Senior Property Tax Exemptions and Income Tax Breaks You May Not Know About

Many older adults pay more in taxes than they legally have to — because they are not aware of benefits they qualify for. From higher federal standard deductions to local property tax freeze programs, there are real savings available.

Larger federal standard deduction

If you are 65 or older, the IRS allows you a higher standard deduction than younger taxpayers. For the 2024 tax year, single filers over 65 get an additional $1,950 on top of the regular standard deduction. Married couples where both spouses are 65+ get an extra $3,100 total. This means you can often reduce your taxable income significantly without itemizing.

Social Security and retirement income may not be fully taxable

Depending on your total income, some or all of your Social Security benefits may be tax-free. If your combined income (adjusted gross income + half your Social Security benefits) is below $25,000 for a single filer, your Social Security benefits are not taxed at the federal level. Between $25,000 and $34,000, up to 50% may be taxable. Many states exempt Social Security entirely from state income tax.

Property tax exemptions for seniors

Most states and many local governments offer property tax relief programs for older adults. These include: homestead exemptions (a reduced taxable value on your primary home), senior freezes (your assessed value is frozen at a set year), and circuit breaker programs (property taxes are capped as a percentage of income). These programs vary widely by location and require an application — they are not automatic.

The Credit for the Elderly or the Disabled

A federal tax credit (IRS Schedule R) is available for people 65 and older with limited income who do not receive significant Social Security or pension income. The credit reduces your tax bill directly, not only your taxable income.

Free tax preparation help

AARP Tax-Aide volunteers prepare taxes for free at thousands of sites nationally. Find a location at aarp.org/money/taxes/aarp_taxaide. The IRS Volunteer Income Tax Assistance (VITA) program offers similar free help.

Quick Tip: Your state's Department of Revenue or Department of Taxation website will list all senior property tax and income tax benefits available in your state.