Tax Efficient Retirement Strategies

Since 2019, property taxes have increased nearly 30% nationwide and U.S. homeowners are feeling the pinch. In one survey, 66% say their bill was higher than they had budgeted and 74% worry about paying even more in the near future.¹ Property tax increases can place an outsized burden on older homeowners—especially retirees on fixed incomes. If you’re among a growing number of seniors seeking ways to help lower your property tax burden, consider the following tips:

1. Time major renovations. Home improvement projects that require permits like additions, kitchen renovations, or replacing aging electrical and plumbing systems can increase your home’s resale value. However, because these upgrades are taken into consideration when assessing the value of your home for tax purposes, they can lead to property tax increases. While you may not be able to permanently avoid a tax increase when making upgrades, timing these improvements until after an upcoming assessment could delay a property tax increase by a year or more, until your next scheduled assessment. 

2. Review or appeal your assessment. If you believe your property's appraised value is incorrect, you have the right to appeal it. However, the appeal process can be lengthy and usually requires hiring a lawyer, which can be costly. Start by requesting an informal review if your jurisdiction allows. Most local or county tax collectors provide homeowners with a 30-day window following receipt of a notice of real estate assessed value to discuss the results with the assessor's office. If an informal review does not resolve the issue, and you feel strongly that your assessed value is inaccurate, filing an appeal may be warranted. However, there’s no guarantee that it will reduce the appraised value. 

3. Explore tax relief programs for seniors. Programs administered at the local, state, and federal levels, such as homestead, senior citizen, disability, and veterans’ exemptions, can make it more affordable for qualifying homeowners to remain in their homes. For example, North Carolina’s Elderly or Disabled Homestead Exemption allows property tax exclusions of either $25,000 or 50% of the taxable value of the residence (whichever is greater) for senior adults and disabled individuals whose incomes are less than $37,900.² In Florida, qualifying property owners may be eligible to receive a homestead exemption that would decrease the property’s taxable value by as much as $50,000. This exemption also qualifies the home for Florida’s Save Our Homes assessment limitation where homeowners may be able to transfer or “port” all or part of the assessment difference to a new Florida homestead.³ Visit your state or county’s Department of Revenue website to learn about programs in your area.

To learn more about tax efficient retirement strategies, call the office to schedule a time to talk or sign up on our calendar at www.calendly.com/kfn. 

^{1) Carbonaro, Giulia, “America’s Property Tax Headache.” 5 MAY 2025, Newsweek.com,  https://www.newsweek.com/america-property-tax-headache-2065595.
2) Elderly or Disabled Homestead Exemption, Cao.mecknc.gov, https://cao.mecknc.gov/tax-relief-programs/property-tax-exclusion-elderly-or-disabled. Accessed 22 JUL 2025.
3) Property Tax Exemptions and Additional Benefits, Floridarevenue.com, https://floridarevenue.com/property/Pages/Taxpayers_Exemptions.aspx. Accessed 22 JUL 2025.}