Seniors in Delaware could be eligible for a tax credit to lower the burden of regular school property taxes. The property tax credit from Delaware is available to homeowners aged 65 and over. Eligible homeowners could get up to $500 in tax credits.
Property tax credit from Delaware: who will get it?
Delaware offers homeowners 65 years or above, a tax credit – officially called the Senior School Property Tax Relief – against their school property taxes. The credit amount is 50% of the recipient’s tax obligation or $500, whichever is less. The credit amount will be applied only against property taxes on the recipients’ primary residence.
To qualify for the property tax credit from Delaware, a homeowner must be 65 or older by June 30 of the year for which they apply. Also, the property for which a person is applying must be their principal residence.
Additionally, there is a ten-year residency requirement for new applicants. This means that those establishing a legal domicile in Delaware on or after Jan. 1, 2018, must have been legally domiciled in the state for at least 10 consecutive years to qualify for the credit.
Those establishing legal domicile in the state after Dec. 31, 2012, but before Jan. 1, 2018, will have to have been legally domiciled within the state for a minimum of 3 consecutive years to qualify for the credit. Those establishing legal domicile before Jan. 1, 2013, will be eligible for the credit in the ensuing tax year.
How to apply?
Seniors must fill out an application to be considered for the credit and submit the same to the county where they reside by April 30th. The application form for the property tax credit from Delaware is available online on the Department of Finance’s website.
Applicants need to provide a copy of their driver’s license or any other official state ID to complete the application. Also, applicants need to inform whether or not they are the sole owner of the property.
More than one person can claim a credit for the same property, provided they meet the requirements. However, only one full credit per property is allowed. This means that co-owners that share in the credit will be based on their ownership interest in the property.
The credit amount will be automatically deducted from the applicant’s property tax bill before the county mails it out.
Note that recipients don’t need to re-apply for the credit each year. Homeowners, however, are required to pay their full property tax bill by the end of each tax year to qualify for the property tax credit for the next year.
Visit the state Department of Finance website or contact Sussex County at 802-855-7871, New Castle County at 302-395-5520, or Kent County at 302-744-2341 to get more information on the Senior School Property Tax Relief program.