Moving to Save Money? Don’t Forget Property Taxes

If you’re thinking about moving to save a little money…

For many retirees, the math sounds simple: sell the family home, downsize, and stretch your dollars somewhere warmer or cheaper.

But one cost often slips through the cracks — property taxes.

A low-priced bungalow in Florida or Texas might look like a steal until you find out the new county taxes at double the rate of your old one. On the other hand, a modest condo in Alabama or Kentucky might come with senior exemptions that nearly wipe out your property tax bill.

They’re local, they vary wildly, and senior exemptions can swing the math by thousands.

How much property taxes vary

Property taxes are set locally, not nationally. According to the Tax Foundation, average effective rates in 2024 ranged from about 0.3% in Hawaii to 2.3% in New Jersey.

That means a $250,000 home could cost anywhere from $750 to nearly $6,000 a year — depending entirely on where you move.

States with senior-friendly tax breaks

(Examples, not an exhaustive list)

• Alabama: Age 65+ are exempt from the state portion of property tax, though county and city taxes may still apply.
• Kentucky: “Homestead exemption” knocks $49,100 (2025–2026) off your home’s assessed value if you’re 65+.

• New York: The Enhanced STAR program gives school-tax relief for seniors with incomes up to $107,300 in 2025.
• Texas: Homeowners 65+ get a $10,000 school-tax exemption plus a school-tax ceiling (freeze) once they qualify; some local governments add their own exemptions.
• Florida: Counties can offer extra senior homestead exemptions (typically $25,000–$50,000). The income cap is set annually by the state, and some counties grant larger exemptions for long-term residents.
• Colorado: The Senior Property Tax Exemption covers 50% of the first $200,000 of a primary home’s value, when funded by the legislature.
• Maine: The old senior “freeze” was repealed, but seniors can still claim the Property Tax Fairness Credit and Homestead Exemption.

(Sources: Tax Foundation, Newsweek, Realtor.com, and state revenue departments.)

Hidden gotchas

Not every “low-tax” state is a deal once you unpack the details.

• Some require you to live there a full year before claiming the exemption.
• Many have income limits, excluding wealthier retirees.
• School or county taxes may still apply even if the state waives its share.
• HOA fees or insurance can eat up the savings, especially in coastal states.

Pro Tip: Most exemptions are handled by your county assessor, not the state. But state revenue offices can direct you to the right local contact — and many will even help walk you through the application. Application deadlines and forms vary by county.

Smart move: check before you pack

Before you put your house on the market, take ten minutes to search:
“senior property-tax exemption” + [state name]

Visit the county assessor’s site, or better yet, call. If the website feels like a maze, ask directly for the assessor’s office, not the treasurer — assessors typically handle exemptions.

If you find a state that fits your budget and offers age-based relief, the savings can last for life — freeing up money for travel, family, or just a little extra peace of mind.

Last updated: November 12, 2025
Disclaimer: This article is for informational purposes only and does not constitute financial or legal advice. Tax laws vary by state and county; consult your local tax authority or a qualified advisor before making any real-estate decisions.