Oregon does not stop charging property taxes at any age. Ownership carries the tax bill for as long as you own the home. What changes at 62 is your access to the Oregon Property Tax Deferral for Disabled and Senior Homeowners Program, which lets qualifying seniors borrow from the state to cover their annual property tax bill and postpone payment until the home is sold, transferred, or the owner no longer qualifies.1Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners Program For the 2026 tax year, the age floor is 62 and household income must be under $70,000.
How the Deferral Works
The program is a loan, not an exemption. If you qualify, the Oregon Department of Revenue pays your property taxes directly to the county each November 15. A lien is recorded against your property, and the deferred balance grows each year as the state pays the next round of taxes on your behalf.1Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners Program
Interest accrues at 6 percent per year on each payment the state makes. It’s simple interest, so you’re charged only on the original tax amounts, not on accumulated interest.1Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners Program Every dollar the state pays must eventually come back, with interest, when a repayment event occurs. What the program removes is the annual cash crunch, not the underlying obligation.
Who Qualifies at 62
Every requirement below must be met at the time you apply for the 2026 tax year:2Oregon Department of Revenue. 2026 Publication OR-PTD, Oregon Property Tax Deferral for Disabled and Senior Homeowners
- You must be at least 62 years old by April 15 of the year you file.
- You must have owned and lived in the home as your primary residence for at least five consecutive years before April 15, and been an Oregon resident for that same period.
- Total 2025 household income cannot exceed $70,000, counting all taxable and non-taxable income for everyone in the home.
- Net worth must be under $500,000, excluding the home itself and personal property.
- The home’s real market value must fall below the limit set for your county, or below the statewide minimum cap of $301,000, whichever is greater.
- The home must be covered by homeowner’s insurance for fire and other casualties.
- You cannot have delinquent property taxes when you apply.
The income figure is where applicants most often miscalculate. Social Security benefits, pension distributions, and investment income all count, even the pieces that aren’t taxable on your federal return. Add up everything for every person in the home before assuming you’re under the cap.
The property value ceiling matters too. The $301,000 statewide floor applies in counties with lower median home values; higher-cost counties like Multnomah and Washington use higher county-specific limits. The Department of Revenue adjusts the caps annually using the Consumer Price Index for the West Region.3Oregon Public Law. Oregon Revised Statutes 311.670 – Eligibility of Property
If You Have a Reverse Mortgage
A reverse mortgage generally disqualifies you. Oregon carved out a narrow exception for reverse mortgages entered into between July 1, 2011, and January 1, 2017, and only if the property passes an equity test at the time of application. Homeowners who were already on the deferral program before July 1, 2011, with a reverse mortgage predating 2011, are exempt from the equity test.4Oregon Public Law. OAR 150-311-0656 – Deferral Criteria When Applying With a Reverse Mortgage If your reverse mortgage was opened on or after January 1, 2017, you cannot participate.
How to Apply and When
Applications for the 2026 tax year are filed with your county assessor’s office between January 1 and April 15. The county forwards the paperwork to the Department of Revenue for a final eligibility decision. Once approved, the state pays your taxes on November 15 and records the lien.1Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners Program
Miss April 15 and you still have a window. Late applications are accepted between April 16 and December 1, with a late fee of 10 percent of the taxes shown on your most recent tax statement, minimum $20, maximum $180 for 2026.1Oregon Department of Revenue. Oregon Property Tax Deferral for Disabled and Senior Homeowners Program
After approval, you recertify every two years. The Department of Revenue sends a notice when it’s due. If something changes between recertifications and you stop meeting a requirement, you’re expected to report it.
What Triggers Repayment
The deferred balance is not open-ended. Oregon law lists the events that make the full balance, accrued interest, and fees due:5Oregon Public Law. Oregon Revised Statutes 311.684 – Circumstances Requiring Payment of Deferred Tax and Interest
- Sale of the home or transfer of title to someone else.
- Death of the homeowner who claimed the deferral, or of the surviving co-claimant.
- Loss of eligibility, including moving out of the home or income rising above the limit.
When one of these events happens, repayment is due by August 15 of the following calendar year. The Department of Revenue sends a disqualification notice with the amount owed and the deadline.6Oregon Public Law. OAR 150-311-0690 – Timing and Repayment of Disqualified Accounts If the homeowner dies in March 2026, the estate or heirs have until August 15, 2027 to pay off the balance. That’s time to sell or settle, but the date itself is firm.
Surviving Spouse Options
A spouse’s death does not automatically force immediate repayment. The surviving spouse can continue the deferral in one of two ways:7Oregon Public Law. OAR 150-311-0700 – Election by Spouse to Continue Tax Deferral
- Active status. The state keeps paying property taxes each year. You must be at least 59½ (or disabled), the home must still be your primary residence, and your household income must stay under the annual limit. If you weren’t named on the original application, you file a new one.
- Inactive status. The existing balance stays on the books and keeps accruing interest, but the state stops paying new taxes. You pay the county directly each year. This option is open even if you’re younger than 59½, and once you turn 62 you can apply to switch back to active status.
For a spouse below the age threshold, inactive status is what keeps the existing balance from coming due while you wait to become age-eligible.
Disabled Veteran Exemption
Separate from the deferral, Oregon offers a genuine exemption for disabled veterans and their surviving spouses. This is a permanent reduction in your tax bill, not a loan, and it never has to be repaid. Eligibility runs on veteran status rather than age, so it’s worth checking whether you qualify alongside the deferral.
Under ORS 307.250, a veteran with a service-connected disability rating of 40 percent or more can exempt a portion of the home’s assessed value. For the 2026 assessment year, the exemption amounts are $27,092 or $32,512, depending on the level of disability.8Oregon Department of Revenue. Disabled Veteran or Surviving Spouse Property Tax Exemption These figures increase 3 percent each year.9Oregon State Legislature. Oregon Revised Statutes 307.250 – Property of Veterans or Surviving Spouses
The higher exemption amount generally requires a more severe disability or additional service criteria. Income matters as well: the veteran’s total gross income for the prior calendar year, including VA disability compensation and any government retirement pay, cannot exceed 185 percent of federal poverty guidelines.9Oregon State Legislature. Oregon Revised Statutes 307.250 – Property of Veterans or Surviving Spouses Surviving spouses of veterans who died from service-connected causes can also claim the exemption if they remain unmarried. Applications go through your county assessor’s office. A veteran who qualifies for both the exemption and the deferral can use them together; the exemption simply reduces the tax amount the state has to defer each year.