Seniors and Property Taxes: Lowering Your Taxes

Property Taxes make up a big chunk of Ownership Cost. 

Property taxes are complicated and make up a big chunk of homeownership costs. What’s worse is that the amount you owe annually can change as tax districts look for additional funding.  (Source: Realtor.com)

Property taxes are charged by tax districts (state and municipalities) as an important revenue source.  Property taxes are assessed for your home, a second home, vehicle(s), recreation vehicle (RV's), boat, etc. 

Some states and municipalities offer property tax "freezes" (property tax rates are frozen), "rebates", and "exemptions" for Seniors. 

Requirements vary.  

Requirements will include age (usually age 65), property must be your "primary residence" and proof of year(s) of ownership, one vehicle per retiree (household with 2 retirees may include 2 vehicles), and may include household income. 

How Do I Found Out Whether my State or Municipality Offers Senior Property Tax Discount?

The simplest way to find out whether your State or municipality offers senior property tax discount is to google "Senior Property Tax Discount" + your "municipality" or "state".

Examples of Senior Property Tax Discounts (and how they vary).

Alaska

In Anchorage, Alaska, at age 65 a resident is authorized for a 20% home property tax discount.  Additionally, a resident may be exempt from vehicle property tax.  Requirements include - Home must be primary residence.  Vehicle Property Tax: 1 vehicle per retiree exemption. 

In Soldotna, Alaska, residents are exempt from home property tax. 

Arizona

"An Arizona homeowner, 65 years or older, can apply to her county assessor for a three-year value freeze on her house and up to 10 acres of land around it. While the freeze is in place, the taxable value of the property can't go up, though the property tax rate can increase. The senior must have income under $30,576 at time of writing -- $38,220 for a two-owner house -- and have lived there at least two years." (Source: Sapling.com)

After age 70, or a widow/widower at any age, a resident may apply for a "tax deferral".  There are qualification requirements based on annual income and years of ownership.  Deferral does not include "back taxes".  

Florida

Florida Homestead Property Tax Exemption authorizes if you own your primary residence, and it is worth $75,000.00 or more, you are entitled to a homestead exemption of $50,000.00 for the year if you were living at the subject residence as of January 1st of that calendar year.  If you are age 65 or older and qualify for the low-income threshold, you are authorized to apply for an additional $25,000 exemption.  (Source: elderneedslaw.com) 

Texas

All homeowners can apply for a standard residence home exemption of $40,000 of taxable property value. Seniors, over age 65, get an additional $10,000 exemption. Additionally, some municipalities, for example: Plano, Texas offer an exemption of up to 20% of a home’s value. (Source: texasrealestatesource.com) 

How Do I Apply?

Contact your State or municipal property Tax Assessor and your state division of motor vehicles (DMV). 


Reflection and Call to Action: 

Am I taking advantage of tax exemptions that I qualify for?  

Google "Senior Property Tax Discount" + "your municipality or state". 

SO...What'd we miss??

We welcome your comments: Your experience with "property tax exemption"? 

 




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