This is a plan that allows those 65 years of age or older and on fixed incomes, to not pay property taxes annually. Please note that this plan does not exempt them from having to pay property taxes; it simply defers payment. The State of Illinois will actually pay the property taxes due each year. Upon the death of the property owner or sale of the property, the balance of ALL taxes paid by the state must be satisfied out of the property's equity at an interest rate of 6.0 percent.