Property Tax Relief for Senior Citizens

Senior citizens struggling to afford rising property tax bills may find relief with their state or city governments. Many states allow seniors to defer or receive a credit on their property taxes, and in some cases exempt seniors from paying special property tax levies.

Circuit Breaker Tax Credit

Massachusetts provides a so-called Circuit-Breaker tax credit for residents age 65 or older who paid rent or real estate taxes in excess of 10 percent of their income. Even though the credit is for local property taxes, the state will provide a state income tax credit. Connecticut also has a state Circuit-Breaker program, but the credit is applied to the homeowner's tax bill.

Home Value "Frozen"

People over age 61 in Washington state who meet income requirements are eligible for an exemption whereby the assessed value of their home is "frozen," and the homeowner would continue to pay taxes at the frozen level.

Homestead Exemption

Florida allows people 65 and older who meet income guidelines to claim a special homestead exemption in which $50,000 is exempted from the assessed value of their home.

Local Government Relief

In addition to states, county and municipal governments provide tax relief to seniors. Allegheny County in Pennsylvania allows homeowners age 60 or older to receive a flat 30 percent discount off their real estate tax bill each year they are eligible.

More Resources

In addition to your local Council on Aging, the American Association of Retired Persons Bulletin Today provides up-to-date news and resources on tax and finance issues affecting seniors.

References

• Mass. senior circuit breaker
• Allegheny County tax relief
• Washington tax exemption