There's a homestead law that lets people who are 65, pay only a small amount on their property tax each year..

Question

and rumor has it that when your 70, you have 2 pay it all back.. does anyone know how the homestead law works ?

Answer 1

It depends on the state. However, I have been doing taxes a long time and have clients in many states. I have never heard of any of them having a clause for repayment.

It is just a rumor. Don't worry about it.

Hope this helps

EDIT:  Tonalc2 is completely wrong. The federal government doesn't have anything to do with property tax. That is governed by state law and usually collected by the county or Parrish (whatever). What he/she looked up is free land by homesteading.

Answer 2

Some states have property tax rebate laws that cut some of the tax for seniors, often limited to low income seniors.  I'd be very surprised if any of them made you pay it all back at age 70 though - sounds like another urban legend.

Laws differ by state.  The rules are probably on your state website - search for property tax rebate, or homestead.

Answer 3

It depends on your state and maybe your county.  In my county there is a homestead exemption for owner occupied, additional senior citizen exemption, senior citizen assessment freeze (based on income), and/or senior citizen tax deferral (6% interest, payable on death or when property sold).

See the website of your county treasurer or whoever collects property taxes in your area.

Answer 4

The federal government ended the homestead program in 1976 in all states but Alaska; there the Homestead Act remained in force until 1986.