Good news for Illinois seniors: expanded property tax relief

State Representative Patrick Sheehan is encouraging senior homeowners to take advantage of the Senior Citizens Real Estate Tax Deferral Program that was expanded through legislation passed during the fall 2025 Veto Session.

"I am encouraging all seniors to take advantage of the expanded senior property tax exemption that we passed during Veto Session," said Rep. Sheehan. "Now, more seniors will be eligible for property tax relief, something that House Republicans have been adamant about providing. We owe it to all Illinoisans to prioritize affordability and accountability, and this is a good start."

The new law increases the threshold of maximum household income for eligibility from $65,000 to $75,000 for the taxable year 2026. In taxable year 2027, the threshold will reach $77,000, and in taxable years of 2028 and beyond, the maximum income limit will be $79,000.

To qualify, senior homeowners must:

• 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 senior homeowners may defer up to $7,500 per year, including interest or fees included in property tax bills, or as much as 80% of the equity in their home, whichever is the lesser amount.

Seniors must apply for the taxable year 2026 by March 1, 2026. For more information, visit tax.illinois.gov.