Law gives localities power to lift tax relief cap for certain owners
New York seniors on fixed incomes face a little less pressure from rising housing costs after Governor Kathy Hochul signed a law that let local governments deepen property tax exemptions for older homeowners.
The measure, S5175A/A3698A, allows counties, cities and towns to raise the maximum real property tax exemption for eligible seniors from 50% to as much as 65% of a home’s assessed value.
The change arrived as property tax bills, insurance premiums and borrowing costs have climbed faster than incomes in many high-cost markets, squeezing older borrowers who own their homes outright but still carry heavy tax obligations.
"No New York senior should lose their home because they can no longer afford their property taxes," Hochul said.
"By signing this legislation, we are working to make New York more affordable for our seniors on fixed incomes and empowering them to age in place, at home, in the communities they know and love."
New framework hinges on local opt-in
The law gives municipalities discretion rather than imposing a statewide mandate.
"The bill will give localities the option to offer real property tax exemptions of up to 65 percent to seniors living below the maximum income eligibility level set by the locality," the governor’s office said.
Prior to the change, the cap sat at 50% "and has not been raised in decades," the governor’s office said. Officials estimate that increasing the exemption "could translate into savings of up to $300 annually for the average senior."
"Seniors have faced rising housing costs and inflation - oftentimes living on fixed income," state senator Leroy Comrie said.
"Signing S5175A into law is an important step toward restoring real affordability for older adults across New York."
Impact for mortgage and housing professionals
Assemblymember David Weprin said the law would "provide relief from the burden of increasing real property taxes and ensure stability for elderly homeowners on low fixed incomes."
Greg Olsen, acting director of the New York State Office for the Aging, said "this important law will continue to help older adults remain in the homes and communities of their choice and keep their vast contributions within New York State."
For mortgage brokers and lenders, the measure underscores a widening policy focus on long-term homeowners alongside first-time buyers, and put a new local variable into New York tax planning.
How aggressively municipalities adopt the higher exemption would help determine whether aging borrowers could afford to stay put or be forced back into a market still defined by elevated rates and high prices.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
