Illinois Department of Revenue Reminds Taxpayers about Availability of Senior Citizens Tax Deferral Program

 

[February 20, 2025]  Chicago -The Illinois Department of Revenue (IDOR) today reminded senior citizens about the availability of the Senior Citizens Real Estate Tax Deferral Program. The program, which works like a loan, allows qualified seniors to defer all or part of their property taxes and special assessment payments on their principal residences. The deadline to apply for the program this year is March 1, 2025.

The maximum amount that can be deferred, including interest and lien fees, is 80 percent of the taxpayer’s equity interest in the property. The maximum deferral each year is limited to $7,500. Deferred amounts are borrowed from the state, who pays the tax bill to the county collector's office.

Interest on the amount paid by the state accumulates and a lien is placed on the property for all deferred tax payments and interest. Three percent simple interest per year is payable upon death of the homeowner, at the time the home is transferred to a new owner, or sooner, if the program participant chooses to pay off the deferred tax payments and interest.

"We encourage all eligible seniors who need help in paying their property taxes to look into this valuable program,” said Illinois Department of Revenue (IDOR) Director David Harris. “The deadline is March 1, and all applications must be submitted to the county collector’s office.”

To qualify for the Senior Citizens Real Estate Tax Deferral, a property owner must:

Be 65 years of age or older prior to June 1 of the year that the application is being filed with their local county collector's office,

Have a total annual household income of $65,000 or less,

Have owned and occupied the property or other qualifying residence for at least the last three years,

Own the property, or share joint ownership with a spouse, or be the sole beneficiary, or the property owner and spouse be the sole beneficiaries of an Illinois land trust,

Have no unpaid property taxes or special assessments on the property, and
 

Have adequate insurance against fire or casualty loss.

To apply for the program, seniors need to contact their local county collector's office to receive an application. Once completed, the application must be filed on or before March 1 of each year they wish to defer their property taxes or special assessments. There are no time extensions and taxpayers must apply each year they wish to participate.

For general questions concerning the program, taxpayers may visit IDOR's website at tax.illinois.gov or contact their local county collector's office.
 

[Text received from Maura Kownacki]