Every week, Mansion Global poses a tax question to real estate tax attorneys. Here is this week’s question.
Q: What U.S. cities have the best property tax discounts for seniors?
A: Many states have some sort of deduction on the books for seniors, although many of them are for those with a limited income.
For instance, in New York City, property tax relief is available to homeowners with a combined annual income of $58,399 or less, according to the city’s Department of Finance website.
In Miami, there are senior citizen exemptions, and to get them "the key is to be homesteaded," according to Leslie Evans of Florida-based Leslie Robert Evans & Associates. Homesteading, available to those who make Florida their primary residence, helps seniors get additional tax benefits all over the state.
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Miami offers a resident senior exemption for those 65 and over and have an annual income of just under $29,500. Qualifying homeowners can get up to a $50,000 exemption, according to the Miami-Dade property appraiser’s website. There’s also the long-term resident senior exemption, which is for those with a restricted income and who have lived in their homes (valued at $250,000 or less) for at least 25 years. That exemption can be up to an additional $50,000.
Regardless of income, Honolulu offers relief for seniors who are 65 and older and residents of the city. The exemption amounts to $120,000, meaning that amount is deducted from the assessed value of the property and the homeowner is taxed on the balance, according to the city’s website.
San Francisco residents can see some tax relief, too, as it is one of a handful of California counties that allows homeowners to transfer their existing property taxes to a new home, according to C. Stephen Davis, a lawyer in the Irvine office of Greenberg Traurig, LLP.
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Because of the state’s cap on increases in property taxes, and because they are based on the original assessed value of a home, long-time homeowners are likely paying relatively low rates. In San Francisco and other areas, that low rate can be transferred from an existing house to one of equal or lesser value for those over 55 years old. That law may be expanded to include the whole state. Californians will vote on a ballot initiative proposing to do so this fall.
Boston also has a property tax relief for some seniors—but they have to work for it. The city gives a $1,500 abatement in property taxes to homeowners who volunteer 137 hours per year for a city agency and has a qualifying income ($40,000 for individuals, $55,000 for couples), according to the City of Boston’s website.
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