If you’re 65 or older in Illinois and your household income has crept above $65,000, there’s good news: the state just raised the income limit for the Senior Freeze property tax exemption, and it’s about to keep rising for the next two years. Here’s what actually changed, who qualifies now, and exactly how to apply before you miss a deadline.
1. What Is the Illinois Senior Freeze Exemption?
Its official name is the Low-Income Senior Citizens Assessment Freeze Homestead Exemption, usually shortened to SCAFHE or simply “Senior Freeze.” Despite the name, it does not freeze your tax bill and it does not lock your local tax rate. What it actually freezes is your home’s equalized assessed value (EAV) at a base year, so future increases in your property’s market value don’t automatically increase the assessed value your tax bill is calculated from.
The program is administered locally by each county’s Chief County Assessment Office, following rules set by the Illinois Department of Revenue. That means the application process can look slightly different from one county to the next, even though the eligibility rules are set at the state level.
2. What Changed for 2026 — The New Income Limit
On December 12, 2025, the Illinois governor signed Senate Bill 642 into law as Public Act 104-0452. The law raises the Senior Freeze household income limit in stages:
- $75,000 for taxable year 2026 (payable in 2027)
- $77,000 for taxable year 2027 (payable in 2028)
- $79,000 for taxable year 2028 and every year after
That’s a jump from the previous $65,000 cap — a meaningful increase that brings a lot of middle-income seniors back into eligibility after being phased out in recent years as Social Security cost-of-living adjustments and pension income pushed their household totals over the old limit.
3. Who Qualifies
Age requirement
You (or your spouse, if you own the home jointly) must be 65 or older during the qualifying assessment year. If you turn 65 partway through the year, you’re generally still eligible for that year.
Ownership and residency
The property must be your principal residence, and you must have owned and occupied it as of January 1 of both the “base year” (the year your EAV gets frozen at) and the current application year. Vacation homes and rental properties do not qualify.
Household income
This is where people most often get tripped up: the limit applies to total household income, not just the applicant’s income. If a spouse, adult child, or other relative lives in the home and contributes to household income, that income generally counts toward the cap too.
What counts as “household income”
Illinois counts most income sources, including:
- Social Security benefits (including the portion that isn’t taxable federally)
- Pension and retirement account distributions
- Wages and self-employment income
- Interest, dividends, and other investment income
- Rental income
4. How Much Can You Actually Save — A Worked Example
Because this is an assessed-value freeze rather than a flat-dollar credit, your actual savings depend on your local tax rate and how much your home’s value would otherwise have risen. Here’s a simplified example of how it plays out over a few years:
| Year | Market-driven EAV (without freeze) | Frozen EAV (with Senior Freeze) | Approx. tax rate | Estimated annual savings |
|---|---|---|---|---|
| Base year | $60,000 | $60,000 | 8.5% | $0 (starting point) |
| Year 2 | $63,000 | $60,000 (frozen) | 8.5% | ≈ $255 |
| Year 3 | $66,500 | $60,000 (frozen) | 8.5% | ≈ $553 |
| Year 5 | $74,000 | $60,000 (frozen) | 8.5% | ≈ $1,190 |
Notice the pattern: the longer you stay enrolled without your assessed value resetting, the bigger the gap grows between what you’d otherwise owe and what you actually pay. This is why filing early and continuously, rather than starting a few years into retirement, makes a real difference over time.
5. How to Apply — Form PTAX-340
Unlike a one-time exemption, the Senior Freeze must be filed every single year to stay in effect. Missing a renewal doesn’t just pause your benefit — it can reset your frozen EAV to whatever the current market value is when you reapply.
- Where to get the form: Form PTAX-340 is available through your county’s Chief County Assessment Office or its website; some counties also mail renewal forms automatically to prior-year recipients.
- Documentation needed: proof of age (driver’s license or birth certificate), proof of total household income (tax returns, Social Security benefit statements, 1099s), and proof that the home is your principal residence.
- Deadlines: filing deadlines are set by each county and typically fall in the spring or summer; check with your county assessor’s office directly, since missing the window can mean waiting until the next assessment cycle.
6. Illinois Senior Freeze vs. Other Illinois Senior Exemptions
Don’t confuse the Senior Freeze with the regular Senior Citizens Homestead Exemption, which is a separate, non-income-based exemption available to any homeowner 65 or older, regardless of household income. The good news is these two exemptions are not mutually exclusive — most eligible seniors in Illinois can claim both at the same time, which further reduces their taxable EAV on top of the freeze.
7. FAQ
Does the freeze ever expire or need to be reapplied?
Yes — you must file a renewal application every year. It is not a set-it-and-forget-it exemption.
What if my income goes over the limit in a later year?
If your household income exceeds the current year’s cap, you won’t qualify for the freeze that year, and your assessed value will typically reset to current market value going forward. You can reapply in a future year if your income drops back under the limit, but you’ll start a new base year.
Does this apply to condos and mobile homes too?
Yes, as long as the property is your principal residence and you meet the ownership, age, and income requirements. Manufactured/mobile homes taxed under the Mobile Home Local Services Tax Act follow separate rules, so check with your county assessor.
What happens to the freeze if I sell my home?
The exemption does not transfer to a new owner or to a new property you purchase. If you move, you’d need to reapply and establish a new base year at your new residence, assuming you still meet the eligibility requirements.
Bottom Line
The 2026 increase to $75,000 — with further step-ups to $77,000 and $79,000 through 2028 — means a lot more Illinois seniors qualify for the Senior Freeze than in past years. Because the benefit compounds the longer you stay enrolled, and because it must be renewed annually, the best move is to check your eligibility now, gather your income documentation, and file Form PTAX-340 with your county assessor before the local deadline.