 According to the Tax Foundation, Pennsylvania ranked 11th in the U.S. in 2008 in terms of property taxes paid as a percentage of home value (1.34%) and 12th in the country in terms of property taxes as a percentage of income (3.55%).The Act 1 of 2006 Index regulates the rates at which each school district can raise property taxes in Pennsylvania.Districts are not allowed to raise taxes above that index unless they allow voters to vote by referendum, or they seek an exception from the state Department of Education.