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Exemption for persons with disabilities and limited incomes

Local governments and school districts may lower the property tax of eligible disabled homeowners by providing a partial exemption for their legal residence.

This exemption provides a reduction of up to 50% in the assessed value of the residence of the eligible disabled person(s). Those municipalities that opt to offer the exemption also set an income limit. The income limit may be as low as $3,000 and as high as $50,000.

Localities have the further option of giving sliding scale exemptions of less than 50 percent to persons with disabilities whose incomes are more than $50,000. Under this option, eligible persons may receive a 5% exemption if their income is below $58,400.

Check with your local assessor for the income limits in your community.

Note: If your property receives the senior citizens exemption, it cannot also receive this exemption. If you are eligible for both exemptions, you can choose the more beneficial option.

Eligibility Requirements

To be eligible, you must own the property, have certain documented evidence of a disability, and meet other income and residency requirements.

Disability

To be eligible, you must have a physical or mental impairment—not due to current use of alcohol or illegal drugs—that substantially limits your ability to engage in one or more major life activities, such as one or more of the following:

  • caring for one’s self
  • performing manual tasks
  • walking
  • seeing
  • hearing
  • speaking
  • breathing
  • learning
  • working

In addition, you must provide proof of your disability by submitting one of the of following:

  • an award letter from the Social Security Administration certifying your eligibility to receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI)
  • an award letter from the Railroad Retirement Board certifying your eligibility to receive railroad retirement disability benefits
  • a certificate from the State Commission for the Blind stating that you are legally blind
  • an award letter from the United States Postal Service stating you are certified to receive a United States Postal Service disability pension
  • an award letter from the United States Department of Veterans Affairs stating that you are entitled to a veterans disability pension
  • an award letter from the Workers’ Compensation Board based on either permanent total disability or permanent partial disability. Note that for exemptions based on permanent partial disabilities, local governments and school districts may adjust the exemption percentage to a level that is between 50% and 100%, inclusive, of the exemption percentage that would otherwise apply (e.g., instead of granting a 50% exemption, they could grant something less, but no less than a 25% exemption).

Ownership

Generally, all owners of the property must have an eligible disability as described above, unless the property is owned by husband and wife or by siblings. In those cases, only one person needs to have a disability.

If the property is held under a life estate, the life tenant is entitled to possession and use of the property for the duration of his or her life and is deemed the owner for purposes of taxation. The exemption also may be allowed if the property is in trust and all the trustees or all of the beneficiaries are eligible.

Municipalities are authorized to grant the exemption to eligible persons who own shares in residential cooperatives. If granted, you would receive adjustments to your monthly maintenance fees to reflect the benefit of that exemption.

Income

You cannot receive the exemption if your income, or the combined income of all the owners, exceeds the maximum income limit set by the locality.

If you are married, the income of your spouse must be included in the total unless your spouse is absent from the residence due to a legal separation or abandonment. The income of a non-resident former spouse, who retains an ownership interest after the divorce, is not included. If the sliding-scale option is in effect, you must meet that income limitation; contact your assessor to determine what the locally-applicable income limits are.

For the purposes of this exemption, income is defined as your federal adjusted gross income (FAGI) as reported on your income tax return(s) for the applicable income tax year (defined below) and subject to the following revisions:

  • Social Security benefits not included in your FAGI are considered income, except where a locality has opted to exclude them from income.
  • Distributions from an individual retirement account or individual retirement annuity included in your FAGI are not considered income, except where a locality has opted to include them in income.
  • Medical and prescription drug expenses of an owner that were actually paid for and not reimbursed or paid by insurance may be deducted from income where a locality has opted to allow them to be deducted.
  • If an owner is an inpatient in a residential health care facility, the amount paid for care at the facility by that owner (or by that owner’s spouse or co-owner) may be deducted from income.
  • Any tax-exempt interest or dividends that were not included in your FAGI is considered income.
  • The net amount of loss claimed on federal Schedule C,D,E,F, or any other separate category of loss cannot exceed $3,000, and the total amount of all losses claimed cannot exceed $15,000.

Applicable income tax year

In localities where the taxable status date is before April 15, the applicable income tax year is two years prior to the current calendar year. In localities where the taxable status date is on or after April 15, the applicable income tax year is the most recent calendar year. However, if you file fiscal year income tax returns, the applicable income tax year is the fiscal year shown on your most recent return.

The following taxing jurisdictions have taxable status dates of April 15 or later:

  • City of Dunkirk in Chautauqua County
  • City of Elmira in Chemung County
  • City of Geneva in Ontario County
  • City of Glen Cove in Nassau County
  • City of Oneida in Madison County
  • Cities of Rome and Utica in Oneida County
  • Cities of Mount Vernon, New Rochelle, Peekskill, and Rye in Westchester County
  • All towns in Westchester County
  • Villages of Harrison and Scarsdale in Westchester County

Proof of income

If any owner, or the spouse of any owner, filed a federal income tax return for the applicable income tax calendar year, a copy of the return must be submitted with the application.

Applicants who were not required to file a federal income tax return for the applicable income tax year must submit Form RP-459-c-Wkst, Income Worksheet for Exemption for Persons With Disabilities and Limited Incomes with their application, including any documentation as instructed by Form RP-459-c-Wkst.

Your assessor may request additional proof of income or deductions.

Residency

The property must be the legal residence of the disabled person(s) and be occupied by them. The only exception is if the owner is absent while receiving health services as an inpatient of a residential health care facility. A residential health care facility is defined as a nursing home or other facility that provides lodging, board, and physical care including, but not limited to the recording of health information, dietary supervision, and supervised hygienic services.

The property must be used exclusively for residential purposes. If a portion of the property is used for other purposes, the exemption will apply only to the portion used exclusively for residential purposes.

School-age children

If any child, including the child of tenants or lease holders, lives on the property and attends any public school, in most cases, no exemption from school taxes may be granted. However, a school district may elect to provide an exemption if satisfactory proof is provided that the child was not brought into the residence to attend a school within the district.

Applying for the exemption

For properties outside of New York City, file the applicable form with your assessor:

  • for first time applicants: Form RP-459-c, Application for Exemption for Persons with Disabilities and Limited Incomes, or
  • for renewal applicants: To continue receiving the exemption, Form RP-459-c-Rnw, Renewal Application for Exemption for Persons with Disabilities and Limited Incomes must be filed each year thereafter. Proof of the disability must be provided each year unless proof has previously been submitted showing that the disability is permanent.
  • for applicants who were not required to file a federal income tax return: Form RP-459-c-Wkst, Income Worksheet for Exemption for Persons With Disabilities and Limited Incomes

For assistance completing your application, see RP-459-c-I, Instructions for Forms RP-459-c and RP-459-c-Rnw.

For properties within New York City, visit New York City Department of Finance: Disabled Homeowners’ Exemption (DHE)

Application deadline

The application generally must be filed in the local assessor’s office on or before the appropriate taxable status date. This date in most towns is March 1. In Nassau County, it is January 2. Westchester County towns have either a May 1 or June 1 taxable status date; contact the assessor. In cities, such date is determined from charter provisions. In New York City, applications for this exemption must be filed on or before March 15. The date in most assessing villages is January 1, but the village clerk should be consulted for variations.

Changes to the exemption for persons with disabilities and limited incomes for 2024 

The law governing the exemption for persons with disabilities and limited incomes was amended in 2023. For information regarding these changes, see Changes to the senior citizens exemption and the exemption for persons with disabilities and limited incomes in the 2023-2024 Enacted State Budget. 

Questions?

Contact your assessor’s office.

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