Introduction
Delaware offers a Senior School Property Tax Credit to help residents aged 65 and older reduce their property tax burden. Eligible homeowners can receive a credit of up to $500 against school district property taxes.
This guide explains who qualifies, how to apply, and how to maximize this tax benefit.
What Is the Delaware Elderly Tax Credit?
The Senior School Property Tax Credit is available to Delaware residents aged 65+ who own and live in their primary residence. The credit applies to school property taxes, which make up a significant portion of local property taxes.
How Much Is the Tax Credit?
- The maximum credit is $500.
- The credit reduces school property tax liability but does not cover county or municipal property taxes.
Who Qualifies for Delaware’s Elderly Tax Credit?
To be eligible, you must:
- Be at least 65 years old before the tax year deadline.
- Own a primary residence in Delaware.
- Have lived in the state for at least 10 years (as of 2022, increased from 3 years).
- Pay school property taxes on the home.
Exceptions & Special Cases
- If you lived in Delaware for at least 3 years but less than 10 years, the credit is limited to 50% of school property taxes (up to $500).
- The property must be in your name, a trust, or jointly owned with a spouse.
How to Apply for Delaware’s Senior Property Tax Credit
Step 1: Obtain the Application Form
- The application form is available from your county’s tax office or the Delaware Division of Revenue.
Step 2: Gather Required Documents
You will need:
- Proof of age (Driver’s License, Birth Certificate, or Passport).
- Proof of property ownership (Deed or Property Tax Bill).
- Residency documentation (utility bills, Delaware state tax returns).
Step 3: Submit the Application Before the Deadline
- The deadline to apply is April 30 of the tax year.
- Applications must be submitted to your county tax office (New Castle, Kent, or Sussex County).
Step 4: Receive the Tax Credit on Your Property Tax Bill
- Once approved, the credit will automatically reduce your school property tax liability on your next bill.
How to Maximize Property Tax Savings as a Senior
- Apply for the Elderly Tax Credit early to ensure timely approval.
- Check if you qualify for veteran or disability property tax exemptions.
- Downsize to a smaller home with lower property tax rates to reduce your overall tax burden.
- Confirm eligibility for additional local or state tax relief programs.
Delaware’s Property Tax Rates & Exemptions
- Delaware has one of the lowest property tax rates in the U.S.
- Some counties offer additional exemptions for disabled homeowners and veterans.
IRS Compliance & Required Tax Forms
- Form 1040 – Federal tax return.
- Delaware Property Tax Credit Application Form (varies by county).
Conclusion
The Delaware Senior School Property Tax Credit is a valuable benefit for homeowners 65 and older, reducing school property taxes by up to $500. By applying before the deadline and meeting residency requirements, eligible seniors can significantly lower their tax burden.
For expert tax planning and property tax assistance, schedule a meeting with our CPA Anshul Goyal by clicking at https://calendly.com/anshulcpa/ now.
Frequently Asked Questions (FAQs)
1. Who qualifies for the Delaware Senior School Property Tax Credit?
Delaware residents 65+ who have lived in the state for at least 10 years and own a primary residence.
2. How much is the senior property tax credit in Delaware?
The maximum credit is $500, applied to school property taxes.
3. When is the deadline to apply for the Delaware Elderly Tax Credit?
Applications must be submitted by April 30 to receive the credit for that tax year.
4. Can renters qualify for the senior property tax credit in Delaware?
No, only homeowners who pay school property taxes can apply.
5. Should I hire a CPA to help with my property taxes?
Yes, a CPA can help you maximize property tax savings, ensure eligibility, and reduce overall tax liability.
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA). He specializes in Delaware tax credits, property tax planning, and senior tax benefits.
Schedule a consultation today with Anshul Goyal, CPA, for personalized tax-saving strategies.