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Tax Deferral Program

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1. What is a Tax Deferral program?

A Tax Deferral program allows qualified taxpayers to postpone the payment of a specified amount of their local property taxes for any given tax year.

2. Who is eligible for the Tax Deferral Program?

The following people are eligible for the Tax Deferral Program:

• A resident taxpayer or their spouse, who is age 65 or older at the close of the preceding calendar year


• A resident taxpayer who is eligible to receive permanent total disability benefits under social security or other qualified government disability plans and is currently receiving a disability exemption in Norwalk


• A surviving spouse who is age 60 or older whose spouse qualified under this program at the time of their death

3. How do I know which local program is right for me?

Each person will have to consider the individual financial impact of the tax credit and tax deferral program. The tax credit is an abatement of taxes and does not have to be paid back. The tax deferral, however, allows most residents to reduce their tax obligation by a significant amount, freeing up their money when they need it most.

4. How long must the applicant have been a Norwalk taxpayer to qualify?

The applicant must have been a taxpayer of the City of Norwalk and have paid taxes for at least 12 months prior to application for tax deferral.

5. What if I owe delinquent taxes?

No tax deferral will be given to any person who owes delinquent taxes, fees, assessments, or other charges to the City of Norwalk.

6. What property is eligible for the Norwalk Tax Deferral Program?

The legal domicile and principal, permanent residence that is occupied by the applicant for more than 200 days of each year is eligible for this program. The market value of the real property for which the tax deferral is claimed may not exceed $715,000, as determined by the most current property records of the tax assessor.

7. Is there a qualifying income limit?

Yes. The qualifying income limit is $45,000.

8. Are there any other requirements or limitations?

Yes. There are two notable limitations. First, the applicant must, if eligible, apply for and receive the state-reimbursed Homeowner Property Tax Relief Program. Second, applicants cannot receive both the local tax credit and the tax deferral for the same grant list year. In other words, for each year applicants must decide whether it is in the their best interests to apply for either the tax credit or the tax deferral program.

9. What is the period for filing an application?

An eligible resident must file with the tax assessor's office between February 1 to May 15 prior to each fiscal year. Original application forms will be supplied by the tax assessor's office each year.

10. What documentation do I need?

A copy of the applicant's federal tax return for the previous calendar year, written documentation of all other income, and all necessary documents required by the tax assessor.

11. Is the information that I file open to the public?

No. Documents, such as financial records, are kept in strict confidence and are not open to the public, in accordance with the Freedom of Information Act guidelines.

12. How much of my taxes can I defer under this program?

For each grand list year, you are allowed to defer any amount of property tax up to 50% of the tax that would otherwise be due, up to $4,000. The minimum amount of deferral is equal to the amount of tax credit allowed under section103-12. The tax deferral, combined with all other tax credits and exemptions, may not exceed 75% of the tax that would otherwise be due. The tax assessor's office will advise the applicant of the maximum tax deferral amount if the 75% limit is exceeded.

13. If I decide to defer my taxes, will the city put a lien on my property?

Yes. The applicant must enter into a written agreement with the city providing for payment to the city of the tax deferral. A separate agreement is required for each grand list year. The amount of the deferral, and the rate of interest, will be recorded in the Norwalk Land Records, which constitutes a priority lien against the property.

14. So, I have to pay back all of my deferred taxes?

Yes. All deferred taxes must be paid back to the city, with interest, upon the death of the applicant, the conveyance of the property, or at any prior time that the applicant wishes to repay the benefit.

15. What interest rate will the city charge?

All deferred taxes are subject to an interest rate equal to the city's most recent annual bond issue, rounded to the nearest half perfect, plus an additional 1.5%.

16. What if I own the property with others who are not eligible?

You will still be eligible for tax deferral on the portion of the property that you own, based on your percentage of ownership.

17. What if I own a multi-family property?

Again, you may still qualify for tax deferral, based on your occupancy of the property. The assessor will assist you in determining the maximum deferral.

18. Am I eligible for tax relief if I receive credits or exemptions in another municipality or state?

No. If you have applied for any tax relief in another jurisdiction, you are stating that it is your legal residence. Therefore, you cannot file in both Norwalk and that jurisdiction.

We encourage all property owners who are interested in the program and believe they are eligible to contact the tax assessor's office at (203) 854-7888 to discuss the tax deferral program with our staff. It is out hope that we can assist you in attaining any and all property tax relief that is available to you and for which you qualify. If there is any question at all that you may have, we encourage you to discuss it with us. Our goal is to help taxpayers remain in their homes and in Norwalk.