Featuring real estate articles and information to help real estate buyers and sellers. The Nest features writings from Georges Benoliel and other real estate professionals. Georges is the Co-Founder of NestApple and has been working as an active real estate investor for over a decade.
Everyone knows how expensive it is to live in New York City and New York State. It’s one of the most expensive cities in America and worldwide. So anyone living there must try to take advantage of every tax break or exemption. One such tax break is the NYC Senior Citizen Homeowners’ Exemption (“SCHE”). Therefore, in this guide, we’ll go over everything you need to know about SCHE. For instance, this is the perfect article for you whether you’re a senior citizen, want to help out the senior citizens in your life, or want to know as much as possible about the tax laws in NYC. In this guide, we’ll look at what the NYC Senior Citizen Homeowners’ Exemption is. Who’s eligible for the NYC Department of Finance Senior Citizen Homeowner Exemption?
How to estimate what your tax exemption would be, and more. For the sake of our readers, we will be presenting this information as if you’re looking into the tax exemption for yourself.
First, as the name suggests, the New York City Senior Citizen Homeowners’ Exemption is a tax break designed for senior citizen homeowners. More specifically, it’s a tax break that helps out older citizens who own a one-, two-, or three-family home in NYC.
Therefore, at its core, the SCHE offers older citizen homeowners a potential reduction of 5% and 50% of the property tax on their home(s). In NYC, getting a tax break of up to 50% of your property value can be substantial. However, not everyone qualifies.The Senior Citizen Homeowners’ Exemption allows seniors (age 65 or older) with an annual income of $58,399 or less to reduce the property tax bill on their primary residence in NYC. This is accomplished by reducing the taxable assessed value of a qualifying senior’s home by up to 50%.
So let’s take a look at the eligibility requirements of this exemption so you know if you can take advantage of this.
As mentioned before, not everyone is eligible for the NYC Department of Finance Senior Citizen Homeowner Exemption. Eligibility is based on age, income, residency, and property ownership.
Therefore, to be eligible, you must meet all of the qualifications listed below:
Regardless of whether or not you meet the above qualifications, the following list comprises the things that will automatically disqualify you from receiving the benefits of the SCHE.
Therefore, if any of the following three things are true for you, then you are not eligible:
You are eligible for the tax break if you meet all the eligibility requirements and don’t meet any automatic disqualifiers.
First, taxes are one of the most confusing times for just about everyone who pays taxes in this country. All the different forms come in through the mail and e-mail. Then, various streams of income that you need to keep track of.
Do you owe money, or will you be getting a refund? Which tax breaks or exemptions do you qualify for?
When you’re talking about the Senior Citizen Homeowners’ Exemption, you’re talking about potentially saving a lot of money.
So even though it can be stressful to keep track, it’s essential to use every break. Thankfully, to make this easier, New York City makes the SCHE reduction reasonably simple to estimate.
So you must nail down your total income and take all the deductions on your income that you can also.
Ensuring you take advantage of everything you can means a big difference, financially speaking, when tax time comes around.
As a quick note to drive this point home, if you barely qualify for the exemption with an income of $58,000, you’ll get to reduce your property tax bill by 5%. However, if you can write off $8,000 of income and bring your combined income down to $50,000, you’ll be able to reduce that property tax year by a whopping 50%. So that’s how quickly this tax break scales.
So without further ado, here is the breakdown of what the NYC Senior Citizen Homeowners’ Exemption can do for you. Therefore, take advantage of everything you can, and best of luck come tax time:
|Income Range – Tax rate||SCHE property tax exemption by|
|$58,400 and Above||Ineligible|
|$57,500 – $58,399||5%|
|$56,600 – $57,499||10%|
|$55,700 – $56,599||15%|
|$54,800 – $55,699||20%|
|$53,900 – $54,799||25%|
|$53,000 – $53,899||60%|
|$52,000 – $52,999||35%|
|$51,000 – $51,999||40%|
|$50,001 – $50,999||45%|
|$50,000 and Less||50%|