Illinois Property Tax Deferral Progam a Huge Plus for Senior Citizens

The State of Illinois offers a program for senior citizens that allows them to defer the payment of their real estate taxes on their primary residence. The Senior Citizen Real Property Deferral program is a tax-relief program that works like a loan on the property. This program allows qualified seniors to defer all or a portion of their real estate taxes on their home and is repaid when the property is sold, transferred or refinanced.

In order to qualify, an applicant must:

• Be 65 years or older by June 1 of the year that the taxes would be paid


• Have an annual household income of $50,000 or less


• Have owned and occupied the property (or other qualifying property) as their primary residence for the past 3 years


• Not have a lien on the property for past-due taxes or special assessments.


• Have adequate homeowners insurance coverage


• Be 55 years old within 6 months after the death of the qualifying taxpayer’s death.

A qualified senior can defer up to 100% of their real estate taxes as long as they maintain at least 20% of the equity in the property. To calculate the equity subtract any mortgages or other liens on the property, including previously deferred real estate taxes, from the value of the property. If the remaining equity is at least 20% of the value, then they are qualified for the tax deferral.

The tax deferral program works like a mortgage because there is a lien placed on the property and interest accrues on the loan at a 6% annual rate. So, the balance of this tax deferral will increase as time goes by. This is a good program for those seniors who are house-rich and cash-poor.

I have a mortgage on my property, do I still qualify?

If you have a mortgage on your property you will still qualify (subject to the minimum equity requirements) and you will not need prior approval from your mortgage lender. It is similar to taking out a second mortgage on the property. The only exception to this is in the case of a reverse mortgage – contact your mortgage lender prior to applying for this tax deferment.

When are the deferments repaid?

You may pay these deferments off at any time. However, within 1 year of the death of the qualifying senior (unless the surviving spouse turns 55 within 6 months of death) or within 6 months of the sale, transfer, or refinance of the subject property, the deferments must be repaid.

Applications are accepted January 1 through March 1 of the year the taxes are to be paid. Applications can be obtained from the County Treasurer office beginning January 1.

Click here for a brochure with more details on this program.

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