What is Homestead?
Homestead Exemption is a tax exemption offered to eligible taxpayers. It provides a financial relief and legal provision to your primary residence once filed. State governments offer this to encourage homeownerships and to give a financial property discount to those in need.
Homestead can protect a widow from creditors if their spouse dies or allow them ongoing property tax relief if they qualify. Also, this tax exemption provides the surviving spouse with shelter after the passing of their provider. It can help protect those from having to file bankruptcy or having a forced sale to meet the demands of creditors in some situations. Some states protect up to a certain monetary amount or acreage.
The homestead tax exemption is also a reduction in property taxes based on local state laws. Typically, it offers a break from ad valorem taxes limited to the first seven thousand five hundred dollars of assessed value of the property, depending on the local laws. Contact your local tax assessor’s office for further information.
Who is eligible?
Any primary residence can file for homestead exemption, but they must file for it at their local tax office. The applicant must also be considered “a head of family” as there can only be one head of family for one homestead. Also, you must also be the owner of the primary property, have an eligible title to the property, and be a residence of the state you are filing in. You can only claim the exemption on one property, and it must be the one you are living in.
How do I file it?
You must fill out a written application between January 1 and April 1 in the year that you are seeking to receive this tax exemption. You must be willing to supply complete and accurate information to the tax assessor’s office in the set time frame.
Please contact your local tax assessor’s office for more details. If you have more loan specific questions, call our office to speak with one of our licensed mortgage professionals.