What is the Property Tax Assessment Freeze and How Can it Benefit Historic Homeowners?

Kelsey Munson on May 15, 2025

Renovating a historic home can be an exciting undertaking, giving homeowners the chance to showcase the character and craftsmanship of an era and foster a deep connection to the history of their home. But let’s be honest: it can also come with challenges, from navigating preservation requirements to managing costs. Fortunately, there’s a financial incentive that can make restoration more affordable: the Property Tax Assessment Freeze. This program helps homeowners invest in historic properties without an immediate tax hike, allowing them to focus on bringing their homes back to life.

Edward Twohey, principal at BBA Architects, BBA Senior Associate Jack Callahan, and architectural historian Susan Benjamin of Benjamin Historic Certifications have guided many homeowners through this process. They break down how the program works, the necessary qualifications, and what to expect when undertaking a historic renovation.

What is the Property Tax Assessment Freeze?

At its core, the Property Tax Assessment Freeze is designed to ease the financial burden on homeowners restoring historic properties. Once a renovation is complete, the home’s assessed value is frozen at its pre-renovation level for eight years— meaning property taxes don’t immediately jump despite the home’s increased market value. After the freeze period, the assessment gradually increases over four years until it reaches the current market rate.

Susan Benjamin explains it simply: “Once your rehab work is complete, the assessed value of your property is frozen at the level it was when your rehab began. It remains frozen for eight years, then your assessed value goes up in quarterly increments until, in year twelve, it reaches the level it would have been without the freeze.”

For homeowners investing heavily in restoration, this can translate to substantial tax savings over the course of those 12 years, making ambitious projects more financially feasible.

Which Properties Qualify?

Not every historic home automatically qualifies for the program. As Jack Callahan explains, the property must be a certified historic structure, which means it needs to fall under one of the following designations: individually listed on the National Register of Historic Places, located within a National Register Historic District, or recognized as a local landmark in a community with an approved preservation ordinance.

Additionally, the property must be owner-occupied and used as a single-family home, condominium, cooperative, or a residential building with up to six units, as long as the owner resides in one of them.

For those who own older homes but haven’t pursued historic designation, there’s still a pathway to qualification. “If a building is not already listed under one of these designations, we nominate it to the National Register,” Benjamin explains. “Qualification is usually based on architectural significance. If a home is an excellent example of a particular style, possesses high artistic value and historic details, or was designed by a well-known architect, we use these factors for qualification.”

The program also requires that renovations be substantial, meaning homeowners must spend at least 25% of the property’s assessed fair market value on rehabilitation within a 24-month period. “This is the assessed value, not to be confused with the sale price,” Benjamin cautions. This threshold was recently expanded to include money spent on additions and new construction, which, as Benjamin points out, “wasn’t always the case. This recent change opens the door to many more homeowners who would like to take advantage of the Property Tax Assessment Freeze.”

What Restrictions or Guidelines Apply?

Because this program is meant to protect the historic character of homes, renovations must comply with the Secretary of the Interior’s Standards for Rehabilitation. These guidelines ensure that restoration work preserves key architectural elements while allowing for necessary updates.

“These nationally-established preservation guidelines apply to the exterior visible from the public way to interior primary spaces such as foyers, living rooms, and dining rooms,” Benjamin explains. “Special features like staircases, fireplaces, and historic trim are protected, along with quality materials like quarter-sawn oak floors and historic paneling. But there is free rein on the remodeling of kitchens and bathrooms.”

This means homeowners might encounter limitations when making changes to certain areas of the home. Callahan notes, “For instance, a homeowner might want to remove a non-functional historic fireplace, but the state may require it to remain if it contributes to the character of the home.”

To ensure compliance, the program requires a review process conducted by the state’s Historic Preservation Office, including submitting design plans for approval before beginning work and providing proof of completed work to confirm it meets program requirements. While this might sound bureaucratic, Callahan reassures homeowners that it can run concurrently with standard design and permitting tracks, minimizing delays. That said, preservation experts strongly recommend working with someone who understands the process and establishing qualifications before beginning work if at all possible.

“We counsel our clients to work with a consultant who has a relationship with the state review officials and can more easily walk them and the design team through the process,” Edward Twohey advises. Having an experienced guide can help smooth the approval process, avoid missteps, and ensure projects meet historic preservation standards.

Creative Solutions to Design Challenges

Historic renovations often require creative problem-solving to balance modern needs with preservation requirements. Twohey recalls one particular challenge during the firm’s Greystone Revival project.

“We wanted to open up the back of a historic home, but an original dining room fireplace stood in the way. The owner wanted it gone, the state wanted it to stay,” he says. The solution? “We built a traditional firebox, reused the original mantle and mirror, and even sourced specific tile that matched the historic period of the home.” By relocating the fireplace within the same room rather than removing it, the project maintained the home’s character while creating a more functional layout.

Adapting historic homes to modern living often requires flexibility. Kitchens and rear entries, for example, are much larger in today’s homes than they were in the past. “When you’re trying to preserve the look of the historic pattern of the building, you have to do so by giving visual clues to what the historic look of the home was, even if you’re expanding space,” Twohey says.

Other creative solutions involve preserving the memory of historic features rather than the features themselves. “The state reviewers want the historic configuration, if it still exists, as well as significant features, to be clearly understood, even if the spaces now have very different functions than they were once designed for,” Twohey explains. This means that even if a homeowner removes a wall, they might leave molding patterns in the ceiling or a partial wall section to hint at the home’s original layout.

New elements added to historic homes must also integrate into the space, paying homage to the original aesthetic of the home, but do not necessarily have to be reproductions. When construction of a new stair was necessary in the Greystone Revival, BBA’s design was a nod to the past without being a carbon copy of the existing stair. Callahan notes, “It was important that both staircases look as though they might have existed at the same time, but we had the ability to update the staircase in look and orientation to work better in our overall design.”

Material Considerations

Working within the Tax Assessment Freeze guidelines can be an important factor when it comes to material choices. “You may have to recreate running trim profiles or plaster ornamentation. That can be a larger investment,” shares Twohey. “However, by doing so, you do ensure the authenticity of your work so the end product fits together.”

Not all costs associated with renovating a historic home are necessarily higher, though. “Some traditional techniques can cost less. A great example is window restoration. By choosing to restore an existing window, you’re adding high-quality modern materials back into what was already a very high-quality piece of craftsmanship, and restoring a look and feel that is often cost-prohibitive to recreate in a totally modern window,” Twohey shares. 

Benjamin stresses that while certain material costs might be higher when choosing to restore and renovate a historic home, the benefits are worth it. “With a historic house, you’re getting higher quality materials, such as early growth timber windows that are sturdy and have really stood the test of time. You’re rewarded for making this investment with a beautiful house of exceptional quality.”

Investing in the Future While Honoring the Past

For homeowners passionate about restoring and preserving history, the Property Tax Assessment Freeze offers a unique financial advantage. By keeping property taxes stable during and after major renovations, the program makes it easier to invest in maintaining a home’s architectural integrity.

Successfully navigating the program requires careful planning, collaboration with experienced professionals, and sometimes, a little creative problem-solving. With the right team in place, homeowners can strike the perfect balance between historic preservation and modern comfort, while enjoying significant tax savings along the way.

See a Selection of Our Projects that had a Property Tax Assessment Freeze

Greystone Revival

Adler Reimagined

Historic Landmark Greystone

Chicago Greystone

1880s Historic Queen Anne Concept