8 States Where Senior Property Tax Breaks Actually Make a Difference

If you own a home, property taxes are an inevitable part of life. And while you may not be able to completely avoid them, there are certain individuals, like seniors, who could reduce their tax burden in retirement, thanks to property tax breaks.

For some seniors, state-level property tax breaks can make a significant difference to their retirement budget. This often overlooked senior benefit could lead to big savings in your golden years. Here are the top states where property tax breaks make a worthwhile difference for seniors.

In Alabama, any resident over 65 is exempt from paying the state portion of property tax. Additionally, disabled veterans of any age (100% disability rating) pay no property tax whatsoever on their primary residence (not exceeding 160 acres). County taxes may still apply.

For seniors aged 65 and older, earning $12,000 or less, this exemption may extend to your county-level property taxes, too. Depending on your situation, this may save hundreds or thousands of dollars each year.

Texas seniors age 65 and older currently receive a $110,000 homestead exemption. But a recent bill circulating the state Senate could raise this exemption to $200,000. That means seniors with homes worth less than $200,000 wouldn't have to pay maintenance and operations taxes to their local school districts.

For many, this exemption could lead to hundreds in savings each year. According to one report, seniors could save about $950 on their annual property tax bills.

Additional property tax exemptions vary at the city and county levels. In Austin, seniors over 65 and individuals with disabilities receive a $154,000 homestead exemption.

New York offers a tiered system of property tax exemptions for seniors. Local governments and school districts have the option of granting a property tax reduction to qualifying seniors age 65 and older within certain income limits.

For seniors with an income of $3,000 to $5,000, local municipalities can reduce the taxable assessment of a senior's home by 50%. Seniors with an income below $55,700 may qualify for a 20% property tax exemption. Seniors with an income below $57,500 may qualify for a 10% property tax exemption. Seniors with an income below $58,4000 may qualify for a 5% property tax exemption.

Although the value of these property tax exemptions varies from county to county, some seniors may save hundreds or thousands of dollars. For eligible seniors, this can make a significant difference in their annual budget.

Qualifying Colorado seniors can tap into a 50% property tax exemption on the first $200,000 in value of their primary residence. In order to qualify, seniors must be at least 65 years old. Previously, the state also had a residency requirement of 10 years. 

However, Colorado has recently introduced a temporary provision for the 2025 and 2026 tax years. Seniors who previously qualified for the exemption as of 2020 or later and have since lost it due to a move may be eligible to claim the exemption without meeting the 10-year residency requirement. However, you must own and occupy your current residence as of January 1 of the year you apply. 

Long-term Wyoming residents can tap into a significant property tax break in their senior years that could cut their bill in half.

For qualifying permanent residents who have lived in the state for at least 25 years, you can access a 50% reduction on your property tax bill. In addition to the 25-year state residency requirement, you must be at least 65 years old and live in the primary residence for at least eight months each year.

A 50% discount on property tax bills could make a significant difference for homeowners in the state.

Alaska seniors who are at least 65 years old can qualify for a state property exemption. In addition to age requirements, seniors must have lived in the state for at least a year, use the home as a primary residence, and stay in the property for at least 185 days per year. Eligible residents receive a $150,000 exemption from the assessed value of the home.

Hawaii seniors living in a home as a primary residence may qualify for a property tax exemption. While the specific exemption amounts may vary by county, in the county of Honolulu, this is equal to $160,000 of the assessed value of the home. Seniors must be at least 65 years old on or before June 30 of the preceding tax year to qualify.

This exemption is only for primary residences, which means if you rent more than two bedrooms in the house during the tax year, you'll lose access to this benefit. Additionally, you must occupy the property for more than 270 days a year.

Eligible Louisiana seniors who are at least 65 years old can apply for the Special Assessment Level Freeze. If you qualify for the program, it will freeze the assessed value of your primary residence, which might protect you from rising property taxes as property values rise.

Notably, if the millage rate changes at the parish level, your property tax bill might increase. In order to qualify, your adjusted gross income must remain below $100,000, and you must reside in the home.

Louisiana also offers a homestead exemption on the first $75,000 of the value of a person's home.

For seniors who own a home, property tax bills can represent a significant portion of their annual budget. In some cases, state-level property tax exemptions can lead to thousands of dollars in savings, which can help seniors on a budget stay on top of these ongoing expenses.

Seniors who have fallen behind on tax bills can also take action to get out of tax debt. Start by looking for any programs that might help you lower your tax obligations, cutting back on discretionary spending, and consider picking up a part-time gig during your retirement years to make ends meet.