--- title: More States Are Giving Property Tax Breaks to Seniors — With Savings up to $6,500 description: New Jersey and Iowa are joining other states that offer special property tax breaks for seniors, who can save thousands of dollars. authors: - name: Pete Grieve role: Lead News Reporter url: https://money.com/author/pete-grieve/ bio: Pete Grieve is a personal finance reporter. In his time at Money, Pete has covered everything from car buying to credit cards to the housing market. education: University of Chicago, BA Political Science at_money_since: 2022 articles: 602 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping social: - https://twitter.com/pete_grieve - https://linkedin.com/in/pete-grieve-b5aa02138 - https://www.facebook.com/petegrieve4 editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Taxes - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-06-27T20:54:30.000Z' modified: '2023-06-27T20:54:30.000Z' section: Taxes tags: - News word_count: 561 canonical: https://money.com/states-lower-property-taxes-seniors/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Photo Collage of a Senior couple standing](https://img.money.com/2023/06/News-Property-Taxes-Seniors.jpg) Property taxes can be a serious burden on seniors who own homes and aren’t earning as much income, but a number of states are working to lower the bills for older residents — sometimes by thousands of dollars. New Jersey, where homeowners pay the [highest property taxes](https://money.com/states-highest-property-taxes/) in the nation, just became the latest state to announce a [tax break](https://money.com/states-cutting-taxes-income-groceries-gas/) for homeowners 65 and older. It won’t take full effect until 2026, but Gov. Phil Murphy announced a deal last week to cut property taxes for eligible homeowners by up to $6,500. Other states including Iowa and Washington have added or increased property tax breaks for seniors in recent months. While property taxes are generally levied by local governments, it’s common for states to provide tax breaks to seniors. According to the Institute on Taxation and Economic Policy, [more than half of U.S. states](https://itep.org/property-tax-affordability-circuit-breaker-credits/) have laws that can reduce what seniors owe in property taxes. The New Jersey plan — which still needs approval from the state’s Democrat-controlled legislative bodies — is notable not only because average property taxes in the state are over $9,500 a year for single-family homes, but also due to the fact that it’s a tax credit, versus many other states which have exemptions. ## Increase your income today with a Reverse Mortgage ### If you're 62 or older, work with a licensed Finance of America (NMLS# 2285) representative in your state today. [Learn More](https://money.com/pr/f9aaa98cdbb4?ap_referrer=%2Fstates-lower-property-taxes-seniors%2F) ## Lower property taxes for seniors The agreement in New Jersey would cut property taxes in half for seniors up to a maximum discount of $6,500, provided their income is under $500,000. Gov. Murphy said the program will be “challenging and difficult” to implement because of how much it will cost the state, but he promises to get it done. The [*New York Times*](https://www.nytimes.com/2023/06/21/nyregion/property-tax-cut-new-jersey.html) wrote that it would be “one of the largest tax cuts in state history.” Officials say their plan, StayNJ, will help seniors stay in their homes and their communities as they age. But critics like Peter Chen, senior policy director at the New Jersey Policy Perspective think tank, argue that StayNJ is "highly regressive," with well-off seniors positioned to benefit more than low-income homeowners despite some modifications from earlier versions. "An income cap at $500,000 still includes many seniors with substantial economic advantages, and tying the benefit amount to 50% of overall property tax bills continues to direct larger payments to larger homes," he wrote in a draft of Tuesday testimony to a budget committee. The New Jersey deal is different — and bigger — than many other state's property tax exemptions, like the new Iowa tax break, which has a July 1 application deadline. This year, seniors in Iowa can get a $3,250 reduction off the assessed value of their home for property tax calculations, and the amount will double for future years. But the amount that a homeowner would actually save would be much smaller. (The median annual property tax bill in Iowa is less than $2,000.) Other states have raised income thresholds this year to make tax breaks available to more seniors. In Washington, Gov. Jay Inslee signed a bill in April that increased the maximum income levels to qualify for the state’s existing exemptions, as lawmakers feared that inflation [adjustments to Social Security payments](https://money.com/bigger-social-security-checks-schedule-2023/) would push seniors’s income above the qualifying thresholds, according to the *[Seattle Times](https://www.seattletimes.com/business/real-estate/bill-would-let-more-wa-homeowners-qualify-for-property-tax-breaks/)*. ## Is a Reverse Mortgage right for you? ### Work with a licensed Finance of America (NMLS# 2285) representative today. 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