Want to Postpone Your Property Taxes? Here’s How California’s Program Can Help

The California Property Tax Postponement Program provides a valuable opportunity for eligible homeowners to ease their financial burden by deferring their property taxes for the 2024-2025 tax year. Whether you’re facing unexpected expenses, living on a fixed income, or simply looking for ways to manage your budget more effectively, this program can help you maintain your home without the immediate strain of property tax payments.

In this article, we’ll walk you through the essential details of the program, including its purpose, the eligibility requirements, how to apply, and how the interest on deferred taxes is calculated.

💡 Did you know that the CARE program can help you with your electricity and natural gas bills? Follow the link above to learn how to participate in this program.

What is the California property tax relief program?

The program is designed to deliver California property tax postponement for senior citizens and disabled homeowners. Citizens can defer their property tax until the next tax year, but will still have to pay it in full eventually. To qualify, you need to meet the following criteria: 

• You are blind or have a long-term disability that impacts your quality of life 
• You have at least 40% equity in your property and your annual income is less than $53,574 — low-income households may also be eligible for income tax credits
• You are willing to secure the deferment of the taxes by placing a lien against the property

How has the California property tax postponement program changed?

The major change revolves around the constant increase of property tax by at least 2% per year. This is so that the level of tax levied tracks inflation from one financial year to the next. Articles and guides from previous years will show maximum household incomes of approximately $51,000. This is an outdated figure because the income threshold rises each year to counteract the impact of inflation eroding purchasing power. 

Is the California property tax postponement only for senior citizens?

No, you must not be 62 or older to get help under the program. If you have a registered disability that meets the eligibility requirements, you may also be able to apply for property tax postponement. Further details can be found on the PTP fact sheet. 

👉 It’s important to note that you are only deferring your property taxes — they will need to be repaid at a later date which will be presented to you during your application. 

Is my California home eligible for a property tax freeze?

The key point is that the program is assessed based on your age and disability status first and foremost. There are no restrictions in terms of square footage, property value, zip code, etc. However, in addition to the equity requirement listed above, you should also know that:

• The PTP cannot be used to clear late or delinquent property taxes as these are not covered 
• To be eligible to freeze taxes, you need to file your taxes before February 10, 2025 deadline 
• You can only defer property taxes in California for your principal place of residence 

👉 More details and appeals forms can be found by contacting your local County Clerk. You can start this process when you click here. Speaking to your County Clerk is imperative as filing deadlines vary on a county by county basis. 

How is interest calculated in the CA PTP program?

Because you are deferring the property tax and have to pay it off at a later date, you will incur interest on the principal amount. The annual interest rate for all property taxes covered by the PTP program is 5% per year. Speaking with a qualified personal accountant will help you understand the long-term implications of this additional source of interest and how long it may take you to pay off. 

Where can I get help with my CA PTP application?

The CA PTP application form is an 18-page document that can appear overwhelming if you are seeing it for the first time. We suggest simplifying things by following this process: 

• Download the form using the link above 
• Add your personal information to the form: social security number, contact details, address, income, etc. 
• Create a list of questions you need to clarify and work through until the end of the form, making sure not to sign and day 
• Call (800) 952-5661 or send a message to postponement@sco.ca.gov when you have your complete list of queries
• You will be referred to your local County Clerk who can provide localized assistance for your case 

👉 Working through a form of this length and complexity requires patience and time. Think of it as a job that will require several sessions and you will find it much less daunting. 

Planning ahead with the California property tax relief program

The CA property tax relief program is a thoughtful initiative aimed at helping homeowners reduce the financial strain of property taxes while remaining in their primary residence. However, it’s important to remember that this is a deferral program, not a forgiveness plan. The deferred taxes will accrue interest, and a lien will be placed on your property to secure the postponed amount.

By understanding these terms and planning accordingly, eligible homeowners can take advantage of this program to ease their cost of living while retaining control of their homes. If you’re considering applying, weigh the benefits and responsibilities carefully to determine if this option aligns with your financial goals.

FAQ’s