Recently, in front of the Annandale Korean Market, a church elder brought up the topic of property tax bills. They expressed frustration that, after retiring and living on a pension and Social Security, rising home values are causing their taxes to keep increasing.

So I asked them if they had applied for the Fairfax County senior property tax exemption. The response was, "Isn't that only for low-income people?"

I found that many people think this way. So, I decided to look up the official information from the County's Department of Tax Administration and summarize it.

First, let's talk about eligibility. Homeowners who are 65 years or older or who have a permanent and total disability can apply. If the property is jointly owned by a couple, only one person needs to meet the criteria.

If you turn 65 or receive a disability designation in the year you apply, you may still qualify for some exemption based on the time period. This means you shouldn't overlook your birthday if it's at the end of the year.

The key factor is the income limit. Your household's total income from the previous year must not exceed $90,000.

However, not everyone earning below $90,000 gets the same exemption. The exemption rate is determined by income brackets.

If your combined income is $60,000 or less, your property tax is fully exempt. For incomes between $60,001 and $70,000, the exemption is 75%.

For incomes between $70,001 and $80,000, it's 50%, and for incomes between $80,001 and $90,000, it's 25%. The $90,000 mark is not a full exemption threshold but rather the upper limit of the last bracket.

In neighborhoods with many retirees from the federal government or the Department of Defense, there may be cases where pension amounts fall awkwardly into these brackets. If you're on the edge of a bracket, it's important to check your numbers carefully, as a difference of just $1 can change your exemption rate.

I was honestly a bit surprised when I first saw this table. I thought that a dual-income retired couple receiving two pensions could easily fall into the 25% bracket.

The income referred to here is not just the number on your tax return. The county application considers the total income of the household, including pensions, Social Security, interest, and dividends, so you need to ensure your documents are accurate.

There are also deductions in the income calculation. If a relative who is not the homeowner lives with you, the first $6,500 of their income is excluded. Applicants with disabilities can deduct the first $7,500 of their own income.

The second hurdle is net worth. The combined net worth of the homeowner and their spouse from the previous year must not exceed $400,000.

Many people misunderstand this, but the value of the home you live in is excluded from the net worth calculation. The home and up to one acre of land are exempt.

So, if you have a house in Burke or Centreville and your bank balance and retirement accounts are below $400,000, it's worth checking the eligibility. There's no reason to give up just because your home value is high.

However, there is a limit to the exemption. The exemption applies only up to 125% of the average assessed value of residential properties in the county, and any amount above that is taxed at the normal rate.

This limit was originally lower. At the end of 2021, the county supervisor board raised the income limit from $72,000 to $90,000 and the net worth limit from $340,000 to $400,000. It was said to be the first expansion in 15 years.

Those whose income slightly exceeds $90,000 may be eligible for a tax deferral. The combined income must be $100,000 or less, and net worth must be $500,000 or less.

A deferral is not an exemption; it's a system where you pay later. There are no late fees, but interest accrues annually at a rate of 1% above the prime rate, capped at 8%.

The deferred taxes and interest must be settled within one year of selling the house or the last qualifying owner passing away. If you plan to pass the house to your children, it's a good idea to discuss this with your family in advance.

Deadlines are also important. The application for 2026 was due by May 1. Now that it's November, this year's deadline has passed, so you should be ready to submit your application as soon as it comes out next year.

There are exceptions that allow for extensions until December 31, but you must request this in writing. I wouldn't recommend relying on this and delaying.

Even those without homes have options. There are rent tax exemptions for seniors living in rentals and a vehicle tax exemption for one car.

The criteria for these are much stricter. You must have an income of $22,000 or less and a net worth of $75,000 or less.

You can obtain the application from the county website, and the tax department's phone number is 703-222-8234. They are available on weekdays from 8 AM to 4:30 PM.

If your parents' generation finds English paperwork daunting, it's best for children to sit down and help them fill it out. Gathering last year's tax return and bank and investment account balance documents in advance will make the process much smoother.

Of course, calculations may vary depending on the type of pension, retirement account withdrawals, and joint ownership. Since it varies by individual circumstances, be sure to confirm with a tax professional or county representative.

When I showed this table to the elder that day, they smiled and said, "I'm in the 25% bracket." There's nothing more regrettable than missing out on benefits simply because you didn't know.

If I were in their position, even if my income were close to $90,000, I would submit the paperwork anyway. Be sure to share this important number with other seniors around you.