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What to Know About the Homestead Tax Exemption

Each January, homeowners are prompted to file paperwork to receive a homeowner’s exemption tax break.

What is the homestead exemption?

A homestead exemption helps homeowners save on taxes on their primary place of residence. Essentially, the exemption removes part of the value of your property from taxation so that it lowers your taxes.

To qualify, a homeowner must use the home as his or her principal residence and must be occupied by an individual and not a business or corporation. Different regulations may apply for those 65 or older or disabled.

What different types of homestead exemptions are there?

School exemptions: All residence homeowners are allowed a $25,000 exemption from their home’s value for school taxes.

County taxes:  If a county collects a special tax for farm-to-market roads or flood control, a residence homestead is allowed to receive a $3,000 exemption for this tax.

65+ older and disabled exemptions: Individuals age 65 or older or disabled residence homestead owners qualify for a $10,000 homestead exemption for school taxes, in addition to the $25,000 exemption for all homeowners. If the owner qualifies for both the $10,000 exemption for age 65 or older homeowners and the $10,000 exemption for disabled homeowners, the owner must choose one or the other for school taxes. The owner cannot receive both exemptions.

For more types, click here.

Why should I file for this tax exemption?

Well, if you like saving money, then this should definitely be something you want to do. Homeowners can received up to a $25,000 exemption depending on what type of homestead exemption your house qualifies for.

For example, if your home is appraised at $100,000, and you qualify for a $25,000 exemption (this is the amount mandated for school districts), you will pay school taxes on the home as if the home was worth only $75,000.

How do you file?

Easy! All you need to do is fill out a Residential Homestead Exemption application between January 1st and April 30th. There is no application fee.

Have any questions? Feel free to reach out to us on our contact page.

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