Property Tax Deferrals: How and When to Apply

12 August 2025

Paying property taxes can sometimes feel like a heavy financial burden, especially for homeowners dealing with unexpected expenses, fixed incomes, or economic hardships. The good news? There’s a solution that might offer some relief—property tax deferrals.

If you're wondering what this means, think of it as hitting the pause button on your property tax payments. Instead of paying your taxes right away, you can delay them until a later date, typically when you sell your home or transfer ownership. Pretty useful, right?

In this guide, we’ll break down everything you need to know about property tax deferrals—how they work, who qualifies, and how to apply. So, if you’re looking for ways to keep more cash in your pocket while staying on top of your tax responsibilities, keep reading!

What is a Property Tax Deferral?

A property tax deferral allows eligible homeowners to temporarily postpone paying their property taxes. This does not mean your taxes are forgiven—you’ll still owe them, but you won’t have to pay until a future date. In most cases, deferred taxes accrue interest, so while it provides relief now, it's important to understand the long-term costs.

Think of it like a student loan—you're allowed to delay payments, but the amount owed doesn’t just disappear. However, if cash flow is an issue right now, this deferral could be a lifeline to help you get through tough times.

Who Qualifies for a Property Tax Deferral?

Property tax deferrals aren’t available to everyone. Typically, local or state governments offer these programs to specific groups of homeowners. You may qualify if you fall into one of the following categories:

1. Senior Citizens

Many states and municipalities offer property tax deferrals to seniors aged 65 and older. Since retirees often live on a fixed income, deferring taxes can provide much-needed financial flexibility.

2. Disabled Homeowners

If you have a disability that limits your ability to work, you may be eligible for a deferral. Some programs cater specifically to disabled individuals or veterans who are struggling to keep up with property tax payments.

3. Low-Income Homeowners

Some areas offer tax deferrals to low-income households. If your income falls below a certain threshold, you might qualify, allowing you to delay your tax payments until your financial situation improves.

4. Homeowners Facing Hardship

Unexpected life events, like job loss, medical emergencies, or economic downturns, can make it difficult to cover property taxes. Some programs provide temporary deferrals to help homeowners get back on their feet.

Pros and Cons of Property Tax Deferrals

Before you apply, it's crucial to weigh both the benefits and drawbacks of deferring your property taxes.

✅ Benefits of a Property Tax Deferral

- Immediate Financial Relief – If you're struggling with expenses, deferring taxes can free up cash for other essentials.
- Avoid Foreclosure – Falling behind on property taxes can lead to foreclosure. A deferral can prevent this worst-case scenario.
- Allows Seniors to Stay in Their Homes – Many seniors rely on fixed incomes. A deferral helps ensure they can continue living in their homes without financial strain.

❌ Drawbacks to Consider

- Accrued Interest – Some deferral programs charge interest. Over time, the total amount owed can grow significantly.
- Limited Eligibility – Not everyone qualifies. You might not be eligible based on income, age, or location.
- Potential Impact on Heirs – If you plan to pass your home down to family, they’ll be responsible for the deferred taxes.

How to Apply for a Property Tax Deferral

Applying for a property tax deferral isn't as complicated as you might think, but it does require some paperwork and patience. Here’s a simple step-by-step guide to get you started:

Step 1: Check Eligibility

The first thing you need to do is find out if you're eligible. Contact your local tax office or visit their website to see if they offer a deferral program and what the requirements are.

Step 2: Gather Required Documents

Most applications require certain documents, such as:

✔ Proof of age (if applying as a senior)
✔ Proof of disability (if applying due to disability)
✔ Income statements (for low-income applicants)
✔ Proof of financial hardship (if applicable)
✔ Property deed or ownership documents

Step 3: Fill Out the Application

Most local tax authorities provide an official application form. This form requires you to provide personal information, details about your property, and proof that you meet the eligibility criteria.

Step 4: Submit the Application

Once you've completed the paperwork, submit it to your local tax assessor’s office. Some locations allow you to apply online, while others require mail or in-person applications.

Step 5: Wait for Approval

Processing times vary, but you should receive an approval or denial within a few weeks to a couple of months. If approved, your tax payments will be postponed according to the program’s terms.

When Should You Apply for a Property Tax Deferral?

Timing plays a key role in successfully applying for a tax deferral. Here are a few important points to keep in mind:

- Before Financial Trouble Hits Hard – If you foresee financial struggles, apply before you miss a tax payment.
- Before Property Tax Deadlines – Many programs have application deadlines that align with tax due dates. Missing the deadline can delay or block approval.
- As Soon as You Become Eligible – If you recently turned 65, became disabled, or experienced a sudden drop in income, don’t wait—apply immediately!

Frequently Asked Questions About Property Tax Deferrals

❓ Does a Property Tax Deferral Affect My Credit Score?

Generally, no. Since tax deferrals are government-approved programs, they don’t negatively impact your credit. However, not paying property taxes without enrolling in a deferral program can lead to tax liens, which can hurt your credit.

❓ Can I Sell My Home If I Have a Deferral?

Yes, but the deferred taxes will typically be due in full when you sell the property. If you have plans to sell in the near future, consider this before applying.

❓ What Happens If I Pass Away Before Repaying My Deferred Taxes?

In most cases, the deferred taxes become the responsibility of your estate or heirs. They will need to pay off the balance before ownership of the home can be transferred.

❓ Can I Still Apply If I Have a Mortgage?

Yes, but your mortgage lender might have some say in the process. Some lenders require taxes to be paid annually, so it’s best to check with them before applying.

Final Thoughts

Property tax deferrals can be a lifeline for homeowners struggling to keep up with expenses. Whether you’re a senior, a disabled homeowner, or simply going through financial hardship, taking advantage of this program might help you stay afloat without losing your home.

However, it’s important to read the fine print—while deferrals provide temporary relief, they aren’t a permanent fix. Make sure you understand the terms, potential interest charges, and future repayment obligations before signing up.

If you think a property tax deferral could help ease your financial burden, check with your local tax office today and start the application process. After all, a little planning today can bring you peace of mind tomorrow.