How to Claim the Homestead Exemption and Lower Your Taxes

How to Claim the Homestead Exemption and Lower Your Taxes gives you a clear, step-by-step way to understand what drives your bill, what to verify on your notice, and what to do if the numbers look off.

Claiming a homestead exemption can cut your property tax bill immediately. Simply put, a homestead exemption is a tax break for your primary residence: it exempts a chunk of your home’s value from taxation. For example, if your home is assessed at $200,000 and you get a $50,000 exemption, you’ll pay taxes on only $150,000. That can shave hundreds of dollars off your annual tax bill. Most states have a homestead exemption; rules vary widely 12. Some automatically apply it when you buy a house; others require you to file a form. Here’s what you need to know:

What Is a Homestead Exemption?

A homestead exemption “shelters a certain dollar amount or percentage of home value from property taxes”. Only a primary residence qualifies – rental or vacation homes do not. The exemption amount may be a flat dollar reduction or a percentage of value. For instance:

• Fixed Amount: California exempts the first $7,000 of home value

7 . Florida provides up to $50,000. Texas and others often have fixed credits too.

• Percentage: Some northern states use a percentage method. E.g., if your state exempts 10% of your

home’s value and your home is assessed at $300,000, you’d save taxes on $30,000 of that. It’s like pre-paying a portion of your property taxes each year. The key advantage is equity protection: as your home’s market value rises, only the non-exempt portion (e.g. above $50k) gets taxed. Seniors, disabled homeowners, or veterans often see extra exemption amounts in addition to the basic homestead credit.

Who Qualifies?

Eligibility typically requires: - Ownership and Residency: You must own and actually live in the home as your main residence. If you own multiple properties, only one gets the homestead benefit. - Filing Status: Usually one exemption per household. If married, both spouses should be on the deed or one must legally own. - Age or Disability (often extra benefits): Many states give seniors (often 65+), blind or disabled persons larger exemptions or tax freezes. For example, Florida provides an additional $50,000 credit to seniors or disabled veterans. - Income Limits: A few states impose income caps for the exemption, but most allow all incomes to claim it.

If you just bought your home and use it as your address, you likely qualify. Check if your state requires a residency period (some might require living in the home by a certain date of the tax year). 3 How to File Your Claim. Find the Right Form: Each county tax assessor has its own forms. Search for “[Your County] homestead exemption form” or visit your assessor’s website. 2. Gather Documents: Commonly required documents include proof of identity (ID, social security), proof of ownership (deed or title), and proof of residency (driver’s license or utility bills with the property address) 7. 3. Submit on Time: Many areas have a firm deadline. For example, California requires filing no later

than February 15 after purchase to get the full $7,000 credit for that tax year. If you miss it, you might still get a partial credit or have to wait until next year. Florida’s deadline is March 1 for the upcoming tax year. Always check your local dates. 4. Renew or Update: Some jurisdictions automatically renew your exemption year to year. Others require you to re-certify or notify them if your situation changes (sale, address change, etc.). Always keep an eye on any notices from the tax office. State Examples: - In Florida, the Department of Revenue reminds homeowners that the homestead exemption can save thousands over time. It “reduces a property’s taxable value by as much as $50,000” for

a qualifying primary home. That means a $300,000 home would only be taxed on $250,000 of value. - In California, the constitution guarantees a $7,000 exemption for owner-occupied homes. Even though $7k sounds modest, it represents immediate tax savings and protects the base year value under Prop. Plus, Californians over 65 can apply for additional assessed value freezes on their homestead. Lowering Your Tax Bill Once you’ve claimed your homestead exemption, your taxes will automatically be calculated on the lowered value each year. It’s one of the simplest ways to lower your property tax. In some cases, coupled with other exemptions (like veteran or senior credits), the savings can be substantial.

If you haven’t done so, check with your assessor today. You could see your next tax bill drop significantly without any complex steps – just a simple form. ProptaxHelper.com has state-by-state guides and application links, making it easy to find exactly what you need. Reducing your tax base even by a few thousand dollars means real savings every year. Don’t miss out on this tax break available to homeowners like you!

Next steps

• Use the Property Tax Estimator to sanity-check your bill.
• If something looks off, run a quick Appeal Savings scenario.
• Scan the Articles list for related topics like exemptions, deadlines, and escrow planning.