12 States Where Seniors Can Defer Their Property Taxes

Lowering your tax bill can be one way to maximize your retirement savings. Luckily, some states offer property-tax deferral programs that allow those who qualify to postpone paying property taxes.

Postponement ranges from as little as a year and to as long as the entire length of the time you own the home.

Many of these programs are targeted toward seniors on relatively modest incomes who may need to access cash. Here are 12 states where seniors can take advantage of these programs.

If you live in California and are a senior, you can apply to defer current-year property taxes on your principal residence, assuming you meet specific criteria. Residents who are blind and or have a disability may also qualify.

Among other requirements, you will need to have at least 40% equity in your home and have an annual income of $53,574 or less.

The state notes that a lien against your property secures the deferment and that this must eventually be paid. The need to pay the property taxes at some point is common to most state programs that let you defer paying property taxes.

Seniors 65 and older who live in Colorado can defer property taxes on an owner-occupied principal residence.

There is a list of requirements, including that any mortgage or liens must be less than or equal to 75% of the property's value.

Idaho lets residents defer their property taxes on a home and up to one acre of land. 

Those eligible had to have an income of $60,170 or less in 2024 to qualify.

Seniors in Illinois can defer their property taxes via a state loan with a 3% simple interest rate.

To qualify, you must meet a list of requirements, including that you must be 65 years old as of June 1 of the year of the deferral and have a total household income of $65,000 or less.

The deferred taxes are required to be repaid within one year of the resident's death, or the sale or transfer of the home. Those ineligible for the program will have to pay the deferred amount within 90 days.

If you are 70 years of age or older by July 1 of a tax year — or 65, depending on the city or town — then you can apply for the Massachusetts property tax exemption for seniors.

To qualify, your income and assets cannot exceed a specific amount established by the state.

For specific inquiries, make sure to contact your local board of assessors. 

Homeowners in Michigan can defer property taxes if they meet specific requirements.

Such requirements include being at least 62 years of age or having a gross household income of $40,000 or less in the year prior but no later than December 31, 2006 (with more income brackets listed on the Michigan sliding scale). 

Various demographics such as eligible widows, veterans, or those with a disability may also qualify. Make sure to check with your local representatives for more information. 

In Minnesota, seniors may qualify for property-tax deferral if they are 65 years or older, have a household income of $96,000 or less, and have owned and lived in their home for at least the last five years. You also must meet a handful of other requirements.

Those who qualify are eligible to pay 3% of their total household income on property taxes. The rest is paid via the state as a loan. Eventually, the loan must be paid back with interest.

Oregon residents can apply for property-tax deferral. To qualify, you must be 62 years of age or older by April 15 and own the property. Those of any age who are eligible to receive federal Social Security disability benefits also might qualify.

Your net worth must be less than $500,000, not including the value of the home. You won't need to apply every year. However, every two years, you will need to recertify that you meet the qualifications.

In Tennessee, you can freeze property taxes on a principal residence at a base tax amount and keep the taxes there as long as you continue to qualify.

Those qualifications include owning a principal residence in a participating city or county, being 65 years or older by the end of the year in which you file the application, and having an income that does not exceed the county income limit for the applicable year. 

Utah residents can defer property taxes if they are at least 75 years old and had a household income of $81,680 or less in 2023. You also must meet other qualifications.

You are required to reapply each year, and your deferred tax amount will accrue interest at half the normal rate. You must pay the deferred taxes if you fail to reapply, sell the home, or transfer ownership to anyone but a surviving spouse.

It is also possible to get your taxes reduced by $1,259 if you are at least 66, had an income of less than $40,840 in 2023, and meet other requirements.

Washington residents who are at least 61 years old may qualify for a reduction in their property taxes.

To be eligible, you must meet several qualifications, including living in your house for more than six months of the year and having an income that is "the greater of the previous year's threshold or 70% of the county median household income," according to the state.

You might also qualify if you meet other qualifications.

Homeowners in Wyoming are eligible for tax deferral if they own a principal residence on 40 acres or less, are more than 62 years of age, have an income under the threshold set by the state or county, and bought property a decade before applying for the property tax deferral. 

Although you must pay the taxes at some point, interest does not accrue on the taxes you defer. Others who meet qualifications also might be eligible for property-tax deferral in Wyoming.

Moving to a state that helps you postpone paying property taxes — or that offers other tax breaks — can help set you up for a stress-free retirement. Make sure you look carefully at the requirements and stipulations of such programs.

Some states may require you to reside there for several years before you qualify for tax-deferral programs. It is also important to meet all the other qualifications for your state's program and to follow the rules carefully.