Property Tax Exemption for Families With Disabled Children
Raising a child with a disability comes with significant financial challenges. Some states recognize this by offering property tax exemptions or credits to families raising disabled children at home. These programs are less common than senior or veteran exemptions, but where they exist, they can provide meaningful financial relief.
TL;DR
- A small number of states offer property tax benefits specifically for families with disabled children
- Benefits typically require the child to be totally and permanently disabled
- The child must live in the home as a primary residence
- Benefits range from modest credits to significant exemptions
- Most families with disabled children can also qualify for general disability or homestead exemptions
States With Programs for Families of Disabled Children
| State | Program | Details |
|---|---|---|
| Texas | Disabled person exemption may apply | If the disabled child is on the deed, the $10,000 disabled person school tax exemption and tax ceiling may apply to the home |
| Florida | Totally and permanently disabled exemption | If the disabled person (adult child) owns or co-owns the home, full exemption may be available |
| Illinois | Persons with Disabilities Exemption | $2,000 off EAV. Available if the disabled person lives in and has an ownership interest in the home. |
| New York | Persons with Disabilities Exemption | Up to 50% off assessed value for disabled homeowners with income under $29,000+ |
| Virginia | Local disability programs | Some localities include disabled dependents in their elderly/disabled tax relief programs |
| Ohio | Homestead Exemption for disabled | $26,200 off market value if the disabled person owns or co-owns the home |
How These Programs Typically Work
Most property tax exemptions are tied to the property owner, not dependents. This means the disabled child usually needs to have an ownership interest in the home (be on the deed) to qualify for disability-based exemptions.
Options for families include:
- Adding the disabled child to the deed. This can qualify the home for disability exemptions in some states. Consult an attorney about implications for the child's government benefits (SSI, Medicaid) before doing this.
- Using a special needs trust. In some states, property held in a special needs trust for a disabled individual can qualify for exemptions.
- Claiming general homestead and low-income exemptions. Even without a disabled-child-specific program, families may qualify for homestead, circuit breaker, or income-based exemptions.
Important Considerations
- Government benefits impact. Adding a disabled child to a property deed could affect their eligibility for SSI, Medicaid, or other means-tested benefits. Always consult with an attorney who specializes in special needs planning before making changes to property ownership.
- Estate planning. Property ownership by or for a disabled family member should be part of a comprehensive special needs estate plan.
- Income-based programs. Many states offer property tax credits or circuit breaker programs based on household income. Families with significant medical expenses related to a child's disability may have lower adjusted incomes that qualify them for these programs.
What to Do Next
- Contact your county assessor to ask about disability-based property tax programs
- Ask specifically about programs for families with disabled dependents
- Check if adding your disabled child to the deed would qualify for exemptions (but consult an attorney first)
- Apply for all general exemptions you qualify for (homestead, income-based credits)
Related Guides
Check Your Property Tax Exemptions
You may be missing exemptions that could save your family hundreds or thousands per year. Our free assessment analyzer identifies all available exemptions for your property.
Check your exemptions now to see what savings are available.
Frequently Asked Questions
What should I know about property tax exemption for families with disabled children?
Raising a child with a disability comes with significant financial challenges. Some states recognize this by offering property tax exemptions or credits to families raising disabled children at home. These programs are less common than senior or veteran exemptions, but where they exist, they can provide meaningful financial relief.
How These Programs Typically Work?
Most property tax exemptions are tied to the property owner, not dependents. This means the disabled child usually needs to have an ownership interest in the home (be on the deed) to qualify for disability-based exemptions.
What should I know about check your property tax exemptions?
You may be missing exemptions that could save your family hundreds or thousands per year. Our free assessment analyzer identifies all available exemptions for your property.