Retirees in These 7 States Could Pay Less Property Taxes Next Year

Property taxes. All homeowners pay them, but no one enjoys writing the check. That annoyance might change soon, however. Retirees in seven lucky states could see new property tax relief take effect in 2026, offering a very real chance of significantly lowering their annual tax bill.

To find these opportunities, Kiplinger searched for recently proposed or new property tax relief taking effect next year, focusing exclusively on states with significant legislation that included homeowners aged 55 and older.

Here are the seven states offering new or proposed property tax relief for retirement-aged adults in 2026.

From just $107.88 $24.99 for Kiplinger Personal Finance

Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues

CLICK FOR FREE ISSUE

Sign up for Kiplinger’s Free Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

Florida retirement property tax relief

Discussions are currently underway in the Sunshine State regarding property taxes, which could result in increased property tax relief for Florida retirees in 2026.

The most recent proposal allows homeowners to exempt $200,000 of their insured property's taxable value from non-school property taxes. This is a big deal, as local budgets across the state heavily rely on property tax revenue. Though recently passed by a Florida House committee, the plan remains just one element in the broader discussion surrounding property tax relief in the state.

Gov. Ron DeSantis has repeatedly called for the elimination of the property tax in Florida. Critics point out that property tax and sales tax make up the majority of the Sunshine State's revenue, since Florida is a no-income tax state.

Yet if any of these property tax proposals successfully pass the Florida legislature, residents will then be able to vote on the measure(s), which could secure thousands of dollars in property tax savings for retirees and other homeowners in the new year.

In the meantime, here are the current ways retiree Florida property tax bills might see some relief:

• The Florida homestead exemption. This tax break provides up to $50,722 off property taxes based on a home's assessed value (the amount is adjusted annually for inflation).
• The "save our homes" (SOH) assessment. This limitation prevents property taxes from rising higher than 3% annually (or the percentage change in the Consumer Price Index (CPI), whichever is lower).
• The "low-income senior exemption." Localities can offer an additional exemption for homeowners aged 65 and older, worth up to $50,000 (provided that income is $37,694 or less, adjusted annually for inflation).
• The "long-term resident senior exemption." This tax break applies to 65 and older adults who have resided in their homes for 25 years or more. The exemption from non-school taxes is worth up to $250,000 on the property's value (income limits apply), and localities can choose whether or not to opt in.

There are also various property tax exemptions for veterans, surviving spouses, and individuals with disabilities in the Sunshine State. For full details on all property tax breaks that may apply to you, consult the official website of the Florida Department of Revenue.

Montana retirement property tax relief

All Montana property tax owners could see new relief in 2026 — not just retirees.

Thanks to a couple of bills signed earlier this year, the new Montana "homestead" tax system will provide lower property tax rates for principal residences and long-term rentals. The average projected property tax bills for 2026 are expected to be 18% lower than 2024 bills, according to the Montana Department of Revenue.

But there is one drawback: Rates on properties that don't qualify will increase.

Here's more information about this new property tax relief for Montana homeowners in 2026:

• Most residents with a single-family home, townhome, condominium, or other qualifying property in Montana will be subject to a tiered rate system, ranging from 0.76% to 1.10% in 2026 (compared to a flat 1.35% tax rate for most residences before).
• Taxpayers who submit a homestead application to the Montana Department of Revenue website between December 1, 2025, and March 1, 2026, can qualify for this new system.
• Homeowners who qualified for the state's 2025 homestead flat rate are typically automatically enrolled in next year's tier system, but you can use the state's homestead enrollment tool to verify your tax status.
• All non-qualifying residences for the new homestead exemption (mainly short-term rentals and vacation homes) will be taxed at a flat rate of 1.9%.

Montana also offers a refundable state income tax credit for homeowners aged 62 or older with a median income under $45,000. In 2026, this credit can be worth up to $1,150. Because the credit is refundable, older adults may receive a payment even if they don't owe any state income tax. See the state's Department of Revenue website for other qualifying property tax relief programs.

New Jersey retirement property tax relief

New Jersey is one of the most expensive states for homeowners to live in, but that could change for retirement-aged adults through increased property tax relief in 2026.

The Garden State's new "older adult" property tax relief program, Stay NJ, makes its first payout early next year:

• Homeowners 65 and older who own a home for at least 12 months in a tax year could qualify.
• Household income must be $500,000 or less to qualify.
• Tax savings from Stay NJ may be up to $6,500, depending on how much you pay on your property tax bill.

Retirees in New Jersey will also continue to save on property tax bills with various other New Jersey property tax relief programs in 2026.

For instance, the state's ANCHOR program typically issues rebates in the fall of each year, worth up to $1,750, and the "Senior Freeze" program provides 65 and older adults the opportunity to "freeze" property taxes at a certain "base year" amount.

For more information, check out Kiplinger's report, What's Going on With New Jersey Property Tax Programs?

New York retirement property tax relief

New York residents may have property tax relief in the new year. Thanks to a bill recently signed by Gov. Kathy Hochul, homeowners 65 and older could qualify for a higher homestead exemption in 2026.

The higher amount extends the state's "Senior Citizen Homeowners' Exemption" (SCHE) by reducing a property's assessed value up to a 50% limit (depending on the annual income of the owners in the house, which varies locally). The property must be the homeowner's principal residence.

The new state law signed by Hochul will raise the SCHE limit to 65%, providing an average of $300 of property tax relief to retirees and others aged 65 and older, according to Hochul's office. However, it's important to note that it will be up to local jurisdictions to decide whether to raise their exemption rates.

The homeowners' exemption is just one way New York retirees can qualify for property tax relief in the Empire State. Other ways include:

• The New York STAR program, which may provide up to $5,015 in property tax relief, depending on where you live.
• The veterans exemption, which may reduce a veteran's taxable value on a primary residence by as much as $40,000 (though local maximums can increase this amount to $150,000).

See the New York State Department of Taxation and Finance website for more information on these property tax relief programs and how they might pertain to your home.

Ohio retirement property tax relief

Ohio just passed major property tax relief reform last month, impacting homeowners — and consequently retirees — in the Buckeye State. Starting in 2026, there will be $2 billion in property tax savings over three years, according to the Ohio Senate office.

New property tax relief for Ohio homeowners in 2026 includes:

• The owner-occupancy credit. Homeowners can currently claim 12.5% credit on property taxes for primary residences in 2025. By tax year 2029, that percentage will jump to 15.38%.
• Unvoted property tax hikes will be capped. This means rates in the Buckeye State will not increase significantly without voter approval in future years.
• School district tax hikes will also be limited. This provision prevents sudden property tax hikes when property values rise.

Once signed by Gov. Mike Dewine, these property tax relief provisions will work in tandem with continuing property tax relief in the state.

For instance, Ohio residents 65 and older can already reduce the taxable value of their homes if they qualify for the state's homestead exemption (up to $29,000 for taxpayers with $40,000 in income or less).

Disabled veterans may also be eligible for an enhanced exemption on property taxes (up to $58,000 and no income limit) for 100% service-related disabilities. See the Ohio Department of Taxation website for more information on state-related property tax relief for retirees.

Texas retirement property tax relief

Texas voters just received more property tax relief, but retirees in the Lone Star State could get more in 2026. That's because elections for statewide executive positions are kicking off, and with it, a property tax debate.

Current Texas Gov. Greg Abbott has published a "five-point property tax relief plan," as part of his campaign for reelection, whereby:

• School district property taxes would be eliminated.
• Property tax appraisal increases would be capped at 3%.
• A two-thirds voter approval would be required for hiking local property taxes.
• Voters could initiate rollbacks of property tax rate increases.
• State funding of public schools to replace lost school district property taxes.

However, Lt. Gov. Dan Patrick, who is also seeking re-election, has criticized the five-point plan, arguing it would inflate the state's 6.25% sales tax rate.

Patrick instead advocates for increasing the homestead exemption to $180,000. He also proposes lowering the eligibility age for the Texas homestead exemption for "older adults" from 65 to 55 years old.

The election for executive offices will come to a head on November 3, 2026, and maybe then, Texas homeowners will gain some clarity on additional property tax relief moving forward. In the meantime, here are a couple of ways for Texas retirees to save on property taxes:

• Texas homestead exemption, worth up to $140,000 for qualifying residents on their primary residences.
• Exemption for homeowners 65 and older (or disabled), worth up to $60,000 in addition to the standard Texas homestead exemption.

For more information on these and other property tax relief savings in Texas, check out Kiplinger's report, Texas Property Tax Cut Could Bring $930 in Savings on Bills.

Wyoming retirement property taxes

Wyoming homeowners may save on property tax bills next year with a new initiative appearing on the November 2026 ballot.

Earlier this year, Wyoming Secretary of State Chuck Gray certified the initiative after the state received over 30,000 valid signatures. The citizen-led proposal, titled "Limit Property Tax in Wyoming Through a Homeowner's Property Exemption," would cut residential property taxes by 50% for Wyoming homeowners who've lived in the state for at least 12 months.

Other proposals may join the homestead exemption initiative on the November 2026 ballot, but in the meantime, here are ways Wyoming retirees can save on property taxes in the Cowboy State.

• Homestead exemption of 25%. This tax benefit used to be automatic, but now requires an annual online application. To qualify, homeowners must have a property worth up to $1 million in fair market value and must have owned and lived in the home for at least 8 months of the year.
• Long-term homeowner exemption. Homeowners at least 65 and older with 25 years of property tax payments may qualify for a 50% reduced assessed value, but this provision is temporary and will expire in 2027.
• Property tax refund program. For incomes up to 145% of a county or state median, whichever is larger, homeowners may receive a refund on property taxes paid.

Stay tuned for more updates.

Read More

• States With the Lowest Property Tax
• Property Tax Cap: Does Your State Have One?
• Retirement Taxes: How All 50 States Tax Retirees
• The Most Tax-Friendly State for Retirement: Here It Is