Property Tax Exemptions in Connecticut

Property taxes in Connecticut are among the highest in the country. According to the Tax Foundation Connecticut ranked 2nd among the states in 2009 in terms of median property taxes paid on homes with a median of $4,738 and 7th in terms of taxes as a percentage of median home value at 1.63%. However, there are property tax breaks available for certain qualifying homeowners.

Property taxes in Connecticut are administered by cities and towns, with general oversight from the Connecticut State Office of Policy and Management. Property tax relief measures may vary by location.

If you are a Connecticut homeowner age 65 or older as of December 31st of the previous year or if you are totally disabled, regardless of your age, and you own and live in your home as your principal residence you can qualify for property tax relief under the owners' program. You must have owned the home as of October 1st and must have lived in the home over 6 months.

To qualify for this property tax relief your income must not be more than $32,300 if unmarried, or $39,500 if married. Income for this purpose includes income for federal income tax purposes plus other nontaxable income such as Social Security, and it includes your spouse's income if you are married.

The amount of the credit is graduated, based on your income, and according to the State of Connecticut Office of Policy and Management can be up to $1,250 for married homeowners and up to $1,000 for single homeowners.

To claim the tax credit for elderly or totally disabled homeowners you should file the application with your local tax assessor from February 1 to May 15. You will need to provide a copy of your federal income tax return if you filed. If you did not file a tax return you may be asked to provide other proof of income. If you are claiming the benefit as disabled you must attach a Form SSA-1099 showing the Medicare deduction or if you are under age 62, a report from the Social Security Administration showing that you are disabled.

Once your application is approved it remains in effect for two years. You have to reapply biennially and should receive notification from your local tax assessor when you have to reapply. The benefit continues for a surviving spouse provided he or she does not remarry and was on the program as husband and wife prior to the death of the spouse.

Veterans who served at least 90 days during an active war period and their survivors can qualify for a veteran's property tax exemption. And if the veteran meets the income guidelines ($32,300 for single and $39,500 for married) he or she can also claim the additional veteran's exemption. The basic exemption is $1,500 and the additional exemption doubles that amount to $3,000. You should file the veteran's application with your local tax assessor from February 1 through October 1.

Sources:
Application for Tax Credits Elderly and Totally Disabled Homeowner '" State of Connecticut Office of Policy and Management
Homeowners' - Elderly/Disabled (Circuit Breaker) Tax Relief Program '" State of Connecticut
Property Tax Relief for Seniors, Veterans and Disabled State of Connecticut Homeowners '" East Haddam, Connecticut
Property Taxes on Owner-Occupied Housing by State, 2004 '" 2009 '" Tax Foundation
Question and Answer Booklet for the Homeowners' Freeze, Totally Disabled and Additional Veterans' Tax Relief Programs '" State of Connecticut Office of Policy and Management