If you’re a homeowner, you might be leaving money on the table by not taking advantage of the Homestead Exemption. This property tax benefit can help reduce your taxable home value, potentially lowering your annual tax bill. Whether you’re a first-time homeowner or just looking to save some extra cash, here’s what you need to know.
What Is the Homestead Exemption?
The Homestead Exemption is a tax break that reduces the assessed value of your primary residence, which in turn lowers the amount of property taxes you owe. This exemption is designed to make homeownership more affordable, particularly for those on fixed incomes, like seniors and disabled homeowners.
Who Qualifies for the Homestead Exemption?
To qualify, you typically must:
✔️ Own and occupy the home as your primary residence
✔️ Meet any additional local or state requirements (such as age, income, or disability status)
Some jurisdictions offer additional exemptions for seniors, veterans, or disabled homeowners, providing even greater savings.
How Much Can You Save?
Savings vary by location, as property tax laws are determined at the state and local levels. In some areas, the exemption might reduce your home’s taxable value by a fixed dollar amount (e.g., $50,000), while others apply a percentage reduction. The exact savings depend on your local tax rate.
How to Apply for the Homestead Exemption
- Check your eligibility – Visit your local tax assessor’s office or website to review the requirements.
- Submit an application – Many places allow online applications, but some may require paper forms.
- Provide necessary documents – This might include proof of residency, a deed or mortgage statement, and ID.
- Meet deadlines – Most states have a deadline (often early in the year), so don’t miss out!
Do You Need to Reapply?
In some cases, once approved, your exemption renews automatically. However, if you move, refinance, or experience a change in ownership, you may need to reapply. Always check with your local tax office to ensure you’re still receiving the benefit.
Why You Shouldn’t Miss Out
The Homestead Exemption is one of the simplest ways to save money on property taxes. If you haven’t applied yet, take a few minutes to check your eligibility—you could be putting hundreds (or even thousands) of dollars back in your pocket!
Need help with your homeownership journey? Home Sweet Home PHL is here to guide you through every step, from buying and selling to maximizing your homeowner benefits. Contact us today!
