13 States Where Seniors Pay Almost Nothing in Property Taxes and Living Costs Are Below Average
Even if you've paid off a home by retirement, many seniors have to pay ongoing property taxes. To reduce this burden, many states offer a variety of exemptions, tax freezes and tax credits that can reduce seniors' property taxes to almost nothing.
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These are the 13 states where seniors pay the least in property taxes, according to Realtor.com, and where living costs are also below average in the U.S., according to recent GOBankingRates research. Please note that there are other states where seniors can pay little in property taxes, but those states — Alaska, Arizona and Florida — have above average costs of living.
The state of Alabama exempts seniors from the state portion of property taxes, though county taxes may still apply. Alabama ranks as the fifth cheapest state in the U.S., with an annual cost of living at $68,006.
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Arkansas, the sixth cheapest state in the U.S., freezes the assessed value of a home or homestead for eligible seniors. This means if you purchased a home at a lower price, your property taxes won't go up. Here, the annual cost of living is $68,547.
In Iowa, the eighth cheapest state in the U.S., homeowners ages 65 and older can receive a $6,500 exemption on their home value. Here, the annual cost of living is $69,320.
Kansas, the third cheapest state in the U.S., offers a generous tax credit for up to 75% of the property taxes on a principal residence. With an annual cost of living at $67,234, this is a great deal for seniors.
Kentucky, the 17th cheapest state in the U.S., exempts $49,100 of assessed value for qualifying homeowners ages 65 or older. The annual cost of living here is $71,870.
Louisiana also offers a generous property tax assessment freeze for eligible seniors on the first $75,000 of a home's value. Louisiana is the 14th cheapest state in the U.S. where the annual cost of living is $71,252.
In North Carolina, the 28th most affordable state in the U.S., seniors can get a tax exemption on the greater of $25,000 or 50% of their home's assessed value. The annual cost of living here is $75,580.
The state of Ohio, 20th cheapest state in the U.S., exempts $26,200 of assessed value for qualified senior homeowners. The annual cost of living is $72,798.
Oklahoma, the second cheapest state in the U.S., has the most generous offer yet: The Senior Valuation Limitation freezes the fair cash value of a qualifying homestead for seniors, stabilizing property tax bills. The annual cost of living here is $66,229.
South Carolina, the 26th cheapest state in the U.S., exempts the first $50,000 in fair market value for homeowners over age 65. The annual cost of living here is $74,112.
The state of South Dakota offers eligible seniors and disabled residents a yearly refund of sales or property taxes. In the 15th cheapest state in the U.S., cost of living is $71,252 per year.
The state of Tennessee, the 11th cheapest state in the U.S., reimburses a portion or all of property taxes for eligible homeowners in the form of a tax credit. The annual cost of living here is $69,938.
Texas, the 16th cheapest state in the U.S., requires school districts to offer $10,000 homestead exemption for seniors. Local taxing offices may offer an additional exemption of at least $3,000. The annual cost of living here is $71,639.
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This article originally appeared on GOBankingRates.com: 13 States Where Seniors Pay Almost Nothing in Property Taxes and Living Costs Are Below Average
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