Property Tax Relief for Elderly and Disabled (Circuit Breaker)

Rhode Island

2021

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Circuit Breaker

This program provides a refundable tax credit to eligible homeowners and renters. The credit is based on property taxes in excess of income. The maximum property tax relief credit is $400. There are 5 income brackets for all filers. For those with income less than $6,000, the credit is the taxes in excess of 3% of income. For those in the top bracket, $15,001 to $30,000, the credit is the taxes in excess of 6% of income. For renters, property taxes are assumed to be 20% of gross rent, excluding utilities. Applications must be filed by 15 April in order to qualify for a credit in that year.

Credit to the income tax bill

Residential

Only residential property is eligible for this program.

Age

Disability

Homeowner

Income Ceiling

Renter

Applicant must be 65 years or older and/or disabled. Eligible renters must have rented the home for the entire year. To be eligible for the disability requirement an individual must be receiving a social security disability benefit or Supplemental Security Income (SSI) payments. Total household income may not exceed $30,000.

Local government is unable to exercise an option

No local option regarding program features

State reimburses all of the local government tax loss

The state makes the payment to the taxpayer.

RI101_RR21