A CFO Urges Property Tax Relief for Retirees, but the Idea Draws Pushback

For many people, taxes are only top of mind once a year, usually between Jan. 1 and April 15. For homeowners, though, property taxes can be a recurring concern that comes up throughout the year.

Those bills are collected at different points depending on where someone lives, and they can rise over time. For people on fixed incomes, including many seniors, those increases can have a major effect on everyday finances.

That concern is what led one CFO to suggest a change in how property taxes are handled for older homeowners. On Facebook, CFO on the GO proposed allowing seniors to pay a fixed amount in real estate taxes once they reach a certain age.

Not everyone agreed, though, and the comments drew plenty of debate. Some argued that anyone who owns a home outright should be able to manage the annual tax bill.

CFO Proposes Capping Property Taxes for Retirees

The CFO argued that once seniors pay off their mortgage, their property taxes should be capped so they do not keep climbing as assessments, home values, and other factors push rates higher. “The average American homeowner pays around $4,427 a year in property taxes,” he wrote. “But in some parts of the country, homeowners face annual property taxes of $10,000 to $15,000 or more. In Westchester County, NY, the average exceeds $18,000!”

He said he understands why property taxes exist and the services they help support, but believes retirees who own their homes free and clear should not have to carry the burden of funding things like schools, emergency services, and local infrastructure.

“But I also believe someone who has worked their entire life shouldn’t have to worry about being taxed out of their home during retirement,” he continued.

Critics Say Seniors Should Not Automatically Get a Break

The discussion in the comments was spirited, with people voicing strong opinions about the proposal. “If you have a home that valuable, you can use the equity in it,” one commenter wrote. “You don’t get to benefit from the rising property value without having to contribute.”

Another wrote, “The average owner pays $3,500 a year in property taxes. Yet again, it’s rich people wanting to save money pretending it’s going to benefit the poor. I would support property tax relief for the elderly with a cap on the property value of being average in the area or national averages, whichever is lower.”

Even so, there are other options for seniors who are struggling to keep up with property taxes. Kiplinger says retirees may want to look into tax credits and refunds, homestead exemptions, and even tax deferral as possible ways to reduce their burden.

Because not every option fits every situation, seniors considering any of these routes should speak with a financial professional first to determine what makes the most sense for their circumstances.