What’s senior citizen homeowners exemption?

As you age, you can take advantage of federal and state programs that make taxes more manageable on a senior fixed income. One of these programs is the Senior Citizen Homeowners' Exemption, which is available to seniors in New York. Learn how this program works and the qualifying income limits.

The Senior Citizen Homeowners' Exemption lowers the assessed value of your home by 5% (for those earning up to $58,399 per annum) to 50% (for those earning under $50,000 per annum), with the value of the reduction rising as the total income decreases. You must be 65 years or older, as will other co-owning parties unless they are a spouse or sibling. This exemption considers your income based on all sources, including Social Security and other retirement income, earned income, capital gains, and other income sources like dividends and property rental.

What is the Senior Citizen Homeowners’ Exemption?

The Senior Citizen Homeowners' Exemption is a property tax break available to seniors living in New York. It is offered alongside the Disabled Homeowners’ Exemption in the area.

The exemption works by reducing your assessed value for the home by up to 50% (rather than offering a fixed dollar reduction. Since it is tied to your income, you will need to give the state an accurate statement of your income if you are hoping to apply. Be aware that this includes all of your income, including that reflected on W2s, 1099s, retirement accounts, and Social Security. No income type is excluded. If you’re not sure how to prepare this information, they offer an income calculation worksheet to simplify your work.

Who is eligible for the Senior Citizen Homeowners’ Exemption?

The Senior Citizen Homeowner’s Exemption is available to senior citizens who live in New York. The property itself must be your primary residence and should be a one-, two-, or three-family home, condominium, or cooperative apartment.

All property owners have to be 65 or older to qualify. The only exemption is for siblings or spouses who own a property jointly, where only one owner needs to meet the age guideline. All owners must be residents at the property as their primary residence, with one exception- some owners receiving in-patient care at a residential healthcare facility may still qualify for the exemption.

Your combined income (i.e. the income of everyone listed as a spouse or co-owner) cannot exceed $58,399 per annum. This includes income from Social Security, other retirement benefits and income, interest, dividends, capital gains, net rental income, and money you earn from a job or self-employment.

You also need to have had the homeowners’ exemption active on a previous property (while still meeting other requirements) or have owned the property for at least 12 consecutive months before filing for the exemption.

How much property tax reduction will I get?

You will have the assessed rate of your property dropped by somewhere between 5% and 50%, depending on your income bracket:

• For those earning up to $50,000, you will receive the full 50%
• Between $50,001 and $50,999, 45%,
• Between $51,000 and $51,999, 40%,
• Between $52,000 and $52,999, 35%,
• Between $53,000 and $53,899, 30%,
• Between $53,900 and $54,799, 25%,
• Between $54,800 and $55,699, 20%,
• Between $55,700 and $56,599, 15%,
• Between $56,600 and $57,499, 10%, and lastly,
• Between $57,500 and $58,399, 5%.

How long does the Senior Citizen Homeowners’ Exemption last?

Once you have qualified for the Senior Citizen Homeowners’ Exemption, you can keep it as long as your income remains in the qualifying brackets. However, you will have to renew your senior Citizen Homeowners’ Exemption every 2 years to keep it active.

You will receive communication from the Department of Finance letting you know when your renewal is due, but even if you don’t, make sure to track when your resubmission needs to go in so there is no interruption in your coverage. You can also apply to have the exemption removed if you are moving into a care facility or simply no longer need it.

If you need more time due to age or disability or are having difficulties accessing any similar Department of Finance program, you can also ask them for extra time or even assistance in completing the necessary application and paperwork. You can call 311, contact them via email, write to the DOF, or use their virtual appointment system.

Are there similar programs in other states?

While the Senior Citizen Homeowners' Exemption is specific to the New York State area, there are similar programs that will help you meet your property tax obligations in many states. These programs may work similarly to the New York program, by reducing your property’s assessed value by a specific dollar amount or percentage.

Alternatively, they may offer a direct ‘discount’ in the form of a dollar rebate, or freeze the assessment of your property value throughout the remainder of your time living there, so you can predict your annual property tax more easily. Be sure to keep a look out for these programs- you can contact your state’s Area Agency on Aging, or the property-focused local department, for further information on your options. Remember that eligibility and other factors will be different between each state and program.

The Senior Citizen Homeowners’ exemption could be a valuable tool in helping to keep your property tax payments manageable as a senior citizen, so don’t be shy to use this great program if you need it.