The Senior Citizens Real Estate Tax Deferral Program has been expanded under a legislation signed into law by Gov. JB Pritzker.

“This legislation helps ensure that more older Illinoisans can remain in their homes without the fear of losing them to rising property costs,” Pritzker said in a news release.

The new law amends the Senior Citizens Real Estate Tax Deferral Act, introducing income eligibility enhancements effective in tax year 2025 and beyond, according to the Illinois Department of Revenue.

“The new law allows more Illinois seniors to qualify for tax deferral and stay current on their property taxes without risking their homes,” Department of Revenue Director David Harris said in the release.

What the new law means

Starting in tax year 2025:

• The maximum household income for eligibility will increase from $65,000 to $75,000 in 2026, then to $77,000 in 2027, and to $79,000 beginning in 2028 and thereafter.

To qualify for the Senior Tax Deferral Program, homeowners must meet the following criteria:

• be 65 years of age or older by June 1 of the filing year,
• own and occupy the primary residence for a minimum of three years,
• have no outstanding property taxes or special assessments on the property, and
• maintain adequate fire or casualty insurance.

Eligible seniors may defer up to $7,500 per year, including interest and fees, or as much as 80% of the equity in their home, whichever is lower.

The deadline to apply for the 2025 Senior Tax Deferral Program is March 1, 2026.

To apply, seniors must contact their local county collector’s office to receive an application. For general questions concerning the program, taxpayers may visit IDOR’s website at tax.illinois.gov or contact their local county collector’s office.