The Will County Treasurer facilitates this program for the State of Illinois.
The Senior Citizens Real Estate Tax Deferral Program provides tax relief for qualified senior citizens by allowing them to defer all or part of their property tax and special assessment payments on their principal residences. This is a loan program through the State of Illinois.
The deferral is similar to a loan against the property’s market value. Deferred amounts are borrowed from the State of Illinois, who pays the tax bill. To ensure repayment, a three percent simple interest rate is charged on the deferred amounts and a lien is filed on the property. The three percent interest is charged for each year that the deferred amount is carried. Below is an example:
If your deferred tax was $2,000 and you choose not to pay off the deferment after the first year the interest would accrue as follows:
- $60 the first year
- $120 at the end of the second year
- $180 at the end of the third year, and so on
Our office mails out the IL 1017 SENIOR DEFERRAL APPLICATION and IL 1018 SENIOR DEFERRAL RECOVERY AGREEMENT in December of each year. The completed forms need to be submitted by the March 1st deadline each year.
To qualify for this program you must meet the following requirements:
- Be 65 years of age by June 1 of the year that the application for deferral is being filed.
- Have a total annual household income of no more than $65,000.
- Have lived in the property or other qualifying property for at least the last three years.
- Own the property, or share joint ownership with the spouse or be the sole beneficiaries of an Illinois land trust.
- Have no delinquent property taxes or special assessments on the property.
- Have adequate insurance against fire or casualty loss.
- Have written approval from the spouse, if filing jointly, or trustee if the property is held in a qualifying Illinois Land Trust, to participate in the program.
- If you have a reverse mortgage you do not qualify for the program.
- The maximum amount that can be deferred, including interest and lien fees, is 80% of the taxpayer's equity in the property. The maximum deferral each year is limited to $7,500.00.
Please review the Senior Citizen Real Estate Tax Deferral Brochure for more information.