Interest and fees for property tax deferment

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

Learn about:

• Interest
• Fees

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 are enrolled in. The interest rates are:

• Set April 1 and October 1 every year
• Calculated on the 23rd of each month
• Not compounded

The current interest rates are in effect until March 31, 2025.

Note: Interest rates are determined on December 15 and June 15 each year (6 months prior to April 1 and October 1)

Interest rates for property tax deferment programs

Tax deferment program	Interest rate
Regular Program	4.95%
Families with Children Program	6.95%
Financial Hardship Program†	6.95%

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

Under the Families with Children program, you're charged simple interest at a rate not greater than the prime rate of the government's 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 deferred
• You are not charged interest on top of the amount of interest owed
• You are not charged interest on application or renewal fees

If you make a payment on your property tax deferment account, they payment is applied in the following order, starting with the oldest year debt first:

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

Estimate your interest

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

Fees

When you first apply for the Regular Program, you will be charged a $60 administrative fee. For every year that you renew your application, you will be charged a $10 renewal fee. These fees are charged and added to your loan balance if you are approved. Each April, you will receive an annual Statement of Account letter which will indicate fees.

You will not be charged these fees if your application under the program or your renewal application have been denied.

You will not be charged these fees if you apply for the Families with Children Program.

Example of how interest and fees accumulate

Regular Program

Year	Deferral Amount	Principal	Interest (4.95%)	Fees	Total
Year 1	$3,000	$3,000	$148.50	$60.00	$3,208.50
Year 2	$3,000	$6,000	$297.00	$10.00	$3,307.00
Year 2 End Total		$6,000	$446.50	$70.00	$6,515.50

Families with Children Program

Year	Deferral Amount	Principal	Interest (6.95%)	Fees	Total
Year 1	$3,000	$3,000	$208.50	$0	$3,208.50
Year 2	$3,000	$6,000	$417.00	$0	$3,417.00
Year 2 End Total		$6,000	$625.50	$0	$6,625.50