Homestead Exemption

A homestead exemption is a legal provision that can reduce the assessed value of a homeowner’s primary residence for property tax purposes. The purpose of the homestead exemption is to protect homeowners from property taxes, make home ownership more affordable, and help prevent individuals from losing their homes due to inability to pay property taxes. 

The homestead exemption allows homeowners to exclude a certain portion of the assessed value of their primary residence from taxation, thereby reducing the taxable value of the property. Homeowners must meet certain criteria to qualify for the homestead exemption, which can include but are not limited to occupying the property as their primary residence, being a legal resident of the jurisdiction, and meeting certain age or income requirements. 

Specifics of homestead exemptions vary by jurisdiction, which may provide a flat dollar amount exemption, a percentage-based exemption, or some combination of the two. Typically, a homeowner needs to apply for the exemption with their local tax assessor, and may need to provide proof of eligibility.