If you’re residing on a hard and fast earnings or struggling to carry on to your own home, you may be relieved to find out about property tax deferral packages.
Generally provided by means of state or native governments, these packages allow eligible householders to postpone paying half or all of their property taxes — for anyplace from one tax 12 months to so long as they personal the house, relying on this system.
Following are examples of states by which property tax deferral packages can be found to older residents in addition to sure different residents, equivalent to blind and disabled individuals and veterans.
If your state will not be talked about however you wish to know if it provides property tax deferral, begin by inquiring along with your native authorities company that collects property taxes.
Just remember that deferring property taxes is mostly not free. In truth, it’s not not like taking out a mortgage in that it successfully postpones your monetary obligation to a later date, quite than waiving it. In the meantime, you’ll usually accrue curiosity.
In this regard, retirees who wish to liberate money ought to have a look at property tax deferral packages equally to how they contemplate a reverse mortgage. While the latter is right for sure retirees, it’s positively not for others, as Money Talks News founder Stacy Johnson particulars in “Should I Get a Reverse Mortgage?”
California’s Property Tax Postponement Program lets eligible seniors, in addition to blind and disabled residents, defer current-year property taxes.
Note that for the 2020-2021 tax 12 months, nonetheless, the applying submitting interval is over apart from residents of sure counties affected by wildfires. Those residents have till June 1 to use.
Contact the California State Controller’s Office, which administers this system, or monitor its web site for the applying submitting dates for the 2021-2022 tax 12 months. The office notes that the funding for this system “is limited and distributed on a first come, first served basis.”
Age requirement: For the aim of eligibility in its program, California defines “seniors” as these age 62 and older. Seniors should additionally meet different eligibility necessities, nonetheless, equivalent to having an annual family earnings of $45,500 or much less.
For extra data: Visit the state controller’s “Property Tax Postponement” webpage.
Colorado has a property tax deferral program for eligible seniors in addition to lively army personnel. The state considers taxes deferred below this program very like a mortgage, explaining:
“The loan is logged as a lien against the participant’s property that does not have to be remitted until the participant no longer qualifies to defer their property taxes.”
Note that householders who qualify for this system should file an software with their county treasurer between Jan. 1 and April 1 of yearly.
Age requirement: To be eligible for Colorado’s program primarily based on age, you should be 65 or older. Applicants should additionally meet different eligibility necessities.
For extra data: Visit the Colorado Department of the Treasury’s “Senior and Veteran Property-Tax Programs” webpage.
Idaho’s Property Tax Deferral Program is currently available to seniors and varied different residents, together with widows and widowers, amongst others. It lets them defer taxes till as late as once they go away their dwelling, although the taxes and curiosity change into a lien on their property till then.
Note that householders who want to apply to this system for 2021 should achieve this between Jan. 1 and April 15.
Age requirement: To be eligible for Idaho’s program primarily based on age, you should be at the least 65 years previous. Other eligibility necessities — together with having a 2020 combined income of $46,488 or much less — additionally apply.
For extra data: Visit the Idaho State Tax Commission’s “Property Tax Deferral” webpage.
The Senior Citizens Real Estate Tax Deferral Program in Illinois lets qualifying householders defer all or a part of their property taxes and particular assessments (as much as a most of $5,000) till as late as once they go away their dwelling. As the state explains it:
“The deferral is similar to a loan against the property’s market value. A lien is filed on the property in order to ensure repayment of the deferral. The state pays the property taxes and then recovers the money, plus 6 percent annual interest, when the property is sold or transferred.”
Age requirement: For the aim of this program, Illinois defines “senior citizens” as individuals age 65 or older.
For extra data: Contact your county treasurer’s workplace. To defer property taxes or particular assessments, you should full particular types that you should request from that workplace, in response to the Illinois Department of Revenue’s “Property Tax Relief – Homestead Exemptions” webpage (scroll down for the Senior Citizens Real Estate Tax Deferral Program).
Massachusetts state regulation permits cities and cities to grant property tax deferrals to qualifying seniors.
Note that purposes are due on April 1, or three months after the precise tax payments are mailed — whichever is later.
Age requirement: You should be 65 or older and meet different eligibility necessities, a few of that are detailed within the Massachusetts Department of Revenue’s “Taxpayer’s Guide to Local Property Tax Deferrals.”
For extra data: Contact your native assessors.
Michigan offers programs that allow eligible seniors and sure different residents to defer property taxes.
Note that deferment types are due, to a resident’s metropolis or township treasurer, earlier than Sept. 15 or earlier than the date a resident’s summer season taxes are due — whichever is later.
Age requirement: To be eligible to defer summer property taxes primarily based on age, you should be at the least 62. Other eligibility necessities additionally apply.
For extra data: Visit the Michigan Department of Treasury’s “Deferment of Property Taxes” webpage.
Minnesota’s property tax deferral program for seniors permits eligible residents to defer a portion of their taxes.
Note that the applying deadline to defer property taxes for a given 12 months is Nov. 1 of the prior 12 months. So, apply by Nov. 1, 2021, to defer your taxes in 2022.
Age requirement: For the aim of this program, Minnesota defines “senior citizen” as somebody who’s 65 or older. A married couple can qualify for this system if one partner is 65 and the opposite is at the least 62. Other eligibility necessities, together with an earnings cap, additionally apply.
For extra data: Visit the Minnesota Department of Revenue’s “Property Tax Deferral for Senior Citizens” webpage.
Oregon provides property tax deferral to eligible seniors in addition to disabled householders.
Note that you should file an software along with your county assessor’s workplace by April 15.
Age requirement: To qualify for Oregon’s program primarily based on age, you should be at the least 62. Other eligibility necessities additionally apply.
For extra data: See the Oregon Department of Revenue’s “Oregon Property Tax Deferral for Disabled and Senior Citizens” handout.
Residents of Davidson County — dwelling to Tennessee’s capital of Nashville — could also be eligible for the county’s tax deferral program for seniors in addition to disabled residents. Tennessee additionally provides a property tax relief program and property tax freeze program to eligible residents, together with seniors.
Age requirement: To be eligible for Davidson County’s program or both state program primarily based on age, you should be at the least 65. Other necessities additionally apply to every program.
For extra data: Click on the hyperlinks above.
Utah regulation permits for property tax abatement and deferrals for seniors, amongst others.
Age requirement: To be eligible for abatement or deferral primarily based on age, you should be at the least 65. Other eligibility necessities — together with a 2020 earnings of lower than $34,666 — additionally apply.
For extra data: Call the quantity to your county that’s listed on the finish of the Utah State Tax Commission’s Publication 36.
Washington state provides a property tax deferral program for senior residents and disabled individuals.
Age requirement: To be eligible primarily based on age, you should be at the least age 61 by Dec. 31 of the 12 months earlier than the taxes are due. Other eligibility necessities additionally apply.
For extra data: See the Washington Department of Revenue’s “Property Tax Exemption for Senior Citizens and People with Disabilities” handout.
Wyoming provides a property tax deferral program for older householders in addition to disabled householders. It is run on the county degree.
Note that the applying deadline is Nov. 10 of the 12 months taxes are levied.
Age requirement: To qualify primarily based on age, you should be at the least 62. Other eligibility necessities additionally apply.
For extra data: Some eligibility particulars can be found on the Wyoming Property Tax Division’s website. For additional particulars pertinent to residents of your county, contact your county assessor’s workplace.
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