Beginning of the year, January is round around the corner! A lot of my clients do not always perceive the intended importance of the tax exemption. How it affects you as a homeowner? The goal of this article is to, if you haven't planned to declare a homestead exemption on your primary residence, I will make you grab your keys and get to your County Tax Office ASAP!
The Homestead Exemption sets a 10% cap on how much they can raise the valuation of your home. For instance, if you have a $100,000 home, and next year, the valuation is $150,000, rather than your taxes going up by 50%, they must cap the valuation at $110,000 for the next year.
1. Own the home 2. Principal place of residence in January, when the county assesses annual property taxes. The amount of the exemption depends on state and county laws.
Homestead exemptions lower your taxes as they remove part of your home's value from taxation. If your home is appraised at $100,000, and you qualify for a $25,000 exemption, you will pay school taxes on the home as if it was worth only $75,000.
No, only a homeowner's principal residence qualifies. To qualify, a home must meet the definition of a residence homestead: The home's owner must be an individual (for example: not a corporation or other business entity) and use the home as his or her principal residence on January 1 of the tax year. If you are age 65 or older, or disabled, the January 1 ownership and residency are not required for the age 65 or disabled homestead exemption.