As home values have soared across the country, property tax bills have risen in lockstep. While many homeowners are feeling the pinch, seniors living on fixed incomes are often hit hardest by this growing burden. Many own homes that have appreciated significantly, locking in hundreds of thousands of dollars in equity. But accessing that equity is difficult, and holding on to it means keeping up with rising tax bills.
To ease the strain, 16 states and the District of Columbia offer property tax exemptions for qualifying seniors. Another 17 states provide tax credits, and five have implemented property tax freezes to stabilize costs year to year. Still, many of these policies haven’t kept pace with rapid home price growth, providing comparatively small relief.
Now, seven more states are weighing new legislation aimed at protecting seniors from being taxed out of the homes they’ve spent decades paying off.
Exemptions vs. freezes vs. credits
There offer several forms of property tax relief, with the most common being exemptions, freezes, and tax credits. All aim to lower the property tax burden, but they work in different ways:
Exemptions reduce the assessed value of your home, or, the portion that’s subject to taxation. By lowering the taxable value, your overall tax bill is reduced.
Property tax freezes lock in your current tax amount, preventing increases even if your home’s value goes up. This helps protect against rising property taxes and offers long-term predictability.
Tax credits provide a direct reduction in your tax bill. Rather than adjusting your home’s value, they subtract a set amount from the total you owe each year.
Qualifying for senior relief
While many states offer targeted relief for seniors and their property tax burdens, qualifying for that relief isn’t always as straightforward as meeting an age requirement. In many of the laws we reviewed, income requirements were also necessary to qualify for property tax exemptions, credits, and freezes.
Qualifications vary from state to state and sometimes year to year, so it’s essential to discuss them with your county assessor.
Navigating the nuances of property tax relief can be difficult, but it can be more than worth the hassle. A recent report by Realtor.com® found that as many as 40.5% of properties could be overpaying on their property taxes. A new tool makes it easier to protest your assessment by comparing your home's assessment value to similar homes, and providing a set of data on comparable properties that you can use as evidence in your appeal.
States that offer property tax exemptions to seniors
Alabama: Exempts seniors from the state portion of property taxes; county taxes may still apply.
Alaska: Exempts the first $150,000 of assessed home value for homeowners aged 65 and older.
Colorado: Exempts 50% of the first $200,000 in value of a senior’s primary residence.
District of Columbia: Reduces property tax by 50% for qualifying seniors.
Florida: Offers an exemption of up to $50,000 for homeowners aged 65 and older.
Georgia: Provides a $4,000 exemption from county taxes for qualifying seniors.
Indiana: Reduces the assessed value of a qualifying senior's home by $14,000.
Iowa: Exempts $6,500 of the taxable value for homeowners aged 65 and older.
Kentucky: Exempts $49,100 of assessed value for qualifying homeowners aged 65 or older.
Mississippi: Exempts $7,500 of assessed home value for homeowners aged 65 and up.
Nebraska: Offers property tax reductions for seniors on their primary residence.
New York: Exempts up to 50% of a home’s assessed value for qualifying seniors.
North Carolina: Exempts the greater of $25,000 or 50% of the home’s assessed value.
Ohio: Exempts $26,200 of assessed value for qualified senior homeowners.
South Carolina: Exempts the first $50,000 in fair market value for homeowners over age 65.
Texas: Requires school districts to offer an additional $10,000 homestead exemption for seniors. Local taxing units may offer an additional exemption of at least $3,000.
Washington: Offers three tiers of exemptions based on a senior’s combined disposable income.
States with property tax credits to seniors
Connecticut: Offers a credit up to $1,250 for married couples and $1,000 for single persons.
Delaware: Offers a tax credit for the portion of a senior’s property tax bill that goes toward school funding.
Kansas: Offers a credit for up to 75% of the property taxes on a principal residence.
Maine: Eligible taxpayers may receive a portion of the property tax or rent paid during the tax year as a credit, regardless of whether they owe state income tax.
Massachusetts: Offers a maximum senior property tax credit of $2,730 for tax year 2024.
Michigan: Seniors can receive a credit of up to $1,200, based on the amount property taxes exceed 3.5% of their income.
Missouri: Provides a credit of up to $750 for renters and $1,100 for homeowners who occupy their property.
Montana: Seniors over 62 may qualify for a credit up to $1,150, even with no income.
New Jersey: The Stay NJ program reimburses 50% of property tax bills, with a cap of $6,500 in 2024.
New Mexico: Offers a credit of up to $250 (or $125 for married individuals filing separately).
North Dakota: Offers homestead property tax credits and renters’ credits for eligible residents.
Pennsylvania: Provides rebates from $380 to $1,000 to eligible seniors and disabled adults.
South Dakota: Offers eligible seniors and disabled residents a yearly refund of sales or property taxes.
Tennessee: The state reimburses a portion or all of property taxes for eligible homeowners. This is a credit, not an exemption.
Utah: The maximum property tax credit for renters is $1,259 under the Circuit Breaker program.
West Virginia: Offers a property tax credit up to a maximum of $1,000.
Wisconsin: Provides both homestead and school property tax credits for eligible seniors.
States with property tax freezes to seniors
Arizona: Freezes the property value of a primary residence for qualifying seniors, preventing increases in assessed value.
Arkansas: Freezes the assessed value of a homestead for eligible seniors to prevent future increases in property taxes.
Louisiana: Freezes property tax assessments for eligible seniors and exempts the first $75,000 of a home’s value from property taxes.
Oklahoma: The Senior Valuation Limitation freezes the fair cash value of a qualifying homestead for seniors, stabilizing property tax bills.
Idaho: Offers a property tax reduction between $250 and $1,500 for eligible homeowners on their home and up to 1 acre of land.
What states are trying to pass more exemptions for seniors?
Maine: LD 1541 would eliminate property taxes for seniors in the state entirely, providing the first of its kind relief.
Michigan: SB 292 would also exempt seniors over the age of 70 in the state from paying property taxes.
Minnesota: HF403 would create a homestead tax credit for seniors aged 65 or older.
Ohio: A grassroots organization is leading an effort to abolish property taxes in the state by constitutional amendment.
Oklahoma: Senate Bill 1114 would freeze taxes for seniors in the state, providing relief for an estimated 100,000 Oklahoma residents.
Oregon: House Bill 3755 would exempt 5% of the property taxes for seniors who meet certain qualifications.
Texas: Senate Bills 4 and 23 would increase Texas’ senior exemption to as high as $160,000.
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