State Tax Credits and Property Tax Breaks for Home Accessibility

Updated October 18, 2026 · By the Aging in Place Grants research desk · How we research

A handful of states give income tax credits or keep property taxes from rising when you make a home more accessible. Here is how the main ones work.

A patchwork of state help

The federal government lets you count certain home changes as medical expenses. Some states add their own breaks on top. These come in two forms:

• Income tax credits that reduce the state income tax you owe
• Property tax protections that keep accessibility work from raising your assessment

Most states do not have a program aimed at home accessibility. But where they exist, they can be worth hundreds or thousands of dollars. Below are verified examples, followed by tips for checking your own state.

Virginia: Livable Home Tax Credit

Virginia's Livable Home Tax Credit is one of the most generous in the country. It is run by the Department of Housing and Community Development ¹.

• New accessible home: a credit of up to $6,500 for buying or building one ¹
• Retrofit: a credit of 50 percent of the cost of making an existing home more accessible, up to $6,500 ¹
• Who can apply: Virginia homeowners and licensed contractors ¹
• Annual cap: $2 million per fiscal year. If requests go over that, credits are prorated ¹
• Carryforward: credit above your tax bill can be carried forward up to seven years ¹

The program aims to improve accessibility and "visitability." DHCD publishes program guidelines with eligible features and the yearly deadline. Check them before work starts so you keep the right records.

How the retrofit math works

Here is an illustration with made-up numbers. If a Virginia homeowner spends $8,000 to retrofit a home for accessibility, half of that is $4,000. That is under the $6,500 cap, so the credit could be up to $4,000. If the project cost $16,000, half would be $8,000, so the credit would be capped at $6,500 ¹. If the program's yearly total is oversubscribed, the actual credit could be prorated lower ¹.

Georgia: Disabled Person Home Purchase or Retrofit Credit

Georgia offers a smaller credit, claimed as credit code 201 ².

• New home: the lesser of $500 per home or your income tax owed, if the home has all the listed features ²
• Retrofit: the lesser of the cost or $125 for adding one or more listed features to an existing home ²
• Features: a no-step entrance, interior doors with at least a 32-inch opening, reinforced bathroom walls for grab bars, and light switches and outlets in reachable places ²
• Who qualifies: the taxpayer, or spouse on a joint return, must be permanently disabled and have a permanent parking permit from the state ²
• Carryforward: unused credit carries forward three years ²

California: property tax exclusion for disabled access

In California, new construction normally raises a home's assessed value. A state exclusion protects certain accessibility work from this.

For homes eligible for the homeowners' exemption, the owner or a spouse living in the home must be severely and permanently disabled when the work is finished ³. The work must make the home more accessible and directly meet the disability needs ³. You file Form BOE-63, Disabled Persons Claim for Exclusion of New Construction, with your county assessor ³. Once you or your spouse receive this relief, neither of you can use it again ³.

Illinois: seven-year assessment freeze

Illinois law says work that makes a home more accessible will not raise its assessed value for seven years after it is finished ⁴. Qualifying improvements are tied to the state's Home Services Program list, which includes items such as ramps, grab bars and wider doorways ⁴. Ask your county assessor how to make sure the work is recognized.

How to check your state

1. Search the revenue department. Try "accessibility credit," "disability home modification" and "aging in place credit."
2. Search the housing agency. Some credits, like Virginia's, are run by housing agencies, not tax offices.
3. Call the county assessor. Ask whether accessibility improvements are excluded from reassessment.
4. Ask about senior and disability property tax relief. Many states have homestead exemptions, freezes or deferrals for older or disabled homeowners that can free up money for repairs.
5. Ask a local tax preparer. They know which credits people in your state actually use.

Do not forget the federal rules

State credits and the federal medical expense deduction are separate. Under IRS Publication 502, ramps, grab bars, wider doors and similar changes made for medical reasons can count as medical expenses if you itemize ⁵. A tax professional can tell you how a state credit and the federal deduction work together in your case.

Record tips

• Save invoices that list each accessibility feature separately
• Take before-and-after photos
• Keep a copy of any state application and approval letter
• Note the date the work was finished, since many deadlines run from that date

Common questions

Which states have a tax credit for home accessibility?

Examples include Virginia's Livable Home Tax Credit and Georgia's Disabled Person Home Purchase or Retrofit Credit. Other states may offer property tax relief instead, such as California's exclusion for disabled access improvements and Illinois's seven-year assessment freeze.

How much is the Virginia Livable Home Tax Credit?

Up to $6,500 for buying or building a new accessible home, or 50% of retrofit costs up to $6,500. The program has a $2 million yearly cap, and credits are prorated if requests exceed it.

Will adding a ramp raise my property taxes?

It might in some states, but some protect you. California excludes qualifying disabled access improvements from reassessment, and Illinois keeps qualifying accessibility improvements from raising assessed value for seven years.

Can I use a state credit and the federal medical deduction?

Possibly, but rules differ. A tax professional can tell you how your state credit interacts with federal itemized deductions.

My state is not listed. What should I do?

Search your state revenue and housing agency websites, and ask your Area Agency on Aging or a local tax preparer. Also look at property tax relief programs for older or disabled homeowners.

Sources

1. Livable Home Tax Credit (LHTC) — Virginia Department of Housing and Community Development. Checked October 18, 2026.
2. Disabled Person Home Purchase or Retrofit Credit — Georgia Department of Revenue. Checked October 18, 2026.
3. Exclusions from Reappraisal Frequently Asked Questions (Proposition 110 disabled access) — California State Board of Equalization. Checked October 18, 2026.
4. Public Act 099-0375 (35 ILCS 200/10-23, accessibility improvements) — Illinois General Assembly. Checked October 18, 2026.
5. Publication 502 (2025), Medical and Dental Expenses — Internal Revenue Service. Checked October 18, 2026.