16 States Exempt Senior Citizens From Property Taxes—but Nearly Every State Offers Some Kind of Relief

Rising property tax bills have been a rallying cry for homeowners across the country. But no one has been hit harder by this growing burden than seniors, many of whom have struggled to meet the growing overhead costs of aging in place while living on a fixed income.

Even when these homeowners have hundreds of thousands of dollars of equity, accessing that capital can come with a hidden home equity tax—one that disproportionately affects seniors—and holding on to it means keeping up with rising tax bills.

To ease the strain, 16 states and the District of Columbia offer property tax exemptions for qualifying seniors. An additional 18 states provide tax credits, five have implemented property tax freezes to stabilize costs year to year, and six offer deferral programs. Still, many of these policies haven’t kept pace with rapid home price growth, providing comparatively small relief.

Now, seven more states are weighing new legislation aimed at protecting seniors from being taxed out of the homes they’ve spent decades paying off.

Exemptions vs. freezes vs. credits vs. deferrals

There are several forms of property tax relief, with the most common being exemptions, freezes, tax credits, and deferral programs. All aim to lower the property tax burden, but they work in different ways:

• Exemptions reduce the assessed value of your home, or the portion that’s subject to taxation. By lowering the taxable value, your overall tax bill is reduced.
• Property tax freezes lock in your current tax amount, preventing increases even if your home’s value goes up. This helps protect against rising property taxes and offers long-term predictability.
• Tax credits provide a direct reduction in your tax bill. Rather than adjusting your home’s value, they subtract a set amount from the total you owe each year.
• Deferrals allow seniors to avoid paying taxes, often in exchange for a tax lien against their home. When the owner dies or decides to sell their home, the state will collect the debt, often with interest.

Qualifying for senior relief

While many states offer targeted relief for seniors and their property tax burdens, qualifying for that relief isn’t always as straightforward as meeting an age requirement. In many of the laws we reviewed, income requirements were also necessary to qualify for property tax exemptions, credits, and freezes.

Qualifications vary from state to state and sometimes year to year, so it’s essential to discuss them with your county assessor.

Navigating the nuances of property tax relief can be difficult, but it can be more than worth the hassle. A recent report by Realtor.com® found that as many as 40.5% of properties could be overpaying on their property taxes. A new tool makes it easier to protest your assessment by comparing your home's assessment value to similar homes, and providing a set of data on comparable properties that you can use as evidence in your appeal.

States that offer property tax exemptions to seniors

• Alabama: Exempts seniors from the state portion of property taxes; county taxes may still apply.
• Alaska: Exempts the first $150,000 of assessed home value for homeowners aged 65-plus.
• Colorado: Exempts 50% of the first $200,000 in value of a senior’s primary residence.
• District of Columbia: Cuts property tax in half for qualifying seniors.
• Florida: Counties and cities may grant an exemption of up to $50,000 for seniors with incomes under about $35,000.
• Georgia: Provides a $4,000 exemption from county taxes for qualifying seniors.
• Indiana: Reduces the assessed value of a qualifying senior's home by $14,000.
• Iowa: Exempts $6,500 of the taxable value for homeowners aged 65-plus.
• Kentucky: Exempts $49,100 of assessed value for qualifying homeowners aged 65-plus.
• Mississippi: Exempts $7,500 of assessed home value for homeowners aged 65-plus.
• Nebraska: Offers property tax reductions for seniors on their primary residence.
• New York: Local governments may exempt up to 50% of assessed value for seniors with incomes under roughly $58,000. Seniors may also qualify for Enhanced STAR school tax relief.
• North Carolina: Exempts the greater of $25,000 or 50% of the home’s assessed value.
• Ohio: Exempts $26,200 of assessed value for qualified senior homeowners.
• South Carolina: Exempts the first $50,000 in fair market value for homeowners aged 65-plus.
• Texas: Requires school districts to offer an additional $10,000 homestead exemption for seniors. Local taxing units may offer an additional exemption of at least $3,000.
• Washington: Offers three tiers of exemptions based on a senior’s combined disposable income.

States that offer property tax credits to seniors

• Connecticut: Offers a credit of up to $1,250 for married couples and $1,000 for single persons.
• Delaware: Credits 50% of school property taxes up to $500. New residents must live in the state for 10 years to claim the full amount.
• Idaho: Offers a property tax reduction of between $250 and $1,500 for eligible homeowners on their home and up to 1 acre of land.
• Kansas: Offers a credit for up to 75% of the property taxes on a principal residence.
• Maine: Eligible taxpayers may receive a portion of the property tax or rent paid during the tax year as a credit, regardless of whether they owe state income tax.
• Massachusetts: Offers a maximum senior property tax credit of $2,730 for the 2024 tax year.
• Michigan: Seniors can receive a credit of up to $1,200, based on the amount property taxes exceed 3.5% of their income.
• Missouri: Provides a credit of up to $750 for renters and $1,100 for homeowners who occupy their property.
• Montana: Seniors aged 62-plus may qualify for a credit of up to $1,150, even with no income.
• New Jersey: The Stay NJ program reimburses 50% of property tax bills, with a cap of $6,500 in 2024.
• New Mexico: Offers a credit of up to $250 (or $125 for married individuals filing separately).
• North Dakota: Offers homestead property tax credits and renter's credits for eligible residents.
• Pennsylvania: Provides rebates from $380 to $1,000 to eligible seniors and disabled adults.
• South Dakota: Offers eligible seniors and disabled residents a yearly refund of sales or property taxes.
• Tennessee: The state reimburses a portion or all of property taxes for eligible homeowners. This is a credit, not an exemption. 
• Utah: The maximum property tax credit for renters is $1,259 under the Circuit Breaker program. 
• West Virginia: Offers a property tax credit of up to a maximum of $1,000.
• Wisconsin: Provides both homestead and school property tax credits for eligible seniors.

States that offer property tax freezes to seniors

• Arizona: Freezes the property value of a primary residence for qualifying seniors, preventing increases in assessed value.
• Arkansas: Freezes the assessed value of a homestead for eligible seniors to prevent future increases in property taxes.
• Louisiana: Freezes property tax assessments for eligible seniors and exempts the first $75,000 of a home’s value from property taxes.
• Oklahoma: The Senior Valuation Limitation freezes the fair cash value of a qualifying homestead for seniors, stabilizing property tax bills.
• Texas: Offers a feeze on the school district portion of property taxes at the amount owed when the homeowner turns 65 (often called the “tax ceiling”).

States that offer deferrals to seniors

• California: Seniors aged 62-plus with qualifying income and equity can postpone property taxes. State pays, lien with 7% interest.
• Maine: Seniors aged 65-plus with qualifying income and limited assets can defer taxes to be paid after sale or death.
• Minnesota: Qualifying seniors paying more than 3% of income toward tax can opt for the state to cover the rest in exchange for a lien with 5% interest.
• Oregon: The state will pay property taxes for qualifying seniors, and place a lien against the home at 6% interest.
• Vermont: Qualifying seniors can defer taxes at 0% interest until sale or death.
• Washington: Seniors with qualifying income can defer property taxes as a lien with 5% interest.

What states are trying to pass more exemptions for seniors?

• Maine: LD 1541 would eliminate property taxes for seniors in the state entirely, providing the first of its kind relief.
• Michigan: SB 292 would also exempt seniors over the age of 70 in the state from paying property taxes.
• Minnesota: HF403 would create a homestead tax credit for seniors aged 65-plus.
• Ohio: A grassroots organization is leading an effort to abolish property taxes in the state by constitutional amendment.
• Oklahoma: Senate Bill 1114 would freeze taxes for seniors in the state, providing relief for an estimated 100,000 residents.
• Oregon: House Bill 3755 would exempt 5% of the property taxes for seniors who meet certain qualifications.
• Texas: Senate Bills 4 and 23 would increase Texas’ senior exemption to as high as $200,000. Combined with the senior tax freeze, these exemptions could have the power to effectively eliminate the school portion of seniors' property tax bills.