Surprising Retirement Havens: States That Offer Property Tax Breaks (and a Lower Cost of Living)
- Author: Russell Sawayn
- Posted: 2025-06-20
When you think of retirement hotspots, California and New York often come to mind, with sunshine, entertainment, and top-tier healthcare.
But for many retirees, especially those on fixed incomes, high property taxes in these states can eat into retirement savings fast.
So, what if you could enjoy your golden years somewhere that helps you keep more of your money?
Why Property Tax Relief Matters in Retirement
As you transition into retirement, every dollar counts.
Property taxes, one of the largest recurring homeownership costs, can vary wildly depending on where you live.
Fortunately, some states are stepping up to make retirement more affordable.
States That Stretch Your Retirement Dollar
From the Midwest to the South, there’s a growing list of retirement-friendly states offering real financial relief.
- Oklahoma: Freezes property tax values for homeowners aged 65 and up. This means rising home prices won’t increase your tax bill.
- Kansas: Offers up to a 75% property tax rebate for eligible seniors.
- Kentucky: Exempts more than $49,000 of your home’s value from taxation.
- Iowa: Provides a $6,500 deduction in assessed home value.
- Texas: While there’s no state property tax, school districts must offer seniors a minimum $10,000 exemption, with the potential for more.
- Colorado & South Carolina: Offer some of the most generous exemptions, including up to $50,000 or more in home value.
- Georgia & Nebraska: Tie exemptions to income, prioritizing lower-income retirees.
Read: More Property Tax Relief Is Coming for Select U.S. Citizens
What to Know Before You Pack Up
Keep in mind:
- Most exemptions aren’t automatic—you’ll need to apply.
- These tax breaks usually apply only to your primary residence.
- Income limits or age restrictions often apply.
The Bottom Line
If retiring in comfort and with peace of mind is on your wish list, it’s worth looking beyond the usual coastal states.
Places like Kansas, Oklahoma, and South Carolina could offer the same comfort at a fraction of the cost.
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