Senior Citizen Property Tax Refund Credit (Circuit Breaker)

Arizona

2021

Benefit Varies with Income

Circuit Breaker

The benefit is a refundable credit to income tax bill for property taxes accrued or rent, or both, paid in that taxable year. Information concerning the benefit for tax year 2020 which is paid in 2021 is determined by 21 income brackets with maximum relief ranging from $502 if income is under $1,751 (living alone) or $2,501 (living with spouse/dependents), to $56 if income is $3,651-$3,750 (living alone) or $5,351-$5,500 (living with spouse/ dependents). The maximum benefit cannot exceed the property tax bill or the designated rent. The landlord designates the percentage of rent attributable to property taxes.

Credit to the income tax bill

Residential

Only homesteads are eligible for this benefit. A homestead is the principal dwelling owned or rented by the claimant. A homestead may also include a mobile home and the land upon which it is located.

Age

Homeowner

Income Ceiling

Principal Residence

Renter

Other Criteria

To be eligible, the applicant must be 65 or older during the taxable year or must be a recipient of Supplement Security Income (SSI) benefits under the Social Security Act. The applicant also must have paid either property taxes or rent during the taxable year and must have resided in Arizona the whole year. The maximum 2020 household income for 2021 return for either homeowner or renter is $3,750 for individuals and $5,500 for married couples or those that live with others regardless of marital status. Income is based on salary and wages and retirement income as well as income from business sources. Income does not include social security benefits or other government benefits, such as veteran's disability payments.

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 provides the benefit directly to the taxpayer through the income tax.

AZ103_RR21