Seniors whose income is low were burdened by the property tax of their house, thus, more states are working for property tax breaks for old homeowners.
Iowa and Washington are just some of the states who advanced in increasing property tax breaks for seniors in the previous months.
Among the states, New Jersey had the highest property taxes paid by its homeowners. Recently, it became the last state to declare a property tax break for seniors ranging from the age of 65 and above.
Phil Murphy, the governor of New Jersey, said that the property tax break will take effect in 2026 but he made a deal last week that for eligible homeowners, their tax will be cut by up to $6,500.
The Institute on Taxation and Economic Policy stated that the majority of the states in the US have laws that mandate the reduction of property taxes for seniors. It is common among the states to have tax breaks, aside from property tax, for seniors.
New Jersey Property Tax Breaks
The plan of New Jersey is noteworthy because it’s a tax credit apart from the fact that for single-family homes, property taxes are over $9,500 a year. But this plan needs to be approved first by the Democrat-controlled legislative bodies.
StayNJ or New Jersey Plan, will aid the seniors to remain in their houses as they old.
Gov. Murphy said that the plan will be difficult on their part due to the amount that the state will be losing. They will reduce property taxes by half for the seniors to $6,500 if their income is under $500,000.
From the perspectives of some financial analysts, New Jersey Plan is challenging compared to the property tax exemptions of other states. As the New York Times wrote that it would be “one of the largest tax cuts in state history.”