Jan 13, 2026
New York Governor Kathy Hochul has signed new legislation allowing qualifying older adults to receive up to a 65% property tax exemption, a move aimed at easing the financial strain many older homeowners face as housing costs continue to climb.
The expanded exemption significantly increases the cap on existing tax relief for older adults, which had been capped at 50% for decades (1).
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For many older Americans living on fixed incomes, rising property taxes have become increasingly challenging to manage. While retirement income often remains flat, tax bills can jump sharply as home values rise, leaving older homeowners struggling to absorb the increase.
In New York, the average effective property tax rate for median owner-occupied homes is roughly 1.7%, one of the highest rates in the country (2). For an older adult living in a $300,000 home, that translates to an annual tax bill of about $5,100.
Under the old law, the 50% tax exemption for qualified older Americans would drop the taxable value of that home to $150,000, which means a 1.7% tax rate would put the annual tax bill at $2,550.
But under the new law, a 65% exemption could reduce that home's taxable value to $105,000, lowering the annual tax bill to roughly $1,785. This means the older adult who owns this $300,000 home would save $765 annually on their property tax bill, depending on local rates and whether municipalities opt into the program.
How this can help older Americans in New York
Property taxes have surged nationwide in the years following the pandemic housing boom, putting added pressure on homeowners, especially retirees.
According to data from Cotality, median property taxes rose 26.3% between 2019 and 2023 for homeowners whose properties were reassessed (3), and this increase has landed alongside higher insurance premiums, elevated interest rates and rising HOA fees.
For older adults, the impact can be especially severe. Unlike working households, retirees typically can’t offset higher housing costs by earning more income. As a result, property taxes have become one of the biggest affordability threats facing aging Americans — forcing some to consider downsizing, delaying retirement plans or even taking on debt just to stay in their homes.
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That’s where New York’s new law could make a meaningful difference. By allowing local governments to raise the exemption cap for older Americans to 65% of a home’s assessed value, the legislation gives municipalities a tool that offers immediate relief to older homeowners struggling to keep up.
“No New York senior should lose their home because they can no longer afford their property taxes,” said Hochul in a statement published by Newsweek (1). “By signing this legislation, we are working to make New York more affordable for our seniors on fixed incomes and empowering them to age in place, at home, in the communities they know and love.”
Still, the broader impact remains an open question. Large-scale property tax reductions can ease housing insecurity for older adults, but they also shift costs to local budgets, which are often funded through additional tax hikes or service cuts.
Housing advocates say exemptions like this work best when paired with longer-term solutions, including expanding affordable housing supply and rethinking how local governments fund essential services.
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Not in NY? Here's how to address rising property taxes
Older Americans in other states may not see a 65% exemption, but there are still ways to reduce or manage rising property tax bills. Here are a few practical steps you can take.
Check your local laws
Many states offer property tax freezes or exemptions once homeowners reach a certain age or meet income limits. Florida, for example, provides an additional homestead exemption for qualifying older adults aged 65 and up, and some counties offer even deeper local discounts, according to the Florida Department of Revenue (4). See if your local area offers similar exemptions and if you're eligible.
Consider appealing tax bill hikes
Most states reassess property values every few years, which can result in a significant increase in taxes; however, you can appeal those changes. Errors in square footage, condition or comparable sales can inflate assessments, and correcting them can lower your tax bill without changing tax rates. Consider getting legal help if you're concerned about navigating the appeal process.
Budget for taxes — and plan for rate increases
Older adults should plan ahead by treating property taxes like a non-negotiable bill. Setting aside money each month using an escrow account, sinking fund or automatic transfer can help smooth out large annual bills.
Get involved locally
Because property taxes are set and administered at the local level, municipal decisions matter. Attending town meetings, voting on local tax measures or supporting senior-focused exemptions can influence whether relief programs are expanded or adopted in your community.
New York’s new law reflects a broader conversation about housing affordability for older Americans. While tax exemptions won’t solve the housing affordability crisis on their own, they can provide critical breathing room, especially for older homeowners. As more states grapple with similar pressures, property tax relief for older adults is likely to remain a growing part of the policy debate.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Newsweek (1); New York State (2); Cotality (3); Florida Department of Revenue (4)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
