Vella Pass Property Tax to Give Relief to Seniors

ROCKFORD, Ill. – State Rep. Dave Vella, D-Rockford, passed legislation aimed at expanding property tax relief for Illinois’ older residents on fixed income. This bill provides new options for paying delinquent taxes and increases the income eligibility limits for senior-focused tax relief programs.

“Rising property taxes shouldn’t force seniors or families out of the home they’ve worked their whole lives to afford,” said Vella. “This bill will give them peace of mind, knowing they can stay rooted in their communities without the fear of being priced out.”

Under SB 642, the maximum household income limit for the Low-Income Senior Citizens Assessment Freeze Homestead Exemption will increase to $75,000 in tax year 2026, $77,000 in tax year 2027, and $79,000 beginning in tax year 2028 and thereafter.

This bill grants counties new administrative flexibility:
● Unpaid first-installment taxes for the 2025 tax year will be deemed delinquent after April 1, 2026 and accrue interest at a rate of 0.75% per month, giving homeowners more time and transparency in meeting their tax obligations.
● For seniors participating in the Senior Citizens Real Estate Tax Deferral Program, counties may now establish payment plans and waive interest penalties when the plan’s terms are met. This is a step intended to ease burdens on older homeowners who may face unexpected financial hardship.

“No one should lose their home because the cost of living outpaced their income. This measure brings us one step closer to fairness for homeowners who’ve spent time investing in their communities,” said Vella. “Illinois families are working harder than ever to make ends meet, and this bill helps keep property taxes more manageable for our most vulnerable citizens.”