Take advantage of tax breaks as a senior
When it comes to property taxes, retirees often find themselves in a unique position. While home values continue to increase — and with them, property taxes — retirees’ incomes do not.
Several states have taken steps to ease this particular tax burden for seniors.
Here’s how the property tax exemption for seniors works, and how to know if you qualify for one.
Find your lowest mortgage rate. Start hereIn this article (Skip to...)
- What is a property tax exemption for seniors?
- How property tax exemptions work
- How to qualify for a senior tax exemption
- How to claim your senior tax relief
- Examples of property tax exemptions by state
- Property tax exemption for seniors FAQ
What are senior property tax exemptions?
A senior property tax exemption reduces the amount seniors 65 years of age or older have to pay in taxes on properties they own.
Property taxes are quite possibly the most widely unpopular taxes in the U.S. And for retirees, they create a unique problem — as property taxes increase over time but incomes may not.
Find your lowest mortgage rate. Start hereStates have responded to this issue by enacting tax relief policies for certain homeowners, including senior citizens.
But states aren’t always proactive in getting seniors the help they need.
The state, county or city agency that collects your property taxes usually doesn’t tell you that you qualify for a homeowner exemption. You have to find out for yourself whether you qualify.
In fact, the state, county or city agency that collects your property taxes usually doesn’t tell you that you qualify for an exemption.
Instead, you yourself have to figure out whether you’re eligible, and then request the tax deduction you qualify for.
Here’s how to do that.
How the property tax exemption for seniors works
The first thing to know is that property tax exemptions don’t have any effect on the tax rate. And, they typically don’t come off your tax bill.
Instead, they usually reduce the value of your home that’s subject to taxation.
Check your mortgage eligibility. Start hereSome areas offer a certain percentage off home market values, while others offer dollar amounts.
Tax savings from exemptions will vary widely depending on where you live, the taxable value of your home, and what you qualify for.
You will need to find out the property exemptions that are offered in your area and then apply for them.
How to qualify for a property tax exemption for seniors
Property tax rules vary considerably from state to state. Seniors who meet state guidelines can take advantage of an exemption. For example, most states include these two rules to qualify:
- The property owner must meet the minimum age for a senior property tax exemption
- The person claiming the exemption must prove occupancy and live in the home as their primary residence
The minimum age requirement for senior property tax exemptions is generally between the ages of 61 to 65.
Check your mortgage eligibility. Start hereWhile many states like New York, Texas and Massachusetts require seniors be 65 or older, there are other states such as Washington where the age is only 61.
In New Hampshire, although you’ll need to be 65 or older, you’ll also benefit from an increased tax exemption as you age.
Many locations set income limit requirements as well. Earning too much may disqualify you, or the amount of your exemption will be reduced.
Most states have an official government website dedicated to taxes, revenue, or finance that will list the local rules for senior property tax exemptions.
A Google search for “senior property tax exemptions [state]" should turn up yours.
How to claim your senior property tax relief
It’s important to file for your senior tax exemption by the deadline imposed by your state. Each state has different deadlines.
Most states have websites where you can find the deadlines for filing, along with the necessary forms and instructions.
Check your mortgage eligibility. Start hereMost states have websites where you can find the deadlines for filing, along with the necessary forms and instructions.
Senior tax exemption applications are typically filed with your local county tax office.
While most states offer basic exemptions for those taxpayers that qualify, your county may offer more beneficial exemptions.
Whether you are filing for exemptions offered by the state or county, you should contact the tax commissioner or the county assessor’s office for additional information or clarification about qualifying for tax exemptions.
Examples of property tax exemptions for seniors by state
While most states offer some form of real estate property tax exemption for seniors, some local governments are more kind than others.
Check your mortgage eligibility. Start hereAlaska, New Hampshire, and Tennessee bear some of the lowest overall state and local tax burden in the U.S.
Neither of these three states has any state income taxes. You can cash in your retirement plans and collect your social security checks without having to worry about a big state tax bill.
New York’s senior exemption is also pretty generous. It’s calculated at 50 percent of your home’s appraised value, meaning you’re only paying half the usual taxes for your property.
You must be age 65 or older and have an annual income of no more than $58,399 as of 2023.
Other states and cities aren’t so friendly.
For senior homeowners in Boston, for example, exemptions are much smaller.
If you live in Boston, MA, your gross income, including your social security benefits, can’t be more than $25,653 if you are single and $38,480 if you are married (for Fiscal Year 2024).
Boston retirees also must have lived in the state of Massachusetts for 10 years, or have owned the property for five years.
In Washington, you may claim an exemption if you were at least 61 years old in the prior year and have a household income of less than $40,000.
Depending on your income level, this exemption can be standard, partial or full.
A full exemption in Washington means that you pay no tax on the first $60,000 or 60 percent of assessed value, whichever is greater.
Again, you’ll have to look up your state’s rules to find out whether you qualify, and for how much.
Property tax exemption for seniors FAQs
A senior property tax exemption is a program that provides eligible senior citizens with a reduction in their property taxes to help alleviate the financial burden of homeownership in their later years.
he eligibility criteria for senior property tax exemptions vary by location. Generally, they are available to homeowners who are at least a certain age (often 65 or older) and meet specific income or property value requirements.
To apply for a senior property tax exemption, you’ll need to contact your local tax assessor’s office or visit their website. They will provide the necessary application forms and guide you through the process.
The required documents may vary, but commonly requested ones include proof of age (such as a birth certificate or driver’s license), proof of homeownership, income verification, and any other documents specified by your local tax assessor’s office.
Senior property tax exemptions generally have no impact on your eligibility for other benefits such as Social Security or Medicare. However, it’s always a good idea to check with relevant agencies or programs to confirm how your property tax exemption may interact with other benefits.
The deadline for applying for a property tax exemption for seniors varies by location. It’s essential to check with your local tax assessor’s office to determine the specific deadline and submit your application before that date.
In some areas, senior property tax exemptions require annual renewal. Check with your local tax assessor’s office to determine if you have to renew your exemption each calendar year or if it remains in effect until certain conditions change.
In many cases, senior property tax exemptions are not transferable. If you move to a new home, you will likely need to apply for a new exemption in your new location, following the specific guidelines and requirements of that area.
The bottom line on property tax relief for retirees
No one enjoys paying one penny more than required when it comes to paying taxes.
When it comes to property taxes, you could be paying too much if you don’t know how to qualify for an exemption.
While it’s true that taxes are almost always certain, fortunately for retirees, many states provide some sort of tax relief when it comes to property taxes.
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