What is a tax deferral program?

A tax deferral program is a program in which taxes are delayed or postponed instead of being paid immediately. This program is available in Washington to provide property owners and tenants financial relief when they cannot pay their property taxes. A deferral is typically granted for a one-year period, after which time the taxes must be paid in full. In Washington, the Department of Revenue administers the property tax deferral program, which is available to residential property owners who are over 61 years of age, disabled or low-income. To qualify for a tax deferral in Washington, an applicant must demonstrate financial hardship and provide proof of residency in the state. Once a deferral is approved, the taxes are put on hold until the property is sold, or until the applicant passes away. Property owners and tenants who receive a deferral are responsible for keeping up with the interest accrual associated with the deferral, which is a small percentage of the total tax amount. When the taxes are due, the original amount plus interest will be owed. Tax deferrals help ensure that property owners and tenants in Washington can stay in their homes and are not driven out by taxes they can’t pay. While this program is available to qualifying applicants, it is important to remember that taxes must still be paid at some point, so it is best to plan ahead.

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What is a tax deferral program?

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