Senior Citizen Property Tax Deferment
The Senior Citizen Property Tax Deferral Program is a voluntary program administered by the State of Minnesota. It provides 2 primary advantages to seniors: it limits the amount of property tax they pay to 3% of their total household income, and it provides predictability because the amount of tax does not change as long as they participate.
To qualify for the program, all of the following qualifications must be met:
- The property owner must be 65 years old and occupy the property as a homestead. If married, both must be as least 65 years old.
- The TOTAL household income of the homeowners is less than $60,000.
- The property must have been owned and occupied as a homestead for at least 15 years.
- There are no state or federal liens on the property.
- Mortgages and other liens do not exceed 75% of the market value.
Once approved, the State then pays the remaining property tax as a low interest loan.
The tax loan and interest will need to be paid back when the property is sold. Any income tax refunds and property tax refunds are held and applied to the loan. Forms and instructions for this program are available from the MN Dept of Revenue.