Property tax relief for seniors in Idaho

Who qualifies

Both programs are for Idaho residents who own and live in their home. You qualify through age if you are 65 or older on January 1, 2027. People who are blind, widowed, disabled, a former POW or hostage, or a motherless or fatherless child under 18 can also qualify.

The home must:

• Be your main home, and you must have lived in it before April 15, 2027. A mobile home counts.
• Have a current homeowner's exemption.
• For Property Tax Reduction, have a value under a legal limit that is set in June 2027.

For the 2027 programs:

Both programs cover your home and up to one acre of land. Neither one lowers solid waste, irrigation or other fees on your bill.

What counts as income

The income limit is for your total income for 2026.

Income that counts:

• Social Security and SSI
• Pensions, annuities, IRAs and military retirement
• Railroad retirement
• Wages, interest, dividends and capital gains
• Net income from a business, farm or rental
• Unemployment and workers' compensation, and disability income
• Health and Welfare payments, child support, alimony received and gambling winnings

Income that does not count:

• The return of principal from an annuity, and certain rollovers
• VA compensation for a 40% to 100% service-connected disability
• VA dependency and indemnity compensation, and VA death benefits for a service-connected death or disability

Costs you can subtract (Property Tax Reduction). You can take off what you or your spouse paid in 2026 for:

• Medical and dental costs not paid back by insurance (the IRS definition is used)
• Funeral costs, paid or prepaid
• Farm, rental or business losses
• Early withdrawal penalties and alimony paid

Fill out the Medical Expense Statement to show these costs. The deferral program also lets you subtract medical insurance premiums.

Each program explained

Property Tax Reduction (circuit breaker)

This program lowers the property tax on your home. The lower your income, the bigger the cut, up to $1,500. If you are approved, the reduction shows on your December 2027 property tax bill.

You may still qualify if you live in a care facility or nursing home in 2027, or lived in one in 2026. Ask your county assessor.

Property Tax Deferral

This program lets you wait to pay your property taxes. The state pays the county for you, so the deferral does not show on your bill. The taxes you put off, plus interest, become a lien on your home.

You must repay when:

• You sell or transfer the home
• The last person who qualified dies
• The home no longer has a homeowner's exemption

You cannot use the deferral if the home has a reverse mortgage or a home equity line of credit. Your fire and casualty insurance must name the Idaho State Tax Commission as a loss payee.

To apply for the deferral, you need a copy of your Property Tax Reduction application (or its income section), so you can apply for both programs.

How to apply

Property Tax Reduction

1. When: between January 1 and April 15, 2027, for 2027 taxes.
2. Where: online through the Tax Commission's TAP system (idahotap.gentax.com), or on a paper application filed with your county assessor. The assessor's office will help you fill it out.
3. What to bring:
   • If you file a tax return: your federal return, papers for income not on the return, Schedule A or the Medical Expense Statement with proof of payment, and proof of funeral payments.
   • If you do not file: your Social Security, Railroad Retirement or other 1099s, W-2s, other income papers, the Medical Expense Statement with proof of payment, and proof of funeral payments.
   • Proof that you own the home and meet the age or other rule.
4. If you do not have all your income papers yet, file what you have by the deadline.

Property Tax Deferral

1. When: between January 1 and September 7, 2027, for 2027 taxes.
2. Where: online through TAP, or with your county assessor.
3. What to bring: your recorded deed, title or purchase contract with the legal description; your fire and casualty insurance policy; a statement of your home's assessed value from the assessor; and a copy of your Property Tax Reduction application (or its income section if you did not apply).

After you apply

• Apply every year. Neither program renews by itself.
• Watch your December bill to see your reduction.
• If you sell the home or it loses its homeowner's exemption, a deferral must be repaid.
• The Tax Commission's guides do not describe an appeal process. If you disagree with a decision, ask your county assessor or call the Tax Commission.

Things people miss

• Medical costs lower your income. Many people over the income limit qualify once unpaid medical bills, insurance premiums and funeral costs are taken off. Keep your receipts.
• You need the homeowner's exemption first. Without it, you cannot get either program.
• The application link may show the wrong year. The Tax Commission's page lists a form labeled "2026." Ask your assessor to make sure you have the right form.
• Disabled veterans have a separate benefit with no income limit. Ask your county assessor.

Free help

• Your county assessor's office: helps you fill out both applications.
• Idaho State Tax Commission: (208) 334-7736, or (800) 972-7660 ext. 7736 toll free. Hearing impaired: Idaho Relay Service (800) 377-3529.
• Idaho Commission on Aging: 1-877-471-2777, for help finding your Area Agency on Aging.

For other programs, see all benefits in Idaho.

Phone numbers: Free help lines for Idaho agencies

Check what you may qualify for