Minnesota Senior Property Tax Deferral 2026 Guide

Written & Reviewed by

Analic Mata-Murray

Managing Editor

Yolanda Taylor

Senior Healthcare Editor

Last updated: May 4, 2026

Contents

• What the Senior Deferral Program Is
• Is It Right for You?
• Who May Qualify
• What You Actually Pay
• The Lien — What It Means for Your Home
• How to Apply
• Application Checklist
• Phone Scripts
• County Contacts
• Alternatives to Deferral
• Frequently Asked Questions
• Resumen en español
• About This Guide

What the Senior Deferral Program Is

The Minnesota Senior Citizens’ Property Tax Deferral Program lets qualifying homeowners age 65 and older pay only a small part of their property tax bill. The state pays the rest — but as a loan, not a gift. That loan earns interest and must be repaid when you sell the home, move out, or pass away.

This program is for people who want to stay in their home but cannot manage the full tax bill right now. If you have not yet tried the homeowner refund (Form M1PR), start there first. For most seniors, the refund is a better deal because it does not put a lien on the home. See the full picture at our MN property tax guide.

Before you sign anything involving deferred taxes or liens, our grant vs. loan guide explains exactly what you are agreeing to.

Is It Right for You?

The deferral program makes sense when all of these are true:

• You cannot afford the full tax bill right now, and a refund alone does not close the gap.
• You plan to stay in the home and are not planning to sell soon.
• You understand that the deferred amount will be taken from your home’s equity when it is eventually sold.
• You do not have a reverse mortgage or life estate, which disqualify you from this program.

The deferral program is not the right choice if you plan to leave the home to your children free of debt, if you have a reverse mortgage, or if your home equity is already low. In those cases, the loan could eat into what you leave behind or what you need to access.

Who May Qualify

You must meet every one of these rules, according to the Minnesota Department of Revenue:

Helping a parent? Always check who is on the deed before assuming they qualify. A life estate in a parent’s name, a reverse mortgage, or a trust may block the program entirely. Call 651-556-4803 before you apply to confirm.

What You Actually Pay

Under the deferral program, you pay 3% of your prior-year total household income each year. The state pays the rest of your property tax bill as a loan.

Example: If your 2025 household income was $36,000 and your 2026 property tax bill is $3,600, you would pay $1,080 (3% × $36,000) and the state would loan you the remaining $2,520.

Interest on the loan accrues each year. The rate varies but does not go above 5%, according to the Department of Revenue deferral page. The total amount owed grows over time. The longer you stay in the program, the more the loan balance builds.

Once you are accepted, you do not reapply every year. The program continues automatically until you sell the home, move out, or choose to leave the program. For more on the full timeline and repayment process, the deferral program FAQ answers common questions about how the lien and payoff process works.

The Lien — What It Means for Your Home

This is the most important thing to understand about the senior deferral program: when you enroll, the state places a lien on your home for the amount it loans you each year. The lien grows as more loans are added.

The full loan amount — including all deferred taxes and interest — must be repaid:

• When you sell the home.
• When you stop using it as your main residence.
• Within 90 days after your death, from your estate.

If you plan to pass the home to your children, they will need to pay off the state loan before they can take full ownership — or they may need to sell the home to cover it. Discuss this with your family before you apply.

The lien does not mean you will lose the home while you live there. But it does mean the home is no longer fully free of debt once you enroll.

How to Apply

Step 1. Make sure you meet all the requirements in the table above. If you have a reverse mortgage, life estate, or a state or federal tax lien, stop here — you do not qualify.

Step 2. Order a current property report. This takes time, so do it early. The state requires a property report dated within 30 days of your application.

• For Torrens property: a certificate of title from your county recorder.
• For abstract property: an owners and encumbrances report from a licensed abstracter.

If you are not sure which type you have, call your county recorder and ask.

Step 3. Complete the CR-SCD application form. Include your current property tax statement and the property report.

Step 4. Submit your application by November 1. Applications received after November 1 will apply to the following year’s taxes, not the current year.

Step 5. For questions, call the Department of Revenue at 651-556-4803.

Application Checklist

• ☐ Confirm you are 65 or older (or spouse is 62+ if married)
• ☐ Confirm household income is $96,000 or less
• ☐ Confirm you have owned and homesteaded the property for at least 5 years
• ☐ Check for reverse mortgage, life estate, or liens that may disqualify you
• ☐ Order property report (Torrens = certificate of title; abstract = owners and encumbrances report)
• ☐ Gather current property tax statement
• ☐ Complete CR-SCD application
• ☐ Submit by November 1

Phone Scripts

Script 1 — Calling the Department of Revenue to ask if you qualify:
“I’m calling to ask about the Senior Citizens’ Property Tax Deferral Program. I’m [age] years old and my household income last year was about [amount]. I’ve owned my home for [years] and it has been homesteaded the whole time. I want to know if I might qualify and what documents I need to start.” Call 651-556-4803.

Script 2 — Calling your county recorder to find out what type of property report you need:
“Hello, I’m applying for the senior property tax deferral program and I need to get a property report. Can you tell me whether my property at [address] is Torrens or abstract, and who I should contact to get the report?” Call your county recorder’s office.

Script 3 — Calling to ask about the lien and repayment:
“I have a question about the senior tax deferral program. I understand a lien goes on my home. Can you explain how much would be owed if I were in the program for five years, and how repayment works if the home is inherited?” Call 651-556-4803.

County Contacts

Alternatives to Deferral

Before applying for the senior deferral loan, consider these options. Some do not put a lien on your home.

• Homeowner refund (M1PR): If your income is under $142,490, this refund can return up to $3,480 without any lien. Try this first. See our Minnesota homestead credit refund guide.
• Special refund: If your bill jumped more than 12%, this adds up to $1,000 with no income limit.
• County payment plans: Ramsey County and others offer payment arrangements and penalty waivers. Call your county treasurer before you miss a payment.
• Energy bill help: LIHEAP and other utility programs can free up cash for your tax bill. See our utility bill assistance guide.
• Veterans exclusion: If you are a veteran with a service-connected disability, the market value exclusion can reduce your tax bill by a large amount without any loan.

If you need emergency help right now, our Minnesota emergency assistance guide lists programs for immediate financial help.

Real Situations Where Deferral Helps — and Where It Doesn’t

These examples show when the senior deferral program is a smart choice and when it may cause problems later.

When it helps — staying put on a tight income: A 72-year-old woman owns a home in rural Minnesota outright. Her income is $21,000 from Social Security. Her property tax bill is $2,400. After filing M1PR, she gets a $600 refund, but still owes $1,800 by May 15. She cannot make that payment without skipping other bills. She qualifies for the deferral program: 65+, income under $96,000, owned and homesteaded for 12 years, no reverse mortgage, no liens. She applies by November 1. Starting the next year, she pays only 3% of $21,000 = $630. The state loans her the remaining $1,770. She stays in her home comfortably. The loan builds over time but she understands that when the home is eventually sold, the state will be repaid first.

When it causes problems — home going to family: An 80-year-old man wants to leave his home to his two adult children. He enrolls in the deferral program at age 75. Over five years, the state has loaned $9,000 plus interest. When he passes away, the estate has 90 days to repay $10,000+. His children did not know about the lien. They did not have the cash ready. They had to scramble to sell quickly or arrange a loan to pay the state before probate could close. The deferral program was not wrong for him, but his family needed to know about it in advance.

When a reverse mortgage blocks it: A 78-year-old woman took out a reverse mortgage at 72 to cover home repairs. She now wants to apply for the senior deferral program because her taxes have risen. She does not qualify. A reverse mortgage is an automatic disqualifier. She can still apply for the M1PR homeowner refund if her income is under $142,490, and she can ask Ramsey County about a local hardship abatement. But the deferral program is not available to her.

Deferral vs. M1PR Refund — Side by Side

Both programs can reduce what you pay. But they work very differently. Here is how they compare.

The verdict: try the M1PR refund first. If the refund alone is not enough and you meet all the deferral requirements, the deferral program can bridge the gap — but go in knowing it is a loan that will be settled from your home’s equity.

Frequently Asked Questions

Is the senior deferral program free money?

No. It is a state loan secured by a lien on your home. You pay 3% of your prior-year household income each year. The state pays the rest. The full loan amount, with interest up to 5%, must be repaid when the home is sold, you move out, or within 90 days after death.

I have a reverse mortgage. Can I still apply?

No. A reverse mortgage disqualifies a property from the senior deferral program. The regular homeowner refund (M1PR) may still be available if you meet the income and ownership rules. Call the Department of Revenue at 651-556-4803 to discuss your options.

What happens to the lien when I die?

Your estate must repay the full amount of deferred taxes and interest within 90 days after your death. If the home is being passed to family members, they will need to settle the lien before full ownership transfers — or sell the home to cover it.

Do I have to apply every year?

No. Once you are accepted into the senior deferral program, you do not need to reapply each year. The deferral continues automatically until you leave the program, sell the home, or no longer qualify.

Can I leave the program if I change my mind?

Yes. You can leave the program at any time. When you do, the deferred taxes and interest become due. Call 651-556-4803 to ask about the process for ending participation and making repayment arrangements.

Resumen en español

El Senior Citizens’ Property Tax Deferral Program de Minnesota le permite pagar solo el 3% de su ingreso del hogar del año anterior en impuestos sobre la propiedad. El estado presta el resto. Pero no es dinero gratis. El estado coloca un gravamen en su vivienda. Cuando venda la casa o fallezca, el préstamo completo más intereses debe pagarse dentro de 90 días.

Para calificar, debe tener 65 años o más, ingresos del hogar de $96,000 o menos, haber sido dueño y tener la propiedad como homestead por al menos cinco años, y no tener hipoteca inversa ni vida en usufructo. Antes de aplicar, revise si el reembolso M1PR cubre sus necesidades — es mejor porque no pone gravamen en su hogar. Para preguntas, llame al 651-556-4803 o a la Senior LinkAge Line al 1-800-333-2433.

Last updated: May 4, 2026 | Next review: August 4, 2026

About the Authors

Analic Mata-Murray

Managing Editor

Analic Mata-Murray holds a Communications degree with a focus on Journalism and Advertising from Universidad Católica Andrés Bello. With over 11 years of experience as a volunteer translator for The Salvation Army, she has helped Spanish-speaking communities access critical resources and navigate poverty alleviation programs.

As Managing Editor at Grants for Seniors, Analic oversees all content to ensure accuracy and accessibility. Her bilingual expertise allows her to create and review content in both English and Spanish, specializing in community resources, housing assistance, and emergency aid programs.

Yolanda Taylor, BA Psychology

Senior Healthcare Editor

Yolanda Taylor is a Senior Healthcare Editor with over six years of clinical experience as a medical assistant in diverse healthcare settings, including OB/GYN, family medicine, and specialty clinics. She is currently pursuing her Bachelor's degree in Psychology at California State University, Sacramento.

At Grants for Seniors, Yolanda oversees healthcare-related content, ensuring medical accuracy and accessibility. Her clinical background allows her to translate complex medical terminology into clear guidance for seniors navigating Medicare, Medicaid, and dental care options. She is bilingual in Spanish and English and holds Lay Counselor certification and CPR/BLS certification.