Oregon's Property Tax Deferral for Disabled and Senior Homeowners (ORS 311.668): The State Pays the County, Records a Lien, Repaid From Sale Proceeds, $70,000 Income Cap for 2026
Updated April 2026
Oregon's primary senior property tax mechanism is the Property Tax Deferral for Disabled and Senior Homeowners under ORS 311.668. There is no senior-specific exemption, the relief structure is purely a deferral. For homeowners age 62+ or disabled with household income at or below $70,000 for the 2026 program year (up from $60,000 in 2025), the Oregon Department of Revenue pays the homeowner's county property taxes on November 15 of each year. The deferred amount accrues interest at the state-set rate, and the Department records a lien on the property as a secured creditor. Repayment is triggered when the home is sold, transferred, or the homeowner's estate settles. Layered separately, Measure 50 (1997) caps year-over-year assessed value growth at 3% for all owner-occupied homesteads regardless of age, that's the universal protection structure.
Eligibility Under ORS 311.668
- Age 62 or older, OR disabled.
- Household income at or below $70,000 for 2026 (was $60,000 for 2025). Income includes all taxable and non-taxable income of the applicant(s) and spouse(s) residing in the home for the prior calendar year.
- Owner of the home as primary residence. The homeowner must have lived in the home as primary residence for at least 5 years.
- Net worth (excluding the home) below the program-specified limit.
- Property must be subject to property taxes and not have unpaid past-due taxes (program won't accept new applications with delinquent prior tax balances).
Application: file the deferral application (Form 150-490-015-1) with your county assessor by April 15. Late filings April 16 – December 1 are accepted with a fee. The state notifies you of approval and pays the county on November 15.
How the Lien Mechanic Works
The Oregon DOR functions as a security interest holder against your property for the deferred tax amount plus interest. When you sell the home or transfer it, the lien is paid from sale proceeds before you receive net cash. If you die holding the deferral, the estate must repay the lien before final settlement; heirs cannot inherit the home free of the lien.
Interest accrues at the state-set rate (typically 6% historically, but adjustable). Over a 10-year tenure with $4,000/year deferred and 6% interest compounding, the cumulative lien at sale could exceed $50,000-$60,000. For seniors planning to leave the home unencumbered to heirs, the deferral converts a recurring out-of-pocket cost into a future estate cost, the trade-off is genuinely individual. For seniors planning to sell or who don't prioritize estate value, the deferral can substantially preserve cash flow during retirement.
Measure 50: The Universal Cap That Protects Long-Tenure Seniors Implicitly
Oregon's Measure 50 (1997) caps year-over-year growth in maximum assessed value (MAV) at 3% for any owner-occupied primary residence regardless of age. The cap operates similarly to Michigan's Proposal A or Nevada's 3% residential cap, universal protection that especially benefits long-tenure homeowners (including seniors) who've held a home through significant appreciation. The cap pops on transfer; the next owner's tax base resets.
For Oregon seniors who don't qualify for the deferral (income above $70,000, or asset/net-worth disqualification), Measure 50 is the practical protection mechanism. It's not senior-specific, but its cumulative effect over a 15-20 year tenure is substantial in fast-appreciating Oregon counties.
Recertification Every Two Years
Once approved for the deferral, recertification is required every 2 years. The DOR sends a recertification form when it's time. Failure to recertify can result in the deferral being terminated, which means the senior must pay the full annual property tax going forward, plus the lien stays in place against accumulated deferred taxes plus interest until repaid from sale or estate.
Frequently Asked Questions
My Oregon income is $75,000. Am I above the senior deferral cap?
For the 2026 program year, yes, the cap is $70,000. At $75,000 you're above the threshold by $5,000. The cap rose from $60,000 in 2025 to $70,000 in 2026, so it may continue rising in future years; check the most recent DOR program page for current figures. There is no partial-deferral structure, eligibility is binary at the income test. Your protection mechanism without the deferral is Measure 50's 3% cap on year-over-year assessed value growth, which is universal and not income-tested.
If I take the Oregon deferral, can my heirs inherit the home and keep it?
They can inherit the home, but the lien must be paid off before final estate settlement. Heirs have a few options: pay off the lien from estate liquidity, refinance the home with a new mortgage that covers the lien amount, or sell the home to satisfy the lien. The Oregon DOR is a secured creditor in priority; heirs cannot keep the home free of the lien without repaying it. For seniors prioritizing leaving the home unencumbered, the deferral is structurally not a fit. For seniors prioritizing cash flow during retirement and willing to convert the cost to a future estate liability, it can be excellent.
I'm 65 in Oregon and my home's real market value jumped 18%. Will my taxes jump 18% too?
No, Measure 50 caps the year-over-year growth in your maximum assessed value (MAV) at 3% regardless of how much the real market value rises. So an 18% RMV jump translates to a 3% MAV jump, with property tax tracking the MAV not the RMV. The cap operates universally on owner-occupied homesteads (not just for seniors). It pops when the home transfers, the next owner's MAV resets to current. For long-tenure seniors, Measure 50 produces substantial cumulative benefit even without the senior-specific deferral. If you're also income-eligible for deferral, you can stack: Measure 50 caps MAV growth, and the deferral pays the (capped) bill for you with the lien.
