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By Giulia Carbonaro
Senior Reporter
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New legislation signed by New York Governor Kathy Hochul will allow seniors living in the state to receive up to 65 percent in property tax exemption, a measure that she said should "make New York affordable" for those struggling with higher bills.
Newsweek contacted Hochul’s office for comment by email on Monday morning, outside of standard working hours, but received information on background rather than an official comment.
Why It Matters
Property taxes have climbed all across the country in the years following the pandemic home-buying frenzy, which sent home values through the roof.
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In 2023, according to data by Cotality, median property taxes in the U.S. were up 26.3 percent from 2019 for homeowners who had their properties reassessed. From 2023 to 2024, they rose another 5.5 percent nationwide, according to CoreLogic.
Higher property tax bills have been weighing heavily on homeowners already struggling with other rising housing costs—including elevated borrowing costs, higher homeowners insurance premiums and homeowners association (HOA) fees.
That is why several states—mostly GOP-led ones—have been trying to pass legislation slashing or even eliminating property taxes this year.
What To Know
The new legislation signed by Hochul over the weekend, S5175A/A3698A, allows local authorities in New York to provide a "real property tax exemption" of up to 65 percent of the assessed value of their properties to seniors who meet the income eligibility limits, among other criteria.
In order to be eligible, senior homeowners must be living below the maximum income eligibility level set by the locality they live in.
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Before the introduction of this new legislation, the maximum percentage of exemption local governments have been able to offer senior citizens was set at 50 percent—a cap that had not been raised in decades.
According to the governor’s office, the new legislation could translate into savings of up to $300 annually for the average New York senior. But it is very difficult to determine the number of seniors in New York this law would affect, because its impact would depend on localities' decision to opt in.
What People Are Saying
Governor Kathy Hochul said in a statement: "No New York senior should lose their home because they can no longer afford their property taxes. By signing this legislation, we are working to make New York more affordable for our seniors on fixed incomes and empowering them to age in place, at home, in the communities they know and love."
State Senator Leroy Comrie said in a statement shared by the governor’s office: "Seniors have faced rising housing costs and inflation—oftentimes living on fixed income. Signing S5175A into law is an important step toward restoring real affordability for older adults across New York."
Carlina Rivera, president and CEO of New York Association-Affordable Housing, the non-profit trade association representing the affordable housing industry in New York, told Newsweek of the bill**:** "It is crucial for New York to develop creative and impactful solutions that preserve and create affordable housing for people of all ages. This measure plays an important role in maintaining affordable housing for seniors and is part of a comprehensive approach to solving the housing crisis.
"To make New York affordable for residents and families of all ages, we strongly support efforts that remove barriers and lower costs that hinder increasing the supply of new affordable housing units."
New York State Office for the Aging acting director Greg Olsen said in a statement shared by the governor’s office: "Governor Hochul is coming through yet again on making New York more affordable for individuals and their families."
He added: "Property taxes, especially for those on fixed incomes, can often be difficult to afford. With more than 1.8 million older adults who own their own homes, this important law will continue to help older adults remain in the homes and communities of their choice and keep their vast contributions within New York State."
What Happens Next
Property taxes in New York are considerably higher than at the national level, according to SmartAsset data, with the state’s effective tax rate—1.64 percent—being nearly double the national average of 0.90 percent. The median tax bill is over $6,300.
But while seniors on fixed-income in the state will certainly benefit from a higher exemption, they already could take advantage of some exemptions. First-time homebuyers, on the other hand, who are facing a high tax burden will not see any benefit from this new legislation.
Update 12/10/2025 3:55 a.m. ET: This article was updated to include a comment from Carlina Rivera.
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