Interest and Fees for Property Tax Deferment

When you defer your annual property taxes, interest and fees may apply.

Learn about:

Interest

Interest is charged on your tax deferment loan from the date your property tax is due or the date you apply to defer your taxes, whichever is later.

The interest rate you are charged depends on the tax deferment program you chose. The interest rates are set every April 1 and October 1. The current interest rates are in effect until March 31, 2018.

Regular Program: 0.70%
Families With Children Program: 2.70%
Financial Hardship Program:  2.70%

Under the Regular Program, you'll be charged simple interest at a rate not greater than 2% below the prime rate of our principal banker.

Under the Families with Children Program, you'll be charged simple interest at a rate not greater than the prime rate of our principal banker.

† The Financial Hardship Program was only available to homeowners in 2009 and 2010.

How Interest is Calculated

The Property Tax Deferment Program uses simple interest, which means:

  • You are only charged interest on the principal deferred amount that has been borrowed
  • You aren't charged interest on top of interest
  • You aren't charged interest on application or renewal fees

If you make a payment on your property tax deferment account, it’s applied in this order:

  1. Fees (if applicable)
  2. Interest
  3. Principal

Estimate Your Interest

Use our interest calculator to estimate your annual and daily interest amounts.

Fees

If you apply for the Regular Program, you will be charged a $60 administrative fee when your application is approved and a $10 renewal fee for each year you renew. These fees are added to your loan balance. Don’t send payment for these fees with your application or renewal forms.

If you apply for the Families with Children Program, you won’t be charged any fees.

Example of How Interest and Fees Accumulate

Regular Program:

Year Deferral Amount Principal Interest (0.70%) Fees Total
Year 1 $3,000 $3,000 $21 $60 $3,081
Year 2 $3,000 $6,000 $42 $10 $3,052
Year 2 End Total   $6,000 $63 $70 $6,133

Families with Children Program:

Year Deferral Amount Principal Interest (2.70%) Fees Total
Year 1 $3,000 $3,000 $81 $0 $3,081
Year 2 $3,000 $6,000 $162 $0 $3,162
Year 2 End Total   $6,000 $243 $0 $6,243