Across the United States, more and more senior homeowners are facing a difficult financial challenge — keeping up with rising property taxes. Many of these seniors have worked hard to pay off their homes, believing they’d secured financial peace of mind for retirement. But with home values increasing dramatically over the past few years, property tax bills have soared, leaving some unable to keep up — and at risk of foreclosure.
If you’re a senior concerned about mounting property taxes or the fear that taxes will rise in the future, a reverse mortgage for property tax relief may be the lifeline you’ve been looking for.
Why Seniors Are Struggling with Property Taxes
In recent years, housing prices have surged across the country. While that might sound like good news for homeowners, it’s resulted in significantly higher property tax bills. For retirees on fixed incomes, these rising costs can be devastating.
Take Maine, for example. The median home price has nearly doubled since 2020 — from $249,000 to $462,500 — and the average annual property tax bill is now more than $4,200. That’s a crushing amount for many seniors who no longer have a monthly mortgage but now face an unexpected, growing tax burden.
In California, many seniors feel trapped in their homes. Thanks to Proposition 13, property taxes are based on the original purchase price and can only rise slightly each year. However, if a senior sells and buys a new home, the new tax rate is based on current market value — potentially doubling or tripling their annual bill. Even with Proposition 19, which allows seniors to transfer their tax base under certain conditions, the process can be complex and doesn’t work in all cases.
The result? Many seniors stay put in homes that no longer serve their needs — just to avoid a higher tax bill.
How a Reverse Mortgage Can Help with Property Taxes
A reverse mortgage for property tax relief allows homeowners aged 55 or older to tap into the equity in their home without selling it. These loans can be used to pay off existing property taxes, cover future tax payments, or even fund other retirement needs — all without monthly mortgage payments.
This option provides several key benefits:
Eliminates the need to sell or move
Provides access to tax-free cash
Can prevent foreclosure due to unpaid property taxes
Allows aging in place with financial security
It’s important to note: Homeowners must still pay property taxes and homeowner’s insurance to keep their reverse mortgage in good standing. But having access to a large line of credit or a lump sum of cash can be the difference between staying in your home or losing it.
Real-Life Property Tax Distress Stories
A recent article in the New York Post highlighted how a growing number of older adults in the Northeast are falling behind on property taxes — even those who have no mortgage at all. Many are shocked to discover their homes are at risk of being auctioned due to tax liens.
Nationally, the problem is so concerning that organizations like the Consumer Financial Protection Bureau (CFPB) and National Consumer Law Center (NCLC) have released resources specifically to help reverse mortgage borrowers and older homeowners avoid tax-related foreclosures.
State & Federal Help Is Available
In addition to a reverse mortgage for property tax relief, there are other programs seniors may qualify for:
Property tax deferral programs (available in many states)
Property tax exemptions for seniors, veterans, or the disabled
California’s Property Tax Postponement Program
The Homeowner Assistance Fund (HAF), which helps homeowners behind on taxes
Each program has its own rules, but a reverse mortgage can often serve as a complement — or a backup plan — if other aid isn’t enough or doesn’t apply.
Next Steps: Is a Reverse Mortgage for Property Tax Relief Right for You?
If you’re a senior homeowner struggling with property taxes — or worried about future increases — now is the time to explore your options. Start by:
Talking with a Certified Reverse Mortgage Professional (CRMP) who understands the nuances of your state’s tax laws.
Exploring local tax relief programs through your county assessor’s office.
Asking about the line of credit option on reverse mortgages — it grows over time and can be a powerful safety net.
Considering how a reverse mortgage for property tax relief could protect your home and peace of mind.