California has a tax postponement program for certain homeowners, which allows them to postpone paying their property taxes for primary residences. This program is available to homeowners who are over 62 years old, blind, or have a disability. Additionally, the homeowner must occupy the home, and there must be a total household income of $35,500 or less. The homeowner must have at least 40% equity in the property.
How does it work?
When a homeowner is accepted to the program, their taxes are postponed for that year. The interest rate is 7% per year. The State will place a lien on the home until the account is paid in full.
The loan becomes due when the homeowner:
- Moves or sells the property;
- Transfers title to the property;
- Defaults on the senior lien;
- Passes away; or,
- Obtains a reverse mortgage.
Tax postponement is a limited program, so apply early.
The state will process applications in the order received. There is limited funding for the program, so it is a good idea to apply early. Applications will become available in September 2019 for the 2019-2020 filing period. For questions, call (800) 952-5661 or email email@example.com. You can also contact them to join the tax postponement mailing list.