One of the most expensive states for US homeowners just mailed out $145M in ‘Senior Freeze’ property tax rebates — where else can Americans aged 65+ catch a break on their taxes?

New Jersey’s Senior Freeze Program

The state’s program allows eligible homeowners to freeze their property taxes at a certain base year amount. The program reimburses any increases in property taxes paid since the base year, effectively “freezing” the tax rate at a previous level.

To qualify, homeowners must be aged 65 or older on December 31, 2022, or receiving Social Security disability benefits on or before that date; have owned and lived in their home (or mobile home) since December 31, 2019, and still owned it and lived there on December 31, 2023; and meet specific property tax and income limits.

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Other States Offering Property Tax Relief for Seniors

While New Jersey’s Senior Freeze Program has gained attention, several other states offer similar programs. Some notable examples:

California. The Golden State offers the Property Tax Postponement (PTP) program, which allows seniors, blind, and disabled residents to defer current-year property taxes on their principal residences. The deferred taxes become a lien on the property, which must be repaid when the homeowner sells or transfers the home, refinances, or passes away.

Florida. The Sunshine State has a property tax exemption for seniors aged 65 and older. The Senior Citizen Exemption provides additional homestead exemptions for low-income seniors who meet specific criteria. This can significantly reduce the taxable value of the property, resulting in lower property taxes.

Texas. Everything’s bigger in Texas, including the Senior Citizen Homestead Exemption, which provides an additional $10,000 exemption for school district taxes for homeowners aged 65 and older. The state also allows seniors to defer paying property taxes until they sell their home or pass away — a deferral that can provide substantial relief.

New York. The enhanced STAR (School Tax Relief) program provides property tax relief for seniors aged 65 and older with qualifying incomes. New York also offers a Senior Citizens’ Exemption, which provides further reductions based on income criteria.

Surprising Costs

While programs like the ones mentioned above can offer substantial relief, seniors should be aware of some surprising costs associated with property tax relief programs:

Application fees and deadlines. Some programs may require application fees or have strict application deadlines. Missing a deadline or not paying a fee can result in a loss of benefits for that year.

Income limits. Watch out for annually adjusted income limits that could crimp eligibility. Seniors need to stay informed about these changes to ensure they qualify.

Repayment requirements. Certain deferral programs, like those in California and Texas, require repayment of deferred taxes upon sale, transfer, or inheritance of the property. This can be a significant financial consideration for heirs.

Impact on other benefits. Receiving property tax relief may impact eligibility for other state or federal assistance programs. Seniors should check how these benefits interact.