Interest and fees for property tax deferment
When you defer your annual property taxes, interest and fees may apply.
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 and are not changed outside of these dates
- Calculated on the 23rd of each month
- Not compounded
The current interest rates are in effect until September 30, 2021.
|Tax deferment program||Interest rate|
|Families with Children Program||2.45%|
|Financial Hardship Program†||2.45%|
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:
- Fees (if applicable)
Use our interest calculator to estimate your annual and daily interest amounts.
If you apply for the Regular Program, you'll 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
|Year||Deferral Amount||Principal||Interest (0.45%)||Fees||Total|
|Year 2 End Total||$6,000||$40.50||$70.00||$6,110.50|
|Year||Deferral Amount||Principal||Interest (2.45%)||Fees||Total|
|Year 2 End Total||$6,000||$220.50||$0||$6,220.50|