7 States Offering Big Tax Savings If You’re a Senior Homeowner
Written by
G. Brian Davis
Edited by
Zuri Anderson
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Most states offer some kind of property tax relief for seniors — but that could mean exemptions, tax credits, freezes or deferrals.
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.
Alabama
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.
Alaska
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
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.
Florida
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
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.
South Dakota
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.
Lots of restrictions apply however, including acreage and length of ownership, so see the South Dakota Department of Revenue.
Texas
The Lone Star State also stacks up the property tax relief.
“Texas stands out because it offers both large exemptions and a tax ceiling,” explained Colton Pace, CEO at property tax negotiator Ownwell. On top of the standard $140,000 homestead exemption, homeowners ages 65 and older get another $60,000 exemption.
“If you live in a home valued below $200,000, you’ll essentially have no property taxes,” Pace added.
Homeowners also qualify for a school tax freeze the year they turn 65 and can defer paying taxes until they sell the home. Read the full details on the Texas Comptroller website.
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