What you should know about property tax deferment

by Meryl Diamond 02/03/2022

In real estate, a property tax deferment means a temporary delay in property tax payments for qualifying properties and homeowners. While there are other types of tax deferral options, property taxes come with their own set of rules and special terminology. Here are some key things to consider about property tax deferments:

How it works

Deferring your property taxes means putting off regular payments. While you don't have to pay your property taxes, a tax lien will be placed on the property and the unpaid amount will continue to gain interest. When the deferment period ends, the owed amount must be paid in full for the lien on the property to be removed.

How you qualify

Seniors and people with disabilities can often qualify for a property tax deferment from their local governments. As long as the qualified homeowner is using a property as a primary residence, they can defer taxes either until the end of their life or the sale of the property. Each state has different rules, so it's important to investigate what your individual opportunities might be for tax deferment.

Why it matters

Property taxes are a major expense for homeowners of any age, but can become a burden for those without regular income, either due to retirement or disability. Therefore, it can be beneficial to defer property taxes and lower regular expenses to preserve savings and income.

While the taxes must eventually be paid for the lien on the property to be removed, deferment can save qualified homeowners thousands of dollars. If you're interested in learning more about how tax deferment might apply to you, consider reaching out to a financial consultant or tax professional.

About the Author
Author

Meryl Diamond

While I was born and raised in Brooklyn, New York, I have spent the last 27 years living in the Lisle and Naperville area. The first single family home my husband and I ever owned was in Green Trails, Lisle. There were two things we loved about living in Green Trails - the sense of community and all the green space. This was a dream come true for my children who always had a friend to play with or a babysitter near by. For me, it gave me a chance to get to know the neighbors whom I have built lifelong friendships with. From neighborhood garage sales to summer barbeques, we always found reason to come together.