How Can Seniors Reduce Their Property Taxes?
Certain taxpayers are affected more by property taxes than others, due primarily to varying income levels and high tax rates. One of the most heavily effected demographics of taxpayers who feel the brunt of tax obligations on their annual finances are senior citizens. Many senior citizens have less earning power since most are on a fixed income, retired, and/or dependent on limited revenue streams from social security and retirement plans. To mitigate the impacts of property taxes on their annual income, many seniors move to states outside of the Northeastern states to states like Florida, where property tax rates are significantly lower.
However, most senior taxpayers may not want to move away and might be quite content living out their golden years in the home where they raised a family and built various personal relationships. For these seniors, there are options in several states to reduce real estate tax obligations, including elderly tax exemptions. For instance, New Hampshire has a few different exemptions that can help retirees age 65 an older; though the below criteria must be met in order to utilize them:
Be a New Hampshire resident for at least three consecutive years
Own real estate jointly or individually and must be married for at least five years if owned by the spouse.
Meet the income and asset limits set forth in the table below
In New Hampshire, senior taxpayers also have the right to apply for a tax deferral once they reach the age of 65 and own the homestead for at least 5 years. Assessors may grant a full or partial deferral of taxes plus 5%; if it is determined that the tax liability causes an undue hardship to the taxpayer. The total tax deferrals cannot exceed 85% of the equity value of the property as well. The deadlines for filing are April 15 for tax exemptions and March 1 for tax deferrals.
For more information on elderly and senior property taxes, please contact Allobar Strategies. Allobar Strategies, a property tax consulting firm that assists tax payers with filing tax abatements and also is affiliated with the Alfano Law Office, PLLC, an experienced commercial, real estate and business law firm offering legal services to individuals, businesses and institutions in New Hampshire.