Property tax
Homestead exemption by state
The property tax break for the home you live in: what it is called in each state, how big it is, and where to apply.
Checked by Radif Partners · Editorial policy · How we calculate
A homestead exemption lowers the property tax on the home you own and live in. Almost every state has one, but they take different forms. In 24 jurisdictions it is a dollar amount taken off the assessed value, from $1,000 in Oklahoma to $150,000 in Alaska; in 8 it is a credit or rebate on the tax itself; in 7 a percentage of value; and in 2 a freeze or a cap on how fast the taxable value can rise. Connecticut, Massachusetts, Oregon, Rhode Island, South Dakota, Tennessee, Vermont, Virginia, Washington and Wisconsin have no general homestead exemption, only targeted programs. Many exemptions apply only to school taxes or only up to an income limit, and almost all require an application with the county assessor, often once, by a spring deadline. On a $300,000 home taxed at 20 mills, a $50,000 exemption saves $1,000 a year.
What a homestead exemption saves
Saved per year
$1,000
| Saved per month | $83 |
| Saved over 10 years (same levy) | $10,000 |
Applies only to the levies the exemption covers: some exemptions reduce school taxes only.
The main homestead relief of each state
Four forms of relief
An amount off the value. The most common form: a fixed dollar figure is subtracted from the assessed value before the levy is applied. Its worth depends on your mill rate, so the same $50,000 exemption saves more in a high-tax county than in a low-tax one. Where homes are assessed at a fraction of value, check whether the amount comes off market value or assessed value; the state page says which.
A credit or rebate. Some states reduce the tax bill directly, or pay owners a rebate after the bill is paid, often scaled by income. The saving is a dollar figure regardless of the levy. Rebates paid by the state can arrive months after the bill.
A percentage. A share of the home's value, sometimes up to a ceiling, is exempt. It behaves like a lower assessment ratio for owner-occupants.
A freeze or cap. Instead of a fixed reduction, the taxable value of the home may rise only by a set percentage a year while the same owner keeps it, or is frozen for qualifying seniors. The benefit grows in rising markets and disappears when the home is sold; see property tax assessment caps.
The largest dollar exemptions
Among the states whose main program takes a fixed amount off the value, the largest are Alaska ($150,000, Senior citizen and disabled veteran exemption), Texas ($140,000, Residence Homestead Exemption), District of Columbia ($91,950, Homestead Deduction), Kansas ($75,000, Residential exemption from the statewide school levy), Florida ($50,000, Homestead Exemption), South Carolina ($50,000, Homestead Exemption). Size alone is misleading. In some of these states the exemption applies only to school taxes, or only to owners over an age or under an income, and where homes are assessed at a fraction of their value a small dollar figure removes a larger share of the taxable value than it seems. A fixed amount also weighs more on a modest home than on an expensive one: $50,000 off a $150,000 house removes a third of its value, off a $600,000 house a twelfth.
Relief tied to income
In Connecticut, Massachusetts, Michigan, Minnesota, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Tennessee, Vermont, Washington and Wisconsin, the main program described on the official page depends on household income, so two neighbors with the same house can receive different amounts, and the claim is usually renewed every year with proof of income. Income-tested programs are often called circuit breakers: they cap the property tax at a share of income, or refund the part above it. They matter most for retirees with a paid-off home and a small pension, whose bill can rise with values while their income does not.
Who qualifies
The home must be your primary residence, owned by you (or held in a trust for you in many states) on the assessment date, which is often January 1. You can usually claim only one homestead, in one state: claiming a homestead in two places, for instance a home in one state and a winter condo in another, is a classic reason for back taxes and penalties when assessors compare their rolls. Seniors, people with disabilities, disabled veterans and surviving spouses often receive larger exemptions or a freeze on top of the general one, as listed on each state page under other relief.
How and when to apply
In most states you file once with the county assessor or property appraiser, and the exemption renews automatically while you own and live in the home; a few states require a periodic renewal, or an income declaration every year for income-tested programs. Deadlines are usually early in the year, and a missed deadline typically means waiting a year, though some states accept late filing with a reduced benefit. New owners should apply in the first year: the seller's exemption does not pass to the buyer, and a bill based on the seller's exemption can be followed by a higher one.
Checking that you receive it
Your bill or assessment notice lists exemptions applied to the parcel. If the homestead line is missing, the bill was computed without it. In the property tax calculator, switch to your mill rate, enter the exemption your state grants and compare: the gap is what the missing exemption costs you each year. The step-by-step guide shows where the exemption enters the calculation.