Seniors Property Tax Deferral Program

The Government of Alberta offers the Seniors Property Tax Deferral Program, providing eligible senior homeowners with a way to defer all or part of their municipal property taxes with a low-interest home equity loan.

If you qualify, the Seniors Property Tax Deferral Program will pay your residential property taxes directly to the municipality on your behalf.

Eligibility

Eligibility is not based on your income.

To be eligible for this program, you must:

• be 65 years of age or older (only one spouse/partner needs to be at least 65);
• be an Alberta resident, having lived in the province for at least 3 months;
• own a residential property in Alberta and the home must be your primary residence (the place where you live most of the time); and
• have a minimum of 25% equity in your home to allow the government to secure the loan and ensure repayment when the loan is due.

Only residential properties are eligible for the program, although the following property types may also be considered:

• mobile and manufactured homes on residential property owned by the senior.
• residential portions of farmland. 
• residential portions of commercial property.

If there are outstanding municipal property tax amounts owed from previous years, you can still apply for a loan, as long as you have a minimum of 25% equity in your home.

Loan Information

The current interest rate is set at 4.7%. This is reviewed, and may be adjusted, every 6 months in April and October. Simple interest charges start on the date that the program pays your property taxes to the municipality on your behalf, and end when the loan is repaid in full. The program will register a caveat against your land title certificate to secure the loan you receive.

Monthly re-payments are not required. You can choose to repay the loan at any time, but it will automatically become due when you sell your home, are no longer a registered owner or if the home is no longer your primary residence. 

Application Process

You can apply at any time of the year. However, you must apply at least 30 days before the municipal property tax deadline to avoid penalties, and allow enough time for the application to be processed and for the tax payment to be made on your behalf to your municipality.

You will be responsible for any late charges incurred by missing your municipal property tax deadline. You may choose to pay those late charges directly to your municipality or add them to the dollar amount of your loan application.

You can defer your taxes for up to 10 years without having to submit an application each year.

For more information and to apply for the program, visit the Alberta Seniors Property Tax Deferral Program webpage.