7 States Offering Big Tax Savings If You’re a Senior Homeowner
Most states offer some kind of property tax relief for seniors — but that could mean exemptions, tax credits, freezes or deferrals.
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These states offer the best bargains for older homeowners, according to real estate experts. Plus, find out which states have the highest property tax burdens.
The Alabama Department of Revenue exempts homeowners over 65 years old (and those blind or permanently disabled) from paying the state portion of property taxes.
“County-level taxes sometimes still apply, although they’re often reduced for seniors,” explained Oren Sofrin of Eagle Cash Buyers.
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Homeowners ages 65 and up get an exemption for their first $150,000 in property tax assessment. For example, if your home is assessed at $250,000, you’d pay property taxes on $100,000 instead of the full assessed value. See the Alaska Commerce Department for full details.
Colorado exempts 50% of the first $200,000 in assessed value, with a few caveats.
“Many people assume they need to move to save money, but they’re wrong,” said Andrew Fortune, Realtor with Great Colorado Homes. “The exemption applies to seniors 65 and older who have both owned and lived in the home for at least 10 years.”
Read the details on the Colorado Department of Local Affairs website.
The standard Florida homestead exemption eliminates up to the first $50,000 in property taxes, and many counties offer additional exemptions for seniors, especially those with lower incomes.
Some counties also offer long-term residential exemptions, for homeowners who have lived in their property for at least 25 years. Add in the lack of state income tax and you can see why many people are moving to Florida.
Check the Florida Department of Revenue for more information.
South Carolina exempts the first $50,000 in assessed value from property taxes for homeowners over 65. Military veterans and disabled homeowners may qualify for additional relief — see the South Carolina Department of Revenue.
Older residents in South Dakota can qualify for several types of property tax relief.
First, homeowners age 65 and older qualify for a property tax freeze, locking in their current tax assessment no matter how much the market value rises.
Low-income seniors can also apply for a property tax credit. And homeowners ages 70 and up can defer property taxes in some cases until the property sells.
