If the region’s five largest nonprofits had to pay taxes, they would together annually contribute about $133 million to Pittsburgh, Allegheny County and Pittsburgh Public Schools, according to the Keystone Research Center.
The Harrisburg-based research center this week released a report detailing how much the taxing bodies would rake in if major nonprofits — particularly UPMC, Highmark, the University of Pittsburgh, Carnegie Mellon University and Duquesne University — did not have tax exemptions.
In total, the county would generate nearly $27 million in property taxes each year from the so-called “Big Five” nonprofits, which hold over half the tax-exempt property in the city and county, according to the report.
The city would bring in an extra $36.5 million each year from those five nonprofits, plus almost $1.9 million in city parks tax revenue.
The school district each year loses out on more than $39.5 million because of tax exemptions for those same nonprofits, the research center found.
The tax exemption also shields nonprofits from paying a .55% payroll tax levied by the city of Pittsburgh. The Keystone Research Center estimated the city would make about $27.3 million from payroll taxes on major hospitals and universities if it could tax them.
‘Come together’
The report highlighted how residents are forced to shoulder tax hikes, even as major nonprofits can’t be compelled to pay taxes. The city, county and school district have all raised taxes in the last two years.
“As it stands, residents across the city and county face a higher tax burden to maintain the resources that these large nonprofits rely on,” the report said. “The city, county and school district have all recently had to raise property tax rates to close budgetary gaps and pay for human services, police, teachers, and more.”
Elected officials for years have tried to find a way to bring in more money from nonprofits. Many advocate for long-term payments in lieu of taxes, known as PILOTs, but such deals have remained elusive.
UPMC in January donated $10 million to the city to buy ambulances this year and next. The gift will pay for nine new ambulances and a rescue truck this year and roughly the same amount of new vehicles next year, Pittsburgh Mayor Corey O’Connor said.
If UPMC had to pay its full property tax bill, it would contribute about $16 million to the city each year, according to the research center.
“UPMC’s recent $10 million donation for ambulances was a welcome contribution, but it represents a fraction of what these institutions would owe every year if they were taxed like for-profit companies,” Diana Polson, Pittsburgh Policy and Research Director for Keystone Research Center and co-author of the report, said in a news release.
“The Big Five should come together with city and county leaders to decide how to contribute more meaningfully and reliably to the communities they depend on so Pittsburgh families aren’t shouldering all the burden.”
What the nonprofits say
Several of the big nonprofits issued statements.
UPMC spokesman Paul Wood said the health care giant’s contribution to the city’s fleet “reflects UPMC’s longstanding commitment to the city and builds on decades of civic partnership.”
“UPMC also intends for this contribution to serve as a catalyst for broader collaboration, encouraging other nonprofit and private-sector partners to support the city’s essential services and long-term stability,” he said.
Carnegie Mellon University spokesman Chuck Carnegie said the university “remains open to discussing how we can best contribute to our shared responsibility to maintain Pittsburgh’s vitality.”
The University of Pittsburgh generates $6.6 billion in economic impact annually in Pennsylvania and $1.8 billion in the city of Pittsburgh, according to spokesman Jared Stonesifer.
“The University of Pittsburgh is a significant, steadfast economic engine for the city and a dedicated community partner, anchor, and collaborator,” he said in a statement Wednesday.
Other nonprofits mentioned in the report did not immediately respond to requests for comment.
Pressing need
Pittsburgh, facing serious financial pressures, raised property taxes by 20% in its 2026 budget. The city ended last year with an $8.6 million budget deficit and drained about $44 million from its reserve fund.
Pittsburgh Public Schools officials approved a 2% tax hike in their 2026 budget. Even with that, district officials projected a $5.7 million operating deficit this year.
Allegheny County kept its tax rate steady this year after a 36% tax jump took effect last year.
“The need for additional revenue from large tax-exempt institutions is becoming more urgent,” the report said.
A PILOT that saw the area’s five largest nonprofits paying half of what they would pay in taxes if they were for-profit entities would generate about $67 million in additional revenue for the city, county and school district combined, the report said.
UPMC and Allegheny Health Network, which is part of Highmark, have a similar arrangement in Erie, the research center noted.
