Senior Citizen Property Tax Deferral

The Senior Citizen Deferral Program was established to help senior citizens having difficulty paying property taxes. This program allows senior citizens to leverage the equity in their home, providing two primary advantages:

  1. It limits the annual out-of-pocket payment for property taxes to 3 percent of total household income.
  2.  It provides predictability. The amount you pay will not change for as long as you participate in this program.

To be eligible, you must:

  1. Be at least 65 years old
  2. Have a household income of $60,000 or less.
  3. Have lived in your home for at least 15 years.

While in this program, you will only have to pay taxes equal to 3 percent of your net income, with the remaining tax paid by a low interest loan by the State of Minnesota. This is not a tax forgiveness program - the unpaid tax along with accumulated interest will become a lien on the property for future satisfaction, such as upon a sale or disposition of the estate. To receive further information and an application, contact the Department of Revenue .