How to apply for senior property tax exemption

Seniors who retire on a fixed income may find themselves in a unique position, especially from a tax perspective. With property values increasing every year, retirees may struggle to afford the rising property taxes. Fortunately, most states and local governments offer tax reliefs in the form of property tax exemptions to help ease the tax burden for seniors.

If you are eligible for property tax exemptions in your state, you can start your application by obtaining the necessary forms either online or at the local county tax office. Fill out the forms by providing the required information, including your personal information, age, and property ownership information, and attach the required documents, including proof of age and proof of ownership. Submit the completed application forms before the filing deadline.

What is a property tax exemption?

If you own a home or a real estate property tied to land, you will owe property taxes to your state or local government. Generally, the property taxes you pay are determined based on the value of your property. Property taxes are a big expense for most households, especially seniors who live off a fixed retirement income.

To help ease the burden of property taxes, most state and local governments provide property tax exemptions to help struggling homeowners lower or eliminate their property tax bills. Eligible homeowners may include seniors, people with disabilities, or people with limited incomes. 

Qualifying for senior property tax exemption

Property tax exemption rules vary across the states, and each state has specific guidelines that seniors must meet to qualify for an exemption. Some of these requirements include:

Age 

The age requirement for property exemption in most states ranges from ages 61 to 65. For example, in Washington, you must have reached age 61 by 31 December of the year before property taxes become due.

On the other hand, states like New York and Texas require senior homeowners to be at least age 65 to qualify for the property tax exemption. When claiming the property tax exemption, you will be required to prove your age by providing your birth certificate or driving license.

Ownership

You must prove ownership of the property that you want to claim property tax exemption. The nature of ownership can be either total or under contract purchase. Additionally, you will only get property tax exemption on your primary residence where you spend most of the time. Second homes and rental properties may not qualify for the property tax exemption.

Household Income

Each state has different rules on the household income limits for property tax exemption. Check the income limits for individual and married homeowners set by the county assessors to know if you qualify. Earning more than the set income limit can make you ineligible for the exemption, or the amount of exemption may be reduced. 

If you are married, the combined household income will be considered to determine the total household income. However, if you are single or head of household, only your income will be considered.

How to apply for senior property tax exemption

The county tax assessor is responsible for administering the property tax exemption program, and they set the eligibility requirements. Here are steps to follow when applying for a property tax exemption:

Check eligibility

The first step is to check with your county's tax authority to determine if you meet all the eligibility requirements. Confirm that you meet the age, income limit, and property ownership requirements.

Provide required documents

If you are eligible for the exemption, gather all the required paperwork that will be used to verify your age, income, disability (if any), and ownership of the property. Some of the documents you can provide include your driving license, pay stubs, employment records, proof of property ownership, and medical records to prove your disability.

Submit application

Most states allow online applications, but may also be able to visit the local state or country tax office to apply. Obtain and fill out the required forms and attach all necessary paperwork to complete the application before the deadline.

Check your state or Department of Revenue website to know the requirements of the senior property tax exemption, filing instructions, required documents, and the deadline for submitting the applications. You can also call the county assessor's office for additional information on the senior property tax exemptions.

Renewal of Property Tax Exemption

When your application is approved, you can enjoy the benefits of the property tax exemption program for one or more years. You may be required to complete the renewal application form if or when changes arise that can affect the exemption.

Property tax exemption renewals are done to ensure your details are up to date. Some of the circumstances that require you to apply for change of status include:

• Change of property ownership
• When you sell your home
• If there is a change in your disposable income which would affect the amount of property tax exemption
• If your home ceases to be your primary residence
• When the office of the assessor requires to verify your income

When your local assessor receives your application, two outcomes are expected: approval or rejection. If your application is rejected, and you are not satisfied with the decision, you can appeal the decision to the appropriate state body. In Washington, appeals are sent to the County Board of Equalization within 30 days after the receipt of the denial letter.

Conclusion

If your state offers property tax exemption for seniors, you should check if you meet the eligibility requirements. Most states have websites where you can check the eligibility requirements, filing instructions, and the required forms. You can also contact the local country assessor's office for information on how to apply for property tax exemption.