Utah Circuit Breaker and Indigent Abatement Programs

Quick Facts

• What they do: Utah’s circuit breaker credit and indigent abatement programs lower property taxes on primary residences for low-income seniors and disabled homeowners. Renters can receive a refund credit equal to a portion of rent considered property taxes.
• Benefit size: The 2024 circuit breaker credit ranges from $199 to $1,185 based on household income. The indigent abatement reduces property taxes by half or up to $1,011, whichever is less. Counties may also offer deferral to postpone paying the remaining balance.
• Application timing: Apply annually with your county by September 1 using Utah State Tax Commission forms TC-90CY (circuit breaker for homeowners), TC-90CB (circuit breaker for renters), or TC-90IP (indigent abatement). Supporting documents must accompany the application.
• Why it matters: Utah’s property values have surged, pushing taxes higher. These programs help seniors stay in their homes by offsetting the tax burden and, for renters, providing a cash refund that arrives before the holiday season.

Program Overview

Utah Code §59-2-1202 through §59-2-1210 authorize county-level property tax relief for seniors and disabled homeowners. The state sets income limits and forms, but counties administer applications and determine final awards. Applicants may qualify for one or more relief options:

1. Circuit Breaker Credit (Homeowners): Provides a refundable credit applied to property tax bills. Seniors aged 66+ (or surviving spouses) with household income below $41,424 (2024 limit) can receive credits scaled to income.
2. Circuit Breaker Credit (Renters): Renters aged 66+ may receive a refund based on 10% of annual rent paid, assuming that portion represents property taxes.
3. Indigent Abatement: Counties may abate up to half of the tax due (maximum $1,011) for homeowners who meet income limits and demonstrate hardship. Applicants can also request deferral of remaining taxes until the property is sold or the owner passes away.

Eligibility Details

Residency and Occupancy

• Must be a Utah resident for the entire year preceding application and occupy the home for at least 10 months.
• Applicants cannot receive relief on more than one property. Vacation homes and rental properties are ineligible.
• Renters must occupy a Utah residence for at least 10 months and pay rent on a building subject to property taxes. Units owned by tax-exempt entities do not qualify.

Age and Status Requirements

• Circuit breaker requires applicants to be age 66 or older by December 31 of the previous year or a surviving spouse.
• Indigent abatement is available to applicants age 65 or older, or to homeowners with disabilities, including veterans with 10% or greater service-connected disability. Counties may consider younger applicants facing extreme hardship.

Income Limits

• Household income includes the applicant’s income plus the income of a spouse or any person claimed as a dependent. Count Social Security, pensions, annuities, interest, dividends, wages, and rental income. Exclude welfare payments, Veterans Affairs disability benefits, and certain medical reimbursements.
• For 2024, the income cap is $41,424. Income brackets within the cap determine the credit amount.

Asset Considerations

• Counties review assets when evaluating indigent abatement. Applicants with substantial liquid assets may be directed to pay taxes or use deferral instead of abatement.
• Home equity is not counted, but multiple properties or high-value investments can disqualify applicants.

Benefit Calculation

Circuit Breaker (Homeowners)

• Credits range from $1,185 for households with income up to $13,706 to $199 for those near the $41,424 limit.
• The credit applies directly to the tax bill, reducing the amount due in November. If taxes are escrowed, provide the approval notice to your mortgage servicer.

Circuit Breaker (Renters)

• Credit equals 10% of annual rent paid, capped at the same amounts as homeowners. For example, if you pay $12,000 in rent, the credit base is $1,200. Based on income, your credit might be between $199 and $1,185.
• Counties issue the renter credit as a refund check, usually in October or November.

Indigent Abatement

• Counties may abate up to 50% of taxes due or $1,011, whichever is less. Applicants must show inability to pay due to fixed income, illness, or other hardship.
• Some counties combine abatement with deferral, deferring the remaining balance at 6% interest until the property transfers.

Application Process

1. Collect documentation: Proof of age (driver’s license, birth certificate), Utah residency (utility bills, voter registration), income documentation (tax returns, SSA-1099, pension statements), and proof of disability if applicable.
2. Obtain forms: Download TC-90CY (homeowners) or TC-90CB (renters) for circuit breaker claims, and TC-90IP for indigent abatement from the Utah State Tax Commission’s website or pick up at the county treasurer’s office.
3. Complete forms thoroughly: Provide property parcel numbers, income details, rent amounts, and household member information. Attach schedules for medical expenses or disability status if claiming additional deductions.
4. Submit to county office: File with your county treasurer or auditor by September 1. Many counties accept applications in person, by mail, or via secure email upload. Request a stamped copy for your records.
5. Attend hearings if required: Some counties hold hearings to review indigent abatement requests. Be prepared to explain hardships and provide supporting documents such as medical bills or bank statements.
6. Receive decision: Counties notify applicants by mail. Approved credits appear on the tax notice or as refund checks for renters. Abatement approvals are reflected on the November bill.
7. Renew annually: There is no automatic renewal. Submit new applications each year with updated income data.

Documentation Checklist

• State-issued photo ID with current address
• Social Security numbers for all household members
• Federal and Utah tax returns (or Statement of Non-Filing)
• SSA-1099, pension statements, 1099-R, W-2s
• Rent receipts or landlord certification for renters
• Medical expense receipts (for hardship claims)
• Proof of disability (VA rating letter, physician certification)
• Mortgage statement or property tax notice

Coordination with Other Programs

• Property Tax Deferral: Available to seniors with incomes under $81,000. Deferral postpones payment until the property is sold. Combine with indigent abatement if partial relief still leaves a balance you cannot pay.
• Home Energy Assistance Target (HEAT) Program: Utah’s LIHEAP equivalent provides winter utility credits. Receiving HEAT helps reduce overall housing costs, freeing funds for property taxes.
• Local senior centers: Offer tax counseling, assistance completing forms, and notary services for affidavits required by counties.
• Reverse mortgages: Some seniors use a reverse mortgage line of credit to cover remaining taxes after circuit breaker credit. Evaluate fees carefully and consult a HUD-approved counselor before proceeding.

Strategic Tips

• Apply early in the season: Submitting by early summer gives counties time to request missing documents before the September 1 deadline.
• Keep rent receipts: Renters should maintain a monthly log and request a landlord-signed statement in August verifying total rent paid.
• Track medical expenses: Counties may consider high medical costs when deciding indigent abatements. Keep organized records to demonstrate hardship.
• Verify tax notices: After approval, confirm that the credit or abatement is reflected on your November bill. If escrowed, send documentation to your lender to adjust payments.
• Consider deferral for large balances: If abatement and credit are insufficient, request deferral to prevent delinquency. Interest accrues at 6%, but no payment is due until the property transfers.

Example Scenarios

1. Homeowner on fixed income: Mr. and Mrs. Olsen, both 70, earn $24,000 annually in Social Security. They qualify for a $900 circuit breaker credit and a $500 indigent abatement because of high prescription costs. Their $2,100 tax bill drops to $700, which they budget across two payments.
2. Senior renter: Ms. Chavez, 68, pays $900 per month in rent in Salt Lake City. Her annual rent is $10,800. With income of $18,000, she receives a circuit breaker renter credit of about $850, arriving as a check in November. She uses the funds for winter heating bills.
3. Disabled veteran homeowner: Sergeant Davis, age 62 with a 30% service-connected disability, faces a $1,800 tax bill on his Utah County home. His income is $30,000. He qualifies for a $500 circuit breaker credit and receives a $900 indigent abatement after submitting medical bills, reducing his bill to $400.

Common Mistakes to Avoid

• Missing the September 1 deadline: Counties rarely grant extensions. File early to avoid disqualification.
• Incomplete income reporting: Forgetting to include pension distributions or interest income triggers denial. Provide full documentation for each household member.
• Lack of landlord verification: Renters must provide proof that rent was paid on taxable property. Obtain a signed statement from the landlord annually.
• Not renewing each year: Credits and abatements do not automatically roll over. Reapply annually even if income and living situation are unchanged.
• Ignoring asset review: For indigent abatement, counties scrutinize bank accounts. Be prepared to explain savings or investments and demonstrate why relief is necessary.

Frequently Asked Questions

Can I receive both circuit breaker and indigent abatement? Yes. Many homeowners apply for the circuit breaker credit and request indigent abatement to reduce the remaining balance. Counties may approve both if income limits are met.

Do I need to pay taxes before receiving the credit? No. Credits are applied to the November tax notice. If you have a mortgage escrow, your lender will adjust payments once they receive the updated notice.

What if I move to a different county? You must apply in the new county. Credits do not transfer automatically. File a new application with updated income information.

Are reverse mortgages considered income? Withdrawals from a reverse mortgage are not treated as income, but counties may review the available credit line when determining indigent abatement.

How long can deferral last? Deferred taxes plus interest become due when the property is sold or the owner dies. Heirs can pay the balance to retain the home.

Additional Resources

• Utah State Tax Commission Property Tax Relief: https://tax.utah.gov/taxes/property/relief
• Form TC-90CY (homeowners) and TC-90CB (renters): https://tax.utah.gov/forms
• County treasurer directory: https://tax.utah.gov/forms/current/county_treasurers.pdf
• Utah HEAT (LIHEAP) Program: https://www.heatutah.org/
• Utah Division of Aging and Adult Services: https://daas.utah.gov/

Utah’s property tax relief programs require annual paperwork but deliver meaningful savings. By applying early, maintaining organized financial records, and coordinating with county staff, seniors can keep property taxes manageable even as home values climb.