2%); Bucks County 2026 Millage Rates, 7/1/2026 (Bensalem: county 29.65, township 23.00, school 188.9474, total 241.5974); Pennsylvania Department of Education, Bensalem Township SD 2026-27 Final General Fund Budget (median homestead assessment $23,200; homestead exclusion $1,755 assessed value); Redfin, Somerton housing market (median $429,880, three months ending Sept. 2026, +7.5% YoY); Redfin, Bensalem housing market (median $424,798, three months ending Sept. 2026, +4.9% YoY).