Tax Deferral Program

Any person who owns and occupies property in the Town of Madison as a primary residence may be entitled to defer payment of the real estate taxes if they meet the qualifications of the program.

Eligibility
  • Property owner is 65 years or older at the end of the previous year.
  • Under 65 and eligible in accordance with federal regulations to receive permanent total disability benefit under Social Security, Railroad retirement and any government disability retirement plan.
  • To be eligible, applicant's mortgages, home equity and other liens cannot exceed the assessed value of their homes.
Income Qualifications
  • The applicants qualifying annual income is defined as all forms of income without exception. Income shall include adjusted gross income as defined in the Internal Revenue Code plus Social Security, Railroad Retirement, income from other tax exempt retirement and annuity sources and income from tax exempt bonds.
  • If married, qualifying annual income of husband and wife must be combined.
  • Maximum income is currently $63,660.
Tax Relief
  • Qualifying residents may defer 100% of the real estate tax, but cannot exceed $8,000 in any one-tax year.
  • Tax deferrals will be secured by a lien in the full amount. Full or partial repayments may be made at any time.
  • The Board of Finance sets the interest rate for amounts deferred annually. The current interest rate is 1%.
Application Procedure
  • Must complete application form for the State's Elderly and Totally Disabled Homeowner tax credit program.
  • Must also complete application form for the Town of Madison's Senior and Disabled Tax Relief Program.
  • Must complete Town of Madison application for the Tax Deferral Program.
  • Apply between February 1st and May 15th annually.
  • Program Administrator is the Assessor's Office and appointments can be made by calling 245-5652.
Disclaimer
The Town of Madison offers this program as a service for its senior citizens and handicapped residents. The advisability of this or any similar program depends on your individual financial situation and market values that are not entirely predictable. Please discuss this option with your financial advisor or other trusted sources before making a final decision