Property Tax Deferral for Homeowners with Limited Income

This deferral program is for applicants with a disposable income of $57,000 or less. It applies to property taxes due and payable after April 30. The application is due by September 1 of the year of the deferral and the first installment of property taxes must have been paid at the time of the application.

Eligibility

An applicant must have owned the home for at least five years and currently reside in it. The total deferral cannot exceed 40 percent of the equity in the residence and the owner must have sufficient fire and casualty insurance.

How It Works

The state pays the second half installment of property taxes and places a lien on the property.

The deferred taxes, with interest, must be repaid. The interest rate is based on the federal prime rate plus 2 percent.

For more information, visit the Department of Revenue, or to obtain the publication, click here.

What’s the difference between a property tax deferral and a property tax exemption?

In a deferral program, the state pays the property taxes to the county and places a lien on the home. The taxes plus interest must be repaid to the state when the owner no longer lives there or dies.

No lien is placed on homes for individuals who are enrolled in the Property Tax Exemption Program for Senior Citizens and Disabled Persons. This program exempts a portion of the property taxes for eligible applicants and redistributes the tax burden to other taxpayers.