What To Know About The Expanded Senior Citizen Property Tax Exemption

New York enacted legislation on Dec. 5, 2025 that allows taxing jurisdictions throughout the State of New York to offer an expanded real property tax exemption to persons over the age of 65. Towns, villages, cities, counties and school districts now have the option to offer real property tax exemptions of up to 65% to senior citizens who meet applicable income eligibility criteria. The maximum exemption under Section 467 of the Real Property Tax Law was previously limited to 50%.

Because this expanded exemption is optional, taxing jurisdictions wishing to implement it must do so by adopting a local law or, in the case of school districts, through a Board of Education resolution. Once implemented, the enhanced exemption will go into effect on the next taxable status date for that jurisdiction. For most jurisdictions, the taxable status date is March 1 of each year. In Nassau County, the taxable status date is January 2. Jurisdictions in Westchester County have either a May 1 or June 1 taxable status date, and the taxable status date for cities is set by the city charter and may vary. School districts wishing to implement the expanded exemption should contact their respective assessors for guidance on the applicable taxable status date(s).

Jurisdictions wishing to implement the expanded exemption may also wish to review their criteria for what constitutes income for purposes of qualifying for the exemption. Section 467 of the Real Property Tax Law allows a taxing jurisdiction to determine whether social security benefits, distributions from an individual retirement account or individual retirement annuity, or tax-exempt interest or dividends are included in the jurisdiction’s income calculation for individuals seeking the exemption. Similarly, jurisdictions may elect to offset individuals’ income by all medical and prescription drug expenses actually paid that were not reimbursed or paid for by insurance. These criteria, and whether they factor into the jurisdiction’s income calculation for purposes of determining eligibility for the exemption, should be set forth in the local law or resolution implementing the exemption.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.