New York raises senior property tax exemption to 65%

New York Gov. Kathy Hochul has signed legislation to expand property tax exemptions for seniors to up to 65% of their home’s assessed value, raising the ceiling for the first time in decades from the previous 50% cap.

“No New York senior should lose their home because they can no longer afford their property taxes,” Hochul said in a statement. “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.”

Under the new law, S5175A/A3698A, localities now have the option to offer exemptions of up to 65% for seniors who fall below the maximum income eligibility thresholds set at the local level. State estimates suggest that increasing the exemption could save the average senior about $300 annually.

Greg Olsen, acting director of the New York State Office for the Aging, noted that more than 1.8 million older adults in New York own their homes, and he said that “property taxes, especially for those on fixed incomes, can often be difficult to afford.”

The bill was approved in the New York State Senate in June. Effective immediately, the legislation will apply to taxable years beginning on and after Jan. 1, 2026.

According to reporting from Realtor.com, besides New York, 14 other states and the District of Columbia offer some form of property tax exemptions for older homeowners. These include Alabama, Alaska, Florida, Georgia, Indiana, Iowa, Kentucky, Mississippi, Nebraska, North Carolina, Ohio, South Carolina, Texas and Washington.

But the type of relief varies widely by state.

New York provides an exemption that reduces the portion of a home’s value that is taxed. Other states exempt only the state-level portion of the tax bill, while some exclude a certain dollar amount — such as the first $150,000 of assessed value.

Others freeze tax bills to protect seniors from increases, offer credits to reduce the amount owed or allow tax deferrals in exchange for a lien on the property.

Budget pressures can put these programs at risk. For example, in Colorado — where the budget deficit reached $1.2 billion in 2024 — state legislators were urged in an open letter to preserve a property tax exemption for older adults and disabled veterans despite fiscal constraints.