Senior Citizen Real Estate Tax Deferral

State

Illinois

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit permits eligible persons to defer payment of all or part of their real estate taxes or special assessment up to 80% of the property's equity. The total amount of taxes deferred per taxpayer per year may not exceed $7,500. The state pays the taxes and files a lien on the property to ensure repayment. The deferral must be repaid, plus 6% annual interest, within one year of the property owner's death or 90 days after the property no longer qualifies.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for this program.

Eligibility Criteria

Age

Homeowner

Income Ceiling

Principal Residence

Surviving Spouse

Other Criteria

Description of Eligibility Criteria

An eligible individual must be 65 or older by 1 June of the year for which deferral is claimed, own the qualifying property, and have a household income of $65,000 or less. The deferral is extended to surviving spouses if the spouse will be 55 or older within 6 months of the date of their partner's death. The owner must maintain homeowners insurance against fire and casualty. The property must not be income-producing, under a lien for unpaid real property taxes, or held in trust if under a land trust with the taxpayer as the sole beneficiary. The property must have been the applicant's principal residence for the last 3 years excluding periods in a nursing home or sheltered care home.

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

The state pays the property taxes but recovers the payment plus interest when the property is sold or transferred.

Record ID

IL105_RR22

Footnotes

Effective 1 January 2022, the household income eligibility limit is increased from $55,000 to $65,000 for tax years 2022 to 2025 pursuant to 2021 Ill. Laws no 102-0644 § 5 (SB2244). Effective 1 January 2022, the maximum annual deferral per taxpayer is increased from $5,000 to $7,500 for tax years 2022 to 2025 pursuant to 2021 Ill. Laws no 102-0644 § 5 (SB2244). Applications are administered by local county collectors who determine the eligibility of applicants. Applications must be filed by 1 March of each year. After that, there are no extensions.

Sources

320 Ill. Comp. Stat. § 30/1 ~ § 30/8 (in effect for 2022)
DuPage County Treasurer, Senior Citizens' Real Estate Tax Deferral Program
[https://cms5.revize.com/revize/dupage/Treasurer/Documents/Senior%20Citizen_s%20Real%20Estate%20Tax%20Deferral%20Packet%202023.pdf Accessed 01/02/2024]
View Archived Source
Illinois Department of Revenue, Property Tax Relief - Homestead Exemptions
[https://tax.illinois.gov/localgovernments/property/taxrelief.html Accessed 02/15/2023]
View Archived Source
2021 Ill. Laws P.A. 102-0644,§ 5 (SB2244).

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