At What Age Do You Stop Paying Property Taxes? The Fine Print

You may have heard that at 65 you can stop paying property taxes. No state stops taxing every older homeowner by age alone. But in about thirty states and D.C., some older homeowners can defer the tax: the state or the county pays the bill, a lien goes on the house, and interest runs until the home is sold, the owner moves out or dies. Here's what it costs, which states have it, who ends up paying it back, and what to try first when the tax bill gets hard to carry. 0:00 Intro 0:47 No magic age 1:41 A loan with your house behind it 3:48 The bill at the end 5:50 Almost nobody uses it 7:15 The fine print 8:27 Versus a reverse mortgage 9:29 If you can't pay The numbers in this video: Which states: in 2018 the Lincoln Institute counted statewide deferral programs in 18 states and D.C. (in Michigan only for special assessments, in Montana and Ohio only for military members) and local-option programs in 9 more. Maine went statewide in 2022. A February 2025 review by Vermont's Department of Taxes counted 31 states plus D.C. Full exemption by age is rare: in Alabama, homeowners 65+ with net taxable income of $12,000 or less on their federal return (couple combined) owe no property tax on their home. 2026 interest rates: Illinois 3%, Colorado 4.238%, Texas 5%, California 5% (not compounded), Washington 5%, Florida 5.51%, Oregon 6% (not compounded), Massachusetts up to 8%. Income limits: Oregon $70,000, Illinois $77,000 (tax year 2026), California $57,002 (2026–27); Texas has none. Example (illustrative, our arithmetic): a $4,000 tax deferred for 10 years at 5% simple interest = $40,000 borrowed, $51,000 owed. At 3%: $46,600. At 6%: $53,200. On a $300,000 house, $51,000 is 17% of its value. Oregon's brochure: "Will my heirs be liable for the debt? Yes. Heirs or other transferees may become personally liable for the debt." The balance is due by August 15 of the year after the death. Illinois and Colorado: within a year. Texas: the county can sue 181 days after a notice. The deferral can continue for a surviving spouse 55+ in Texas, an heir 57+ in Washington, a spouse still in the home in California. Who uses it: Washington, 2022 — 114,072 people on the senior exemption, 277 deferral applications. Massachusetts, 2016 — 926 of 457,000 homeowners over 65. Oregon — over 13,000 homes in the late 1980s, about 3,500 in 2024 (rules tightened in 2011). Typical participation: about 1%. Ceilings: Massachusetts — half the value of your share of the home; Illinois and Washington — 80% of your equity; Florida — deferred tax, interest and all other liens under 85% of the home's value, or 30 days to pay the difference; Texas — none. Deadlines: Illinois by March 1; Florida by March 31; Colorado by April 1; Oregon by April 15 (late until December 1, with a fee); California October 1 – February 10; Texas any time (affidavit, Form 50-126). Sources Oregon Department of Revenue, Senior and Disabled Property Tax Deferral, publication 150-490-015 (2026); report to the Legislature on HB 3506 (Aug. 2026) Illinois Department of Revenue, PIO-64 (Nov. 2025); Colorado Department of the Treasury, Property Tax Deferral Program (2026) Texas Tax Code §33.06 and §31.031; Texas Comptroller of Public Accounts California Government Code §16183; California State Controller, Property Tax Postponement; Legislative Analyst's Office, Oct. 8, 2018 Revised Code of Washington ch. 84.38; Washington Department of Revenue, Property Tax Statistics 2023 Massachusetts General Laws c.59 §5, clause 41A; Florida Statutes 197.2421–197.312 Alabama Department of Revenue, Homestead Exemptions (H-3) Lincoln Institute of Land Policy, Summary Table on Property Tax Deferrals (2018); Langley & Youngman, Property Tax Relief for Homeowners (2021) Vermont Department of Taxes, Property Tax Deferrals: Review of the National Landscape (Feb. 11, 2025) Munnell & Walters, Center for Retirement Research at Boston College (2018) Consumer Financial Protection Bureau, reverse mortgages (HECM) General information from public sources, not personal tax, legal or financial advice. Rules differ by state and county; check with your state revenue department or county before you apply. This channel is not affiliated with any government agency. The research, script and graphics are made for this channel.