Tax Exemptions for Seniors and Disabled Residents: What You Need to Know
Property tax exemptions and relief programs in Delaware can help seniors and disabled individuals save significantly on their tax bills. Here’s a complete guide to the available options by city, including eligibility requirements and application details.
Section 3-2: Qualifications and Amount of Exemption
For Seniors (65+ Years Old):
- Must be a resident of the city.
- Income cannot exceed $20,000 per year.
- Must reside in and own the home, which is part of the real property.
- Household income for all residents in the home cannot exceed $25,000 per year.
- Maximum exemption: $40,000 assessed valuation on the property.
For Disabled Residents:
- Must be disabled by December 31 of the pre-tax year.
- Income cannot exceed $20,000 per year.
- Must reside in and own the home, which is part of the real property.
- Household income for all residents in the home cannot exceed $25,000 per year.
- Maximum exemption:
- $40,000 assessed valuation.
- An additional exemption of $40,000 for loss of limbs or use of limbs requiring home modifications (total exemption up to $80,000).
Delaware School Property Tax Relief Program for Seniors
Seniors in Delaware may qualify for a 50% tax credit (up to $400 annually) on their school property taxes. This program applies to primary residences only.
Eligibility Requirements:
- Age: Must be 65 years or older.
- Residency:
- If you established domicile in Delaware before January 1, 2013, you automatically qualify as a resident for this program.
- If you moved to Delaware after January 1, 2013, you must be a resident for three consecutive years before applying.
- Property Tax Payments: Must pay your property tax bill in full to be eligible for the following tax year.
- ID Requirements: Must have a valid Delaware driver’s license or state ID.
Application Process:
- Deadline: Applications must be submitted by April 30.
- How to Apply:
- Visit the Senior School Property Tax Relief website.
- Download the application here.
- Contact for Assistance:
- Kent County Office: (302) 744-2341
Special Note for City of Dover Residents
Dover provides additional tax relief for seniors age 60 and older, offering a deduction of $50,000 from the assessed value of your property.
Eligibility Requirements:
- Must have attained 60 years of age by March 1, 2019.
- Must be the sole owner of the property as of March 1, 2019, and reside on the property.
- Property must be used for residential purposes only.
- City taxes must be current—any outstanding balances will result in denial of the reduction.
- Yearly Income Limits:
- Individual: $19,148 or less
- Couple: $26,858 or less
Application Information:
For additional details or to request an application:
- Phone: City of Dover at 302-736-7022
Tax Payments and Senior Exemptions in the City of Milford
Tax Payments
- Tax Year: October 1 to September 30 of the following year.
- Billing and Deadlines: Annual tax bills are mailed in August and due by September 30.
- Late Payments: A penalty of 1% per month is charged on delinquent taxes.
- To pay taxes online, search by parcel number, owner name, or street address using the online tax portal.
Senior Tax Relief in Milford
- Eligibility:
- Must be 65 years or older.
- Income cannot exceed $20,000 per year from all sources (including capital gains, pensions, and annuities), excluding Social Security and certain government-sponsored post-retirement benefits.
- For joint property owners or spouses, the combined income must not exceed $40,000.
- Must own and reside in the property for at least one year prior to October 1 of the current year.
- Exemption Amount: $40,000 assessed valuation on the property.
- Application Process:
- File the application with the Customer Service office annually by May 31.
- Provide proof of income, excluding Social Security and railroad pensions.
- Contact Information:
- Department: Customer Service
- Email: customerservice@milford-de.gov
- Phone: 302-422-6616
Wilmington Tax Relief for Seniors and Disabled Residents
Wilmington offers multiple tax relief programs designed to help seniors and disabled residents with property tax exemptions and other benefits.
- Property Tax Exemption: Seniors aged 65+ can receive a $565 annual exemption on their property taxes and discounts on water/sewer bills. Eligibility is based on age, income (up to $15,000 for single persons or $19,000 for married couples), and ownership of the property.
- Senior Property Tax Assistance Program: This program helps seniors 62+ who face foreclosure due to unpaid property taxes or water/sewer bills. Grants of up to $3,000 are available to assist with delinquent payments.
- County and School Tax Savings: Seniors may also qualify for a $500 school tax credit, regardless of income, and other county savings.Wilmington also provides a variety of other services and assistance programs designed for seniors:
- Smoke and Carbon Monoxide Detectors: Free hard-wired detectors are available for senior citizens and persons with disabilities. Contact the State Fire Marshal’s Office at 323-5375 or the Wilmington Fire Department at 576-3120.
- Disaster Planning and Assistance: For disaster preparedness, call the Wilmington Emergency Preparedness Office at 576-3914.
- Crime Prevention and Personal Safety: Learn about safety programs offered by the Wilmington Police Department by calling 576-3189.
- Home Repair Program: The Wilmington Department of Real Estate & Housing offers a home repair program for seniors. Call 576-3000 for more details.
- Free Electric Fan Program: Seniors in the City of Wilmington can receive a free electric fan through the Mayor’s Office. For more information, call 576-2489.
For more details or to apply, seniors can contact Wilmington’s Department of Finance at (302) 576-2400 or visit the official website.
New Castle County Senior Tax Exemption
New Castle County offers a variety of tax exemptions and benefits for qualifying seniors, helping reduce property taxes and provide additional services.
Qualifications for Tax Exemption:
- Age: Must be at least 65 years old before July 1 of the tax year.
- Property Ownership: Must own and live in the property as the primary residence.
- Income: Must have an annual income of $50,000 or less.
- Property Value: Assessed value of the property must be $125,000 or less.
- Residency: Must have lived in Delaware for at least 10 consecutive years prior to October 1 of the tax year.
- Payment Status: Property taxes and sewer charges must be fully paid or payments must be actively made.
Benefits:
- Tax Reduction: Receive a reduction of up to $32,000 in taxable property value (excludes local taxes).
- Sewer Charges:
- For exemptions granted before 2007, a $36 fee is applied.
- For those granted in 2008 or later, pay 50% of the total charges or the minimum bill.
- Sewer Lateral Cleanout: Reimbursement of up to $75 for clean-out costs.
- Social Security Waiver: Social security pensioners have additional time to pay without penalty.
State Senior School Property Tax Credit:
- Eligibility: Same as above, with additional requirements depending on when you moved to Delaware.
- Benefit: 50% credit on school taxes, up to $500.
Community Services:
- Emergency Home Repair Loan: 0% interest with deferred payments for those who qualify.
- Small & Large Home Repair Loans: 0% interest and deferred payments based on income level.
Final Thoughts
Delaware offers a variety of tax relief programs tailored for seniors and disabled residents. Each city has specific qualifications and deadlines, so it’s essential to stay informed and act quickly.
For more information or assistance, reach out to the relevant city office or department. Taking advantage of these programs can help you save significantly on your property taxes!
