Social Security April 2025 payments: It is becoming financially unfeasible for millions of elderly in the United States to age in place. An increasing number of older homeowners are discovering that Social Security alone is insufficient as living expenses increase and property taxes rise in tandem with home values.
The National Institute on Retirement Security reports that although Social Security was intended to be an added bonus, it is now the only source of earnings for almost 40% of older Americans.
Even slight increases in property taxes can put these people in a financial bind that forces them to make tough choices like selling the family home, cutting back on necessities, or facing eviction in a harsh housing market.
What are property taxes?
One of the most important sources of funding for municipal governments is property taxes, which fund roads, buses, schools, parks, recreation centers, libraries, police, firefighters, and many more municipal public works projects.
Landowners and other real estate owners in a community are responsible for paying property taxes, and the tax rate varies based on where you reside. Payments might be as little as a few hundred dollars a year or as much as a second mortgage. According to data gathered by real estate research company ATTOM, the average yearly property tax bill in the US in 2023, was $4,062, a 3 percent surge from 2021 and 4.1% from 2022.
Colton Pace, CEO and co-founder of Ownwell, a platform that assists homeowners in lowering property taxes and other housing-related expenses, argues that property taxes are “sort of a beautiful tax.” Speaking to Realtor.com, Pace said: “The value of your home going up is great, but it also means your property tax bill is probably going to go up.”
Annual tax bills in certain markets are comparable to the average Social Security benefit.
While seniors can apply for an exemption and appeal for assessment, there are 20 cities where Social Security can’t cover annual property taxes.
Also Read: Social Security payment on April 9: Who is eligible and how much will you get?
20 US cities where Social Security can’t cover property taxes cost
In 20 US cities, an individual’s average yearly property tax payment, excluding utilities, homeowners insurance, a mortgage, and other necessary housing expenses, exceeds 25% of their typical Social Security payout.
According to the Social Security Administration, a retired worker’s usual monthly payment is $1,980.86 (or $23,770.32 yearly). Social Security benefits rely on their retirement age and lifetime earnings. While the average monthly salary for retirees and their spouse was increased to $2,912.92, or $34,955.04 annually, the amount is still insufficient to compensate for growing tax burdens in high-cost regions.
Here are 20 cities which have the hardest markets for seniors depending entirely on Social Security to keep their homeownership:
Jackson, WY
Median annual property tax bill: $10,643
Percentage of annual single SSA: 44.77%
Percentage of annual married SSA: 30.45%
New York, NY
Median annual property tax bill: $10,457
Percentage of annual single SSA: 43.99%
Percentage of annual married SSA: 29.92%
San Jose, CA
Median annual property tax bill: $10,160
Percentage of annual single SSA: 42.74%
Percentage of annual married SSA: 29.07%
Stamford, CT
Median annual property tax bill: $9,849
Percentage of annual single SSA: 41.43%
Percentage of annual married SSA: 28.18%
Poughkeepsie, NY
Median annual property tax bill: $9,577
Percentage of annual single SSA: 40.29%
Percentage of annual married SSA: 27.4%
Austin, TX
Median annual property tax bill: $8,705
Percentage of annual single SSA: 36.62%
Percentage of annual married SSA: 24.9%
San Francisco, CA
Median annual property tax bill: $8,527
Percentage of annual single SSA: 35.87%
Percentage of annual married SSA: 24.39%
Trenton, NJ
Median annual property tax bill: $8,126
Percentage of annual single SSA: 34.19%
Percentage of annual married SSA: 23.25%
Boston, MA
Median annual property tax bill: $7,681
Percentage of annual single SSA: 32.31%
Percentage of annual married SSA: 21.97%
Nantucket, MA
Median annual property tax bill: $7,665
Percentage of annual single SSA: 32.25%
Percentage of annual married SSA: 21.93%
Concord, NH
Median annual property tax bill: $7,636
Percentage of annual single SSA: 32.12%
Percentage of annual married SSA: 21.85%
Kingston, NY
Median annual property tax bill: $7,586
Percentage of annual single SSA: 31.91%
Percentage of annual married SSA: 21.7%
Manchester, NH
Median annual property tax bill: $7,538
Percentage of annual single SSA: 31.71%
Percentage of annual married SSA: 21.56%
Dallas, TX
Median annual property tax bill: $7,193
Percentage of annual single SSA: 30.26%
Percentage of annual married SSA: 20.58%
Ithaca, NY
Median annual property tax bill: $7,099
Percentage of annual single SSA: 29.86%
Percentage of annual married SSA: 20.31%
New Haven, CT
Median annual property tax bill: $7,027
Percentage of annual single SSI: 29.56%
Percentage of annual married SSI: 20.10%
Santa Cruz, CA
Median annual property tax bill: $6,752
Percentage of annual single SSA: 28.41%
Percentage of annual married SSA: 19.32%
Houston, TX
Median annual property tax bill: $6,619
Percentage of annual single SSA: 27.85%
Percentage of annual married SSA: 18.94%
Seattle, WA
Median annual property tax bill: $6,605
Percentage of annual single SSA: 27.79%
Percentage of annual married SSA: 18.9%
Chicago, IL
Median annual property tax bill: $6,600
Percentage of annual single SSA: 27.77%
Percentage of annual married SSA: 18.88%