Ignite FB Tracking PixelBasic guide to property tax deferment - The Dukes Real Estate Team- Jeanne Dukes & Erica Dukes Mooney
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Basic guide to property tax deferment

by The Dukes Real Estate Team- Jeanne Dukes & Erica Dukes Mooney 02/05/2024

In some states, qualified homeowners can use a property tax deferment to save on annual expenses. While deferring taxes usually refers to a period of delay in paying taxes on an item until a later date, property tax deferment comes with some additional important factors. Here is a quick guide about property tax deferrals:

How does it work?

Property tax deferment allows qualified homeowners to discontinue their real estate property taxes, as long as they remain qualified. While the taxes are deferred, there is a tax lien on the property. Interest will still accrue even if you're not making payments, and unpaid taxes will appear with a "delinquent" status on public records.

Who qualifies?

Specific qualifications vary by state, but senior citizens and homeowners with disabilities may qualify for a property tax deferment. However, the general rule only applies to the property serving as your primary residence. Therefore, if you qualify for a deferral but move to another home, taxes on the old property will resume. Check with your local government to find out what opportunities you have to delay your tax payments and what your responsibilities are as a new homeowner.

What happens next?

Tax deferrals do not last forever. If the deferral ends due to a home sale or inheritance, the tax collection will resume and require payment of the entire deferred amount. This amount would include interest accrued during the deferral period.

While property tax deferment can be a huge benefit to homeowners, the taxes still need to be paid eventually. Therefore, when considering a new home, it's crucial to investigate the tax situation to make the best financial choice.

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The Dukes Real Estate Team- Jeanne Dukes & Erica Dukes Mooney

Our mission is simple… To provide superior and professional service with the down-home charm that one would expect from native Tennesseans. We are committed to helping you achieve your dreams in a place that we so dearly love, and building relationships to last a lifetime. Whether relocating here, buying your first home or simply looking to move across town it would be our pleasure to serve you with ALL your real estate needs in the Greater Knoxville area!