Under the new law, S5175A\/A3698A, localities now have the option to offer exemptions of up to 65% for seniors who fall below the maximum income eligibility thresholds set at the local level. State estimates suggest that increasing the exemption could save the average senior about $300 annually.<\/p>\n
Greg Olsen, acting director of the New York State Office for the Aging, noted that more than 1.8 million older adults in New York own their homes, and he said that \u201cproperty taxes, especially for those on fixed incomes, can often be difficult to afford.\u201d<\/p>\n
The bill was approved in the New York State Senate in June. Effective immediately, the legislation will apply to taxable years beginning on and after Jan. 1, 2026.<\/p>\n
According to reporting from Realtor.com, besides New York, 14 other states and the District of Columbia offer some form of property tax exemptions for older homeowners. These include Alabama, Alaska, Florida, Georgia, Indiana, Iowa, Kentucky, Mississippi, Nebraska, North Carolina, Ohio, South Carolina, Texas and Washington.<\/p>\n
But the type of relief varies widely by state.<\/p>\n
New York provides an exemption that reduces the portion of a home\u2019s value that is taxed. Other states exempt only the state-level portion of the tax bill, while some exclude a certain dollar amount \u2014 such as the first $150,000 of assessed value. <\/p>\n
Others freeze tax bills to protect seniors from increases, offer credits to reduce the amount owed or allow tax deferrals<\/a> in exchange for a lien on the property.<\/p>\n