Property Tax Deferral Program





Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type



The benefit is a deferral of property tax. During the period of deferral, interest shall accrue on the amount deferred at the annual rate of 6% annually.

How is Benefit Disbursed


Eligible Property Type


Characteristics of Eligible Property

Only homesteads are eligible for this benefit. “Homestead” means the dwelling, owner-occupied by the claimant and used as the primary dwelling place of the claimant. The homestead may be occupied by any members of the household as their home, and so much of the land surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling as a home. It may consist of a part of a multidwelling or multipurpose building and part of the land upon which it is built. Homestead does not include personal property such as furniture, furnishings or appliances, but a manufactured home may be a homestead.

Eligibility Criteria




Income Ceiling

Principal Residence


Surviving Spouse

Other Criteria

Description of Eligibility Criteria

Claimant must meet all eligibility requirements for circuit breaker tax reduction except for income limitations. To apply for 2015 deferral, 2014 income must be less than $42,776. No application for deferral of property taxes shall be granted if: (a) the application fails to show sufficient equity in that property to secure the payment of all existing deferrals granted in the property; or (b) the application fails to show proof of insurance of an amount adequate for the amount of the deferred tax and interest. In addition, the homeowner must have sufficient equity, which includes that the property is not security for a reverse mortgage and that the total encumbrances on the property do not exceed 80% of the current year's market value.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

By no later than 20 December of each year, the state tax commission shall pay to the county tax collector of each county 1/2 of the amount due each county as reimbursement for property taxes deferred as shown on the property tax reduction roll, as modified by actions of the state tax commission relating to claims approved or disapproved by the state tax commission, and shall pay the second 1/2 of such amount by not later than 20 June of the following year. The payments may be combined with payments made for property tax reduction. The total amount of reimbursement payable to all counties under this section shall not exceed $500,000 in regard to property taxes for one calendar year. In the event that the amount of taxes approved for deferral exceeds $500,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately and the balance of property tax not deferred shall be entered on the property tax notice.

Record ID



Income is defined as federal adjusted gross income, less deductions for certain medical and funeral expenses, business losses, early withdrawal penalties, and alimony. Income also includes social security and similar benefits, as well as most non-taxable income. The state tax commission shall file with the county recorder of the county in which the property is located a notice of lien for deferred property taxes. The lien for deferred taxes and interest shall not be a first and prior lien, but shall take its priority from the date and time of filing of the notice of lien. A deferral of property tax payments shall terminate on the earlier of: (a) voluntary payment of the full amount of deferred tax and interest to the state tax commission; (b) the death of the qualified claimant. In the case of more than one qualified claimant, the death of the last surviving qualified claimant; (c) a sale or other transfer of title to the property or any part of the property except a transfer of title to a surviving spouse of a deceased qualified claimant; (d) the property no longer qualifies for the exemption due to residential improvements; (e) a determination by the state tax commission that the deferral of property tax payments was erroneously granted to a person who is not a qualified claimant or in regard to property that is not qualified property.


Idaho Code Ann. § 63-712 ~ § 63-718 (in effect for 2015)
2015 Property Tax Deferral Program (2014) Idaho Tax Commission [ Accessed on 06/10/2015] View Archived Source

Join Our Mailing List

Back to top