New Law Expands Property Tax Relief for Seniors in Illinois

Original article: https://abc7chicago.com/post/new-law-expands-property-tax-relief-seniors-illinois/18294543/

📰 Illinois Just Expanded Property Tax Relief for Senior Homeowners
A new law in Illinois has widened property tax relief for older adults who own and live in their homes. It does this by increasing eligibility for the Senior Citizens Real Estate Tax Deferral Program — a state program that lets qualifying seniors defer (postpone) paying part or all of their annual property taxes.

📈 Key changes under the law:

• Higher income limits mean more seniors can now qualify. The maximum household income threshold will rise from $65,000 to $75,000 in 2026, then to $77,000 in 2027, and $79,000 in 2028 and beyond.
  
  
• To be eligible, you must be 65 or older, own and live in your home for at least three years, have no unpaid taxes or assessments, and carry proper insurance on the home.
  
  
• Eligible seniors may defer up to $7,500 per year (including interest and fees) or up to 80% of their home equity, whichever is lower.
  
  
• For the 2025 tax year, the application deadline is March 1, 2026.
  
  

💡 What “deferral” means: Rather than eliminating the tax, this program lets qualified seniors delay payment — the state pays it now and the homeowner pays later, typically when the home is sold or transferred.

This change is meant to help more older adults stay in their homes and afford rising property costs without the immediate burden of annual tax bills.