How does a Property Tax Circuit Breaker work?
Under a property tax circuit breaker the state sets a maximum percentage of income that a household is expected to pay in property taxes. States deliver the benefit of a property tax circuit breaker to taxpayers through either a direct rebate check or through an income tax credit. States also bear the costs of property tax circuit breaker programs. A property tax circuit breaker does not impact the property tax revenue collected by school districts. How many states have adopted a Property Tax Circuit Breaker? According to the Center on Budget and Policy Priorities, there are currently 18 states that have adopted a property tax circuit breaker program. In eight states, property tax circuit breakers are available only to senior citizens and people with disabilities and in ten states property tax circuit breakers are available to all households regardless of age or disability status. All 18 states set a maximum income limit above which households do not qualify for the circuit breaker pro
