Illinois Tax Deferral Program Update: Financial Relief for Seniors

The Illinois Department of Revenue (IDOR) recently announced significant changes to the Senior Citizens Real Estate Tax Deferral Program, prompted by legislative updates. These enhancements aim to expand eligibility, potentially alleviating the financial burdens of property taxes on senior homeowners across the state.

Effective from the 2025 tax year, this revised statute increases the income threshold for qualifying seniors. The maximum household income for eligibility will rise from $65,000 to $75,000 in 2026 and will continue to increase to $77,000 in 2027, reaching $79,000 in 2028. These adjustments reflect evolving regulatory compliance requirements to help seniors manage escalating property costs.

To participate in the deferral program, applicants must be at least 65 by June 1 of the application year, own and reside in their primary residence for at least three years, have no outstanding property taxes or special assessments, and maintain sufficient property insurance. Eligible seniors may defer up to $7,500 annually, encompassing both interest and fees, or defer up to 80 percent of the home's equity, whichever is lower. The deadline for 2025 applications is March 1, 2026.

Senior homeowners interested in this program should contact their county collector's office. More information is accessible on the official IDOR website at tax.illinois.gov. By broadening this program, the IDOR aims to support seniors in sustaining homeownership without the immediate burden of property tax payments, contributing to enhanced risk management and financial stability for older residents.