Definition
A tax benefit available in many states that reduces the taxable value of your primary residence, resulting in lower property taxes. How much it saves depends on the state and county.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Homestead exemptions are available to homeowners who occupy their homes as primary residences and vary significantly by state. Some states require formal application while others are automatic, and exemptions may have age, income, or other eligibility requirements. Homestead exemptions can provide significant tax savings for homeowners.
Pro Tip
Check your state's homestead exemption eligibility and application deadline. Missing deadlines costs you a year of savings.
Example
The new homeowner filed for the state's homestead exemption, which reduced the property's taxable assessed value from $400,000 to $350,000, saving approximately $1,200 annually in property taxes.