Lexington Helps Seniors Defer Property Taxes

Lexington seniors who are 65 or older with household incomes of $70,000 or less can legally postpone paying all or any part of their property tax bill and let the value of their house pay the bill later. Money that would have gone to paying property tax becomes the homeowner’s to spend in any way he or she wants.  FY2018 deferrals will enjoy a very low 0.82% simple interest rate.

Seniors who defer their property tax use the money for a variety of purposes. For some, it makes a vacation or dining out more affordable.  Others pay for needed home repairs or enhancements, or find that it simply helps them with their daily needs.

Deferrals are a very safe way to free up income. By law and by contract, a senior can never be forced to sell or move due to taxes deferred under this program. Seniors who are considering commercially available reverse mortgages will find that deferrals offer terms that are much more favorable to the senior.

Each year’s deferral is like an individual loan that doesn’t have to be paid back in the homeowner’s lifetime unless home ownership is transferred or he or she chooses to pay it off.

Surviving spouses who also qualify may continue the deferrals.

The rate on each year’s deferral is locked in and can never go up in the homeowner’s lifetime.
This low simple interest rate (not compounded) is based on a Federal Reserve rate that generally runs three points below the current Prime Rate.

For detailed information on the Property Tax Deferral Program and other state and local tax programs, visit the Town of Lexington website at www.lexingtonma.gov and enter “2018 Property Tax Relief Brochure” into the search function in the upper right corner of the screen.  Copies of the brochure are also available at the Town Office Building or from the Human Services Department at the Community Center.  You can also contact Human Services at 781-698-4840 for confidential consultation.

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