As homeowners age, effectively managing finances becomes increasingly crucial, particularly concerning property taxes. Delaware recognizes this need and offers a beneficial program called the Senior School Property Tax Relief. This initiative is tailored specifically for homeowners aged 65 and over, providing them with substantial financial relief. By participating in this program, eligible seniors can receive a tax credit that reduces their regular school property taxes, easing their financial burden and helping them maintain their homes more comfortably.
Overview of the Tax Credit
Homeowners aged 65 and older can take advantage of a 50% tax credit on their regular school property taxes, with the credit capped at $500. This benefit is specifically designed for primary residences, so it's crucial for seniors to verify that their home qualifies under this program. By doing so, they can significantly reduce their financial obligations and more easily manage their expenses in retirement.
Program Changes Effective 2017
Effective July 17, 2017, Governor Carney signed HB 99, introducing key changes to the Senior Property Tax Relief Program:
Ten-Year Residency Requirement:
- New applicants who establish legal domicile in Delaware on or after January 1, 2018, must be residents for at least 10 consecutive years.
- Those who established domicile between January 1, 2013, and December 31, 2017, need only 3 consecutive years.
- Applicants domiciled in Delaware before January 1, 2013, are eligible for the credit in the following tax year
Eligibility
To qualify for the Senior School Property Tax Credit:
- You must be 65 years or older.
- The property must be your primary residence.
- All property taxes must be paid in full by the end of each tax year to qualify for credits in subsequent years.
- The application deadline is April 30th each year
Application Steps
- Seniors must fill out an application form available through their county’s tax office. Tax Credit application here.
- A valid driver’s license or state ID is required at the time of application.
- Applications should be submitted to the county in which you reside.
Receiving Your Credit
Once approved, the tax credit will be deducted directly from your property tax bill before it is mailed out by your county. Importantly, seniors do not need to reapply each year unless they move; if relocating, they should contact their county’s property tax office for guidance on maintaining their credit status
Married Couples
- If one spouse is over 65 and the other is not, the couple can still apply for the full credit as long as they own the property together.
- Only one credit can be granted per property each year, regardless of ownership status
Co-Ownership Scenarios
For co-owners who are both over 65 but not married:
- Each co-owner can claim a credit; however, only one full credit may be applied per property.
- The amount of credit will be proportional to each person’s ownership interest in the property
Conclusion
The Senior School Property Tax Relief program in Delaware provides valuable financial assistance to senior homeowners. By understanding eligibility requirements and navigating the application process effectively, seniors can significantly reduce their property tax burden. For more information and assistance with applications, seniors are encouraged to contact their local county tax office or visit relevant state resources.
