Lilly-Supported Legislation Expands Property Tax Break for Seniors on Fixed Incomes

SPRINGFIELD, Ill. – State Rep. Camille Y. Lilly, D-Chicago, worked to expand property tax benefits for seniors on fixed incomes to support their financial stability and help them age with dignity.

“We want our seniors to fully enjoy the rewards of what they’ve worked for,” Lilly said. “They can’t do that if they’re struggling with rising costs simply because their income now exceeds the limit for the senior property tax freeze. That’s why we’re raising the income threshold for both the freeze and the property tax deferral—to give them greater peace of mind.”

Senate Bill 642 increases the income threshold for seniors, allowing more individuals to qualify. The cap will rise from $65,000 to $75,000 in 2026, $77,000 in 2027, and $79,000 in 2028. Additionally, SB 642 establishes a property tax repayment program, giving counties the ability to offer structured payment plans for homeowners with outstanding taxes. For the 2025 tax year, interest on unpaid taxes will accrue at a reduced rate of 0.75% per month starting April 1, 2026, providing seniors with greater flexibility and time to meet their obligations without facing steep penalties.

“Our mission is to ensure all seniors have access to the support they need to live thriving, fulfilling lives,” Lilly said. “This brings us one step closer to achieving that goal across every aspect of their well-being.”