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. A “homestead” is defined as the owner-occupied primary dwelling place of the claimant. It may consist of a part of a multidwelling or multipurpose building. The exemption extends to land surrounding the homestead which is necessary for its use as a home. This may not exceed one acre. 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. Requirements include A) 65 or older B) A child under 18 who has no parent or guardian C) A widow or widower D) A disabled person recognized by the social security administration, railroad retirement board, or by the Office of Management and Budget E) a disabled veteran F) A person who was taken by a hostile force G) Blind To apply for 2017 deferral, 2016 income must be less than $43,503. 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. The homeowner must also have proof of adequate insurance to receive the benefit.

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 December 20th of each year, the state tax commission shall pay to each county tax collector 1/2 of the amount due as reimbursement for property taxes deferred. They shall pay the second 1/2 of the reimbursement by June 20th of the following year. However, claims are subject to approval and disapproval by the state tax commission. The payments may be combined with payments for the property tax reduction. The total amount of reimbursement payable to all counties shall not exceed $500,000 for one calendar year. In the event that the amount of deferral exceeds $500,000, the amount of taxes deferred for each qualifying property shall be reduced proportionately.

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. Application must be filed by the day taxes are due.


Idaho Code Ann. § 63-712 ~ § 63-718 (in effect for 2017)
2017 Property Tax Deferral Program (2016) Idaho Tax Commission [ Accessed on 09/18/2017]

View Archived Source

Property Tax Deferral Application [ accessed 06/26/2018]

View Archived Source

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