How to Apply for Oregon's Senior and Disabled Property Tax Deferral Program
A step-by-step guide from AuctionBlock.org
If you are a senior or a person with a disability living in Oregon, and you are struggling to pay your property taxes, there is a state program that may be able to help. It is called the Senior and Disabled Property Tax Deferral Program, and it is administered by the Oregon Department of Revenue under ORS 311.666 through 311.701.
This program allows qualifying homeowners to defer — meaning postpone — their property tax payments. The state pays your property taxes on your behalf, and the amount becomes a lien on your property that is repaid later, typically when the home is sold or transferred. You stay in your home. You do not lose your property.
This guide explains how the program works, who qualifies, how to apply, and what to expect after you are enrolled.
What Is Property Tax Deferral?
Property tax deferral is not the same as a property tax exemption. With an exemption, your taxes are reduced or eliminated. With deferral, your taxes are still owed — but the state pays them for you now, and you pay the state back later.
Think of it as a loan from the State of Oregon, secured by your home. The state pays your county tax collector directly. A lien is placed on your property for the amount paid plus interest. When you eventually sell the home, move out, or pass away, the deferred taxes plus interest are repaid from the proceeds of the property.
The key benefit: you keep your home. You are not forced to sell or face foreclosure because you cannot afford your property tax bill today.
(Source: Oregon Department of Revenue, Property Tax Deferral for Disabled and Senior Citizens, ORS 311.666-701)
Who Is Eligible?
To qualify for the Senior and Disabled Property Tax Deferral Program, you must meet all of the following requirements:
Age or Disability
You must be either:
- Age 62 or older as of April 15 of the year you apply, OR
- Determined to be disabled by the Social Security Administration, the Department of Veterans Affairs, or the Oregon Public Employees Retirement System (PERS). You will need documentation of your disability determination.
(Source: Oregon Department of Revenue, Form 150-490-015 instructions)
Ownership and Residency
- You must own the property and it must be your primary residence. Rental properties, vacation homes, and investment properties do not qualify.
- You must have lived in the home as your primary residence.
- The property must be located in Oregon.
Household Income
Your total household income must fall within the program's income limit. The Oregon Department of Revenue adjusts the income limit periodically. Household income includes the income of everyone living in the home, not just the property owner.
The income limit has historically been tied to the area median income. Because this number changes, you should check the current limit directly with the Oregon Department of Revenue or your county assessor's office before applying.
To find the current income limit, call the Oregon Department of Revenue at (503) 378-4988 or visit their website. You can also contact your county assessor's office — they will know the current threshold.
(Source: Oregon Department of Revenue, ORS 311.666)
No Reverse Mortgage or Certain Liens
Your property generally cannot have a reverse mortgage. There are also restrictions related to certain types of liens on the property. If you have a reverse mortgage and are worried about your property taxes, contact the Oregon Department of Revenue to ask about your specific situation.
Oregon Residency
You must be an Oregon resident. The program is funded by the State of Oregon and is available only for properties within the state.
How Does the Money Work?
The deferral covers your entire property tax bill — you do not pay any property taxes out of pocket while you are enrolled in the program. The state pays the full amount to your county.
However, interest accrues on the deferred amount. The interest rate is set by the Oregon Department of Revenue and is based on a formula tied to federal rates. The rate is typically lower than commercial loan rates, and it is set annually. Confirm the current rate directly with the Oregon Department of Revenue before making any financial decisions.
(Source: Oregon Department of Revenue, ORS 311.701)
Here is a simplified example to illustrate how deferral works over time:
- Your annual property taxes are $3,000.
- You enroll in the deferral program at age 70.
- Each year, the state pays $3,000 in property taxes on your behalf.
- Interest accrues on the total deferred balance.
- After 10 years (at age 80), you have deferred roughly $30,000 in property taxes, plus accumulated interest.
- When the home is sold or transferred, the deferred amount plus interest is repaid to the state from the sale proceeds.
The lien cannot exceed the value of the property. If the deferred amount plus interest exceeds the property's value at the time of repayment, the state absorbs the difference — the homeowner's estate is not responsible for any shortfall.
How to Apply: Step by Step
Step 1: Confirm Your Eligibility
Before you fill out any forms, confirm that you meet all the eligibility requirements listed above. If you are unsure about any of them — especially the income limit — call the Oregon Department of Revenue at (503) 378-4988. They can tell you the current income threshold and answer questions about your specific situation.
You can also contact your county assessor's office. In Benton County (where AuctionBlock.org is based), the assessor's office can be reached at (541) 766-6855.
Step 2: Get the Application Form
The application form is Oregon Department of Revenue Form 150-490-015, titled "Senior and Disabled Citizens Property Tax Deferral Application." You can obtain this form:
- From the Oregon Department of Revenue website
- By calling (503) 378-4988 and requesting a copy by mail
- From your county assessor's office
Step 3: Gather Your Documents
You will need the following to complete your application:
- Proof of age: A copy of your driver's license, state ID, birth certificate, or passport showing your date of birth.
- Proof of disability (if applying based on disability, not age): A letter from the Social Security Administration, the Department of Veterans Affairs, or PERS confirming your disability determination.
- Proof of ownership: Your property deed or most recent property tax statement showing you as the owner.
- Income documentation: Federal tax returns for the applicable tax year, Social Security benefit statements (Form SSA-1099), pension and retirement income statements, and any other income documentation for all members of your household.
- Property information: Your property's tax lot number or account number (found on your property tax statement).
Step 4: Complete the Application
Fill out Form 150-490-015 completely. The form asks for:
- Your name, address, date of birth, and Social Security number
- Your spouse or co-owner's information (if applicable)
- Your property's legal description and tax account number
- Your household income for the applicable year
- Information about any liens, mortgages, or reverse mortgages on the property
Answer every question. Incomplete applications may be delayed or denied.
Step 5: Submit Your Application
Mail or deliver your completed application and all supporting documents to:
Oregon Department of Revenue Property Tax Division PO Box 14380 Salem, OR 97309-5075
You can also deliver the application in person to the Oregon Department of Revenue office in Salem, or submit it through your county assessor's office.
Step 6: Know the Deadline
The application deadline is April 15 of the tax year for which you are requesting deferral. If April 15 falls on a weekend or holiday, the deadline moves to the next business day.
If you are applying for the first time, you must apply by April 15. If you miss this deadline, you must wait until the following year to apply.
(Source: Oregon Department of Revenue, ORS 311.672)
Step 7: Wait for Approval
After submitting your application, the Oregon Department of Revenue will review your eligibility. Processing times vary, but you should receive a response within a few months. If your application is approved, the state will begin paying your property taxes starting with the current tax year.
If your application is denied, you will receive a letter explaining why. Common reasons for denial include exceeding the income limit or having an ineligible lien on the property. You may reapply the following year if your circumstances change.
What Happens After You Are Approved?
Automatic Renewal
Once you are enrolled, you do not need to reapply every year. The deferral continues automatically as long as you continue to meet the eligibility requirements. However, you must file an annual certification — a short form — confirming that your circumstances have not changed: that you still live in the home, still meet the income requirement, and still own the property.
The Oregon Department of Revenue will mail you this certification form each year. Complete and return it by the deadline indicated on the form.
If Your Circumstances Change
You must notify the Oregon Department of Revenue if:
- You move out of the home
- You sell or transfer the property
- You rent out the property or it stops being your primary residence
- Your household income exceeds the program limit
- You take out a reverse mortgage on the property
Failing to report changes could result in penalties or interest charges on top of the deferred taxes.
Repayment
The deferred taxes plus interest are repaid when one of the following happens:
- You sell the home
- You transfer ownership of the home
- The home is no longer your primary residence
- You pass away (repayment comes from your estate or the proceeds of the home sale)
The state's lien is repaid from the proceeds of the property sale or transfer. If you pass away and your heirs inherit the home, they can either repay the deferred amount or sell the home to settle the lien.
Frequently Asked Questions
Will I lose my home if I enroll in this program?
No. The entire purpose of the program is to help you keep your home. The state pays your property taxes so you do not face foreclosure. The lien is repaid later, not while you are living in the home.
Does this affect my mortgage?
If you have a mortgage, your lender may require you to pay property taxes through an escrow account. Enrolling in the deferral program means the state — not your escrow — pays the taxes. Contact your mortgage servicer before applying to make sure enrolling will not trigger a violation of your loan terms. Most mortgage holders allow it, but you should confirm.
What if I owe back taxes?
The deferral program covers current-year property taxes. It does not automatically pay off delinquent taxes from prior years. If you owe back taxes, contact your county tax collector to discuss payment arrangements. Once you are enrolled in deferral, future taxes will be handled by the state, which prevents the problem from getting worse.
Can my spouse or partner continue the deferral if I pass away?
If your spouse or partner is a co-owner and meets the eligibility requirements (age or disability, income limit), they can continue the deferral. The surviving co-owner should contact the Oregon Department of Revenue to update the account.
Is there a limit to how much can be deferred?
The total deferred amount (taxes plus interest) cannot exceed the property's real market value. In practice, for most homeowners, this limit is never reached.
What if I want to stop deferring?
You can leave the program at any time. If you choose to stop deferring, you resume paying property taxes normally. The previously deferred amount plus interest remains as a lien on the property and is repaid when the property is sold or transferred.
Other Oregon Programs That Can Help
The Senior and Disabled Property Tax Deferral Program is not the only help available. Oregon offers several other property tax relief programs:
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Oregon Property Tax Exemption for Disabled Veterans (ORS 307.250-307.283): Veterans with service-connected disabilities may qualify for a property tax exemption — a permanent reduction in your tax bill, not a deferral. Contact your county assessor.
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Property Tax Payment Plans: If you owe back taxes, most Oregon counties offer payment plans. You do not need to pay the full amount all at once. Contact your county tax collector.
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Oregon Homeowner Assistance Fund: Funded by the federal American Rescue Plan Act and administered by Oregon Housing and Community Services. This program provides direct financial assistance to homeowners who experienced COVID-19-related financial hardship. Eligible uses include delinquent property taxes, past-due mortgage payments, and other housing costs. Check with Oregon Housing and Community Services for current availability.
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Low Income Property Tax Exemptions: Some Oregon counties and cities offer additional property tax exemptions or deferrals for low-income homeowners. Contact your county assessor's office to ask what is available in your area.
Important Disclaimer
This guide is educational information only. It is not legal advice, tax advice, or financial advice. Laws and program rules change. The eligibility requirements described here are based on the program as established under ORS 311.666 through 311.701, but specific figures — including income limits and interest rates — should be verified directly with the Oregon Department of Revenue before you make any decisions.
AuctionBlock.org is not a law firm, not a tax preparation service, and not a government agency. We are a mission-driven company providing educational resources about foreclosure prevention. Always consult with a qualified professional — a licensed attorney, a CPA, or a HUD-approved housing counseling agency — for advice about your specific situation.
Need Help?
If you are an Oregon homeowner facing property tax difficulties and you are not sure where to start, we are here to help you find the right resources.
Visit auctionblock.org/get-help to connect with us. We can help you understand your options, point you to the right programs, and connect you with organizations in your area that provide direct assistance.
You are not alone. There are programs designed to help you keep your home — but you have to take the first step.
Published by AuctionBlock.org, a mission-driven company dedicated to foreclosure prevention for vulnerable families. Based in Corvallis, Oregon.
Last updated: March 21, 2026