December 12, 2025
For many older homeowners living on fixed incomes, property taxes are one of the biggest monthly strains. More than 1.8 million seniors in New York own their homes, according to Greg Olsen, acting director of the New York State Office for the Aging. For many of these seniors, rising tax bills have made it harder to afford staying in their homes.
State lawmakers and Gov. Kathy Hochul just passed and signed legislation S5175A/A3698A. This new law gives local governments the option to raise the senior property tax exemption from 50% up to 65% of a home’s assessed value — the first increase in decades.
The exemption isn’t automatic; each locality must choose to adopt it, and income eligibility limits will continue to be set at the local level. The expanded exemption applies to taxable years beginning January 1, 2026.
Property taxes have been climbing nationwide, driven in part by the pandemic-era surge in home values.
These higher tax bills are hitting homeowners at a time when many are already stretched thin by elevated mortgage rates, rising insurance premiums, and increasing HOA fees. For seniors living on fixed incomes, the impact is even more severe. More than 1.8 million seniors own homes in New York, and many are finding it increasingly challenging to keep up with these growing costs.
That’s why New York’s expansion of the senior property tax exemption matters. By allowing local governments to increase the exemption up to 65% of a home’s assessed value, the state is giving older homeowners a critical tool to reduce their annual housing expenses. Even an average savings of around $300 per year can help seniors stay in their homes and maintain stability as they age.
Ultimately, this change supports the ability of older adults to age in place, remain in their communities, and better manage the rising cost of homeownership.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
