New York Boosts Senior Property Tax Exemptions to 65% to Address Rising Costs

New York Governor Kathy Hochul has signed legislation expanding property tax exemptions for seniors, allowing them to receive up to a 65 percent exemption on assessed property values if they meet local income eligibility criteria. This legislative update replaces the previous exemption cap of 50 percent, a limit that had been unchanged for decades.

The measure aims to alleviate the financial pressure on senior homeowners who face rising property taxes amid increasing housing costs, including escalating homeowners insurance premiums and higher borrowing costs. Nationwide, property taxes have increased substantially, with data from Cotality and CoreLogic showing a rise of over 26 percent since 2019 and a further 5.5 percent increase from 2023 to 2024.

New York State’s property tax rate is significantly above the national average, with an effective rate of 1.64 percent compared to 0.90 percent nationally, and median tax bills exceeding $6,300. The new exemption law is projected to save the average senior homeowner up to $300 annually, providing critical relief to the state's more than 1.8 million senior homeowners.

Officials involved in the legislation emphasize its role in enabling seniors on fixed incomes to remain in their homes and communities, addressing affordability issues intensified by inflation and housing market pressures. However, the legislation specifically targets seniors and does not extend benefits to first-time homebuyers who continue to face substantial tax burdens.

This development aligns with broader state and national trends of seeking tax relief measures amidst post-pandemic property value surges and corresponding tax increases. Local governments in New York are now empowered to implement the enhanced exemption based on eligibility, potentially influencing senior housing stability and financial planning across the state.