Houlihan Lawrence Inc.
Kelly Corwen, Houlihan Lawrence Inc.Phone: (914) 262-3639
Email: [email protected]

Basic guide to property tax deferment

by Kelly Corwen 06/16/2022

In some states, qualified homeowners can use a property tax deferment to save on annual expenses. While deferring taxes usually refers to a period of delay in paying taxes on an item until a later date, property tax deferment comes with some additional important factors. Here is a quick guide about property tax deferrals:

How does it work?

Property tax deferment allows qualified homeowners to discontinue their real estate property taxes, as long as they remain qualified. While the taxes are deferred, there is a tax lien on the property. Interest will still accrue even if you're not making payments, and unpaid taxes will appear with a "delinquent" status on public records.

Who qualifies?

Specific qualifications vary by state, but senior citizens and homeowners with disabilities may qualify for a property tax deferment. However, the general rule only applies to the property serving as your primary residence. Therefore, if you qualify for a deferral but move to another home, taxes on the old property will resume. Check with your local government to find out what opportunities you have to delay your tax payments and what your responsibilities are as a new homeowner.

What happens next?

Tax deferrals do not last forever. If the deferral ends due to a home sale or inheritance, the tax collection will resume and require payment of the entire deferred amount. This amount would include interest accrued during the deferral period.

While property tax deferment can be a huge benefit to homeowners, the taxes still need to be paid eventually. Therefore, when considering a new home, it's crucial to investigate the tax situation to make the best financial choice.

About the Author
Author

Kelly Corwen

As an agent with Houlihan Lawrence, the market leader in real estate, I have access to a referral network for my clients seeking to buy or sell real estate in the United States and worldwide.  I look forward to putting my experience and the power of Houlihan Lawrence to work for you.  Please let me know if you are interested in a comparative market analysis for your home, or if you or your friends and family are looking for a real estate salesperson.  It would be my sincere pleasure to work with you.