Property tax exemptions

Property tax exemption programs.

Programs for Seniors and Elderly

Many states and local municipalities offer property tax assistance to seniors, the disabled, and veterans. Programs including homestead exemptions, senior freezes, payment plans, deductions, and lower assessments are some of the resources offered to individuals who meet income limits. The details of the programs will be different in each state and town, and some parts of the country may not offer any assistance at all.

However you should always call your local property assessor or county tax office to see what, if anything, may be available to you. Homestead exemptions or benefits are normally available for senior citizens and the elderly. Some states will also offer this to a home with a disabled member, a veteran, or someone who is on active duty.

Homeowners can receive an exemption from their property taxes which can be applied to their home. If you apply and meet qualifications, then a credit may be applied to your annual property tax bill, which will result in savings to the homeowner. Not only will an exemption or reduced assessment be offered to a veteran, but many states will also allow the credit to be used by their surviving spouse if the veteran were to pass away.

There will of course be income limits in place that need to be met by applicants. Some local governments will also have laws in place that protect families with a homestead exemption from the forced sale of their home. So if you can’t meet the demands of your creditors, then that means that someone you owe money to can’t take away your primary residence.

However this may not apply to a foreclosure if you are behind on your mortgage. Homeowners over 60 may be able to benefit from a: Senior Freeze . This is a form of property tax reimbursement that will prevent the continued rise/increase of your annual tax bill. If you enroll and are found to be qualified, the program will in effect freeze the assessed value of your home at the current rate, so your taxes will not go up.

In subsequent years the homeowner will receive a credit on their bill that will reflect the difference between the base tax amount and any subsequent increases. So while the official assessment of your home may increase, the amount that a homeowner needs to pay on their real estate taxes will not increase.

While not as common, another program for senior citizens may be a: Circuit Breaker . This will provide savings to a homeowner and their total tax obligation will be based on the individual’s income as well as their ability to pay their property taxes. Usually there will be a maximum percentage of income set by the state that an elderly member can pay for their taxes.

Some of the other, though even less common, property tax assistance and exemption programs include the following. Property Tax Deferrals are offered in a few states. This allows any overdue or unpaid taxes to be deferred until the home is sold. So if someone owes say $5,000, they will not need to pay this bill.

What will happen instead is the unpaid real estate tax will be set up as a lien against the property, and the amount will still be owed to the local county government when the property is sold, or when the homeowner passes away. Deductions can be established by your local town or county municipality.

If your local government does offer this, the most common beneficiaries are lower income senior citizens, veterans, and disabled homeowners.

Programs for Seniors and Elderly

Other resources may be offered as well. Anyone who is struggling, especially seniors and people with a disability, should contact their local county or municipal tax office right away. Inquire as to what type of, if any, real estate tax assistance, payment plan or deductions may be available.

Property and real state tax assistance programs by state Alabama - While eligibility conditions can be set and may change at the local town and county level, in general veterans and disabled senior citizens are exempt from paying property taxes.

Alaska - Both optional and mandatory exceptions are available, and only apply to certain homes. Under state regulation AS 29.45.030(e), there is a mandatory exemption of property taxes up to the first $150,000 of assessed value. This assistance program is for senior citizens age 65 years and older as well as disabled veterans.

All municipalities, towns, and cities in Alaska are required to grant this exemption. Arizona - Homestead exemptions and property tax assistance programs are offered to honorably discharged service members, soldiers, sailors, nurse corps, and other veterans.

Disabled residents and widows of a military member may also qualify for help. The Senior Valuation Protection Option freezes the property valuation of residential homeowners who are 65 years of age or older if they meet specific qualifications and make application to the County Assessor. The state of Arizona valuation freeze is for three years and may be renewed at the end of the third year.

This does not freeze your property tax bill but it does freeze the property valuation. Arkansas - Property tax assistance and deductions are offered for disabled veterans who have been awarded compensation by the United States Department of Veterans Affairs.

Additional beneficiaries can include surviving spouses as well, provided they do not remarry. California - An exemption is offered for unmarried surviving spouses of a veteran, or a military member with disabilities. The exemption can be for as much as $150,000 if the home owner also meets certain low income levels.

This is a fairly large discount, and can help people save a significant amount of money on their annual real estate tax bill. The state may exempt the first $7,000 of residential homestead value from property taxes.

Programs for Seniors and Elderly

There are also a few senior citizen property tax relief programs available in California. The postponement program gives qualified senior citizens the option of having the state pay their property taxes until the individual sells the property, moves, or dies.

This can almost be thought of as a long term payment plan. Another option is the formal property tax assistance program, which provides qualified elderly California residents with cash reimbursements.

The last option is the state’s replacement housing program, which allows seniors the ability to sell their home and buy a new one of equal or lesser value. They can then transfer the former home’s assessed value to the new residence. Colorado - A senior property tax exemption is in place as well as one for the disabled.

Also, cities such as Boulder Colorado will provide a 50% deduction for up to the first $200,000 of your home’s assessment. This is offered for senior citizens over age 65 that have lived in their home for ten consecutive years. Connecticut - There is one program that continues to operate, and it is the circuit breaker program.

It offers a credit for a senior that they can use on their annual property tax expense. It also supports veterans and their surviving spouses. Delaware offers homeowners age 65 the possibility of a tax credit against their regular school property taxes. This can be as much as a 50 percent reduction; however the maximum savings are set at about $500.

Florida - A homestead exemption of up to $50,000 is in effect for a primary home. This also includes widows and widowers who can get an exemption of up to $500. Blind persons and disabled may receive $500 as well. Ex-service members and veterans may receive savings, as well as disabled military members.

Another Florida program is known as Senior Citizen’s Exemptions of up to $50,000. This is available in certain counties and cities to qualified citizens aged 65 and older. In addition, some county governments in Florida will limit increases in your assessment. It shall not exceed the lower of 3% of assessed value from prior year or the percentage change in consumer price index.

Georgia offers the Standard Homestead Exemption. So while rules can change at the county level, in general a homeowner is entitled to a homestead exemption on their home and the land underneath it. Aid is also available for individuals 65 years of age and older, who may claim an exemption from state and property tax on their home and up to 10 acres of land surrounding the home.

Additional discounts and Homestead Exemptions are available for disabled veterans and surviving spouses of firefighters, emergency responders and police members. Hawaii offers discounts and savings for real property that is owned and occupied as a home by a widow(er) or totally disabled veteran. Idaho provides residents a homeowner’s exemption for manufactured homes as well as owner-occupied homes that are primary dwellings.

The exemption includes up to the value of your home and at most one acre of land. Illinois - The General Assembly may, by law, grant rent credits or homestead exemptions to qualified low income seniors and/or those with a disability. Rehabilitating your older home is rewarding in many ways, and with the Property Tax Assessment Freeze homeowners may be eligible for a financial incentive that can make the work even more attractive.

The program can freeze the assessed value of historic owner-occupied, principal residences in Illinois for a period of 8 years, followed by a four-year period during which the property’s assessed value steps up to an amount based upon its current market value.

This results in 12 years of reduced property taxes. This program is administered free of charge as a benefit to Illinois property owners interested in rehabilitating their historic homes.

Indiana - Deductions