New York increases the property tax exemption limit for seniors

Under the new law, S5175A/A3698A, municipalities now have the option to offer exemptions of up to 65% for seniors who fall below the maximum income thresholds set at the local level. State estimates suggest that increasing the exemption could save the average senior about $300 annually.

Greg Olsen, acting director of the New York State Office on AgingNoting that more than 1.8 million older adults in New York own their homes, he said that “property taxes, especially for those on fixed incomes, can often be difficult to afford.”

The bill was approved in the New York State Senate in June. Effective immediately, the legislation will apply to tax years beginning on and after January 1, 2026.

According to reports from Realtor.comIn addition to New York, fourteen other states and the District of Columbia offer some form of property tax relief for older homeowners. These include Alabama, Alaska, Florida, Georgia, Indiana, Iowa, Kentucky, Mississippi, Nebraska, North Carolina, Ohio, South Carolina, Texas and Washington.

But the type of assistance varies widely by state.

New York offers an exemption that reduces the portion of a home’s value that is taxed. Other states exempt only the state-level portion of the tax bill, while some exclude a certain dollar amount – such as the first $150,000 of assessed value.

Others freeze tax bills to protect seniors from increases, offer credits to reduce the amount owed or allow tax deferrals in exchange for a lien on the property.

Budget pressures could jeopardize these programs. In Colorado, for example — where the 2024 budget deficit was $1.2 billion — state lawmakers were urged in an open letter to maintain a property tax exemption for older adults and disabled veterans despite fiscal constraints.