Property Tax Deferral Programs

Property Tax Deferral Program Overview

Colorado’s Property Tax Deferral Program has traditionally helped seniors and active military personnel continue to afford to live in their homes by deferring the payment of their property taxes.

On January 1st, 2023, the State of Colorado is expanding the deferral program to allow those who do not qualify for the senior or military personnel program to defer a portion of their real property taxes if they exceed the property tax-growth cap of 4%, averaged from the preceding two years.

Under this program, the minimum amount a taxpayer may defer is $100 and the maximum cumulative taxes that a taxpayer may defer is $10,000.

The application must be filed between January 1, 2024 and April 1, 2024. Taxpayers must reapply each year to continue deferring prior year taxes, as well as to request deferral on current year taxes.

How Does It Work?

The State Treasurer's office makes the approved tax deferral amount payment directly to the county on behalf of the participant by April 30th of that year. If the payment made by the state results in an overpayment, a refund will be issued to the homeowner by the county treasurer and the state deferral payment will be applied. 

The deferral program does not exempt taxes; it is a loan to assist Coloradans with the payment of real property taxes if an application is submitted and the applicant is eligible. The deferral loan is recorded as a junior lien against the participant's property and does not have to be repaid until the participant no longer qualifies to defer the approved amount. Interest shall accrue beginning May 1st of the calendar year in which the deferral is claimed, until the loan is paid in full. Deferral repayment is due 90 days after a non-qualifying event. Prior year deferrals must be resubmitted for approval to continue deferral status along with any current year applications. 

If a loan for deferred taxes and accrued interest is not paid by the due date, such amounts are delinquent as of that date and the State Treasurer MAY foreclose for the deferred tax lien.

Senior Deferral Program

To qualify for the Senior Deferral program the following requirements must be met:

Taxpayer must be a person who is sixty-five years of age or older

The property must be owner occupied. The taxpayer claiming the deferral must, by themselves or jointly with another person, reside at the property. The taxpayer must own the fee simple estate or be purchasing the fee simple estate under a recorded instrument of sale, or own the mobile home or be purchasing the mobile home under a recorded instrument of sale Non-Residence Exception: An owner not residing at the property, is not residing at the property due to ill health. This condition shall not prevent the taxpayer from meeting the requirements of eligibility. The property for which the deferral is claimed must not be income-producing. All previous property taxes must be paid in full. The total value of all liens or mortgages and deeds of trust must be less than or equal to 75% of the actual value of the property.
If not less than or equal to 75%, a completed subordination agreement in the form prescribed by The State will be required. However, the total value of liens of mortgages, deeds of trust and deferrals cannot exceed 100% of the actual value, otherwise the application shall be denied

Your Market Value can be found on your current year tax bill or by visiting your County Assessor’s website

PLEASE NOTE: HAVING A REVERSE MORTGAGE MEANS A PROPERTY IS ONLY ELIGIBLE FOR FUTURE DEFERRALS IF A SUBORDINATION AGREEMENT IS SUBMITTED FROM THE LENDER WITH THE APPLICATION

The claim must be filed between January 1, 2024 and April 1, 2024. Taxpayers must reapply each year to continue to claim the deferral.

Active Military Deferral Program

To qualify for the Active Military program the following requirements must be met:

A person must be called into military service on January 1 of the year in which the person files a claim for deferral.  The property must be owner occupied by the taxpayer claiming the deferral. 

The taxpayer claiming the deferral must, by themselves or jointly with another person must reside at the property. They further must own the fee simple estate or be purchasing the fee simple estate under a recorded instrument of sale, or, own the mobile home or be purchasing the mobile home under a recorded instrument of sale

Non-Residence Exception: An owner not residing at the property, is not residing at the property due to ill health. This condition shall not prevent the taxpayer from meeting the requirements of eligibility

The property for which the deferral is claimed must not be income-producing.  

All previous property taxes must be paid in full.

The total value of all liens of mortgages and deeds of trust is less than or equal to 90% of the actual value of the property.  If not less than or equal to 90%, a completed subordination agreement in the form prescribed by the state will be required. However, the total value of liens of mortgages, deeds of trust and deferrals cannot exceed 100% of the actual value, otherwise the application shall be denied.

Your Market Value can be found on your current year tax bill or by visiting your County Assessor’s website

PLEASE NOTE: HAVING A REVERSE MORTGAGE MEANS A PROPERTY IS ONLY ELIGIBLE FOR FUTURE DEFERRALS IF A SUBORDINATION AGREEMENT IS SUBMITTED FROM THE LENDER WITH THE APPLICATION.

The claim must be filed between January 1, 2024 and April 1, 2024. Taxpayers must reapply each year to continue to claim the deferral

Expanded Program (Tax-Growth Cap)

A person who is not otherwise eligible for deferral consideration with the Senior or Active Military Programs may elect to defer a portion of their real property taxes if the real property taxes increase by a specified amount (the tax growth cap).

The tax-growth cap is met when the current year’s property tax amount has increased 4% or more from the average of the two preceding tax years’ amounts on their owner-occupied parcel. Under this program, the minimum amount a taxpayer may defer with the expanded program is $100 and the maximum cumulative taxes that a taxpayer may defer is $10,000.

The property must be owner occupied

The taxpayer claiming the deferral must own their home, by themselves or jointly with another person residing at the property. The applicant must own the fee simple estate or be purchasing the fee simple estate under a recorded instrument of sale, or own the mobile home or be purchasing the mobile home under a recorded instrument of sale

Non-Residence Exception: An owner not residing at the property, is not residing at the property due to ill health. This condition shall not prevent the taxpayer from meeting the requirements of eligibility

The property for which the deferral is claimed must not be income-producing

All previous property taxes must be paid in full

The cumulative value of the deferral provided in this section plus the interest accrued on the deferral shall not exceed the market value of the property less the value of all mortgages which constitute liens upon the property and any other liens upon the property filed prior to the date of recordation of the certificate for deferral

Your Market Value can be found on your current tax bill or by visiting your County Assessor’s website

Look for your contact information for your county assessor here

The claim must be filed between January 1, 2024 and April 1, 2024. Taxpayers must reapply each year to continue to claim the deferral.

Events Requiring Repayment of Deferral Loans

An existing deferral is due in full 90 days after a non-qualifying event occurs.

Taxpayers with existing deferrals must reapply each year. Failure to do so will result in required repayment of the deferral amount by June 30th of the year a renewed application is not received.

Non-qualifying events:

The taxpayer who claimed the tax deferral dies

Spouse survivorship may be considered for continuing the deferral

The State Treasurer Office must review and approve any such requests

The property on which the taxes were deferred is sold or becomes subject to a contract of sale, or the title to the property is transferred to someone other than the taxpayer who claimed the tax deferral

The property is no longer owner occupied

Except in the case of a taxpayer required to be absent from such tax-deferred property by reason of poor health

The deferred property no longer meets the requirements of the approved deferral program

The location of the deferred mobile home has changed

When the assessor or treasurer has reason to believe any of the circumstances in this section has occurred, they shall promptly notify the State Treasurer

Repayment of Deferral

Deferral program repayments will be sent to the State Treasurer.

Please send deferral payments to:

Colorado State Treasurer

RE: Deferral Repayment

200 East Colfax Avenue

State Capitol, Suite 140

Denver, CO 80203