In addition to paying a mortgage, homeowners are responsible for other costs such as insurance and property taxes. Typically, the amount of property tax is based on the value of your home. Simply put, the more your home is worth, the more you will owe in property tax. The good news is you may be able to save some money on your property taxes by claiming a homestead exemption.
Homestead exemptions help save on property taxes by excluding a portion of your home’s value from assessment. The amount of taxes you owe is calculated based on the difference between your home’s value and the exception amount.
Homestead exemptions can only be claimed for principal residences by the person or persons primarily responsible for the mortgage. You cannot claim homestead exemptions for rental or vacation property, only your primary residence. If you own a home that your adult children or relatives live in, they can only claim a homestead exemption if they have an ownership interest in the property.
Applications for homestead exemption must be filed by April 1 of the year for which the exemption is first claimed by the tax payer. Once granted, the homestead exemption is automatically renewed each year and the taxpayer does not have to apply again unless there is a change of ownership or the taxpayer seeks to qualify for a different exemption.
If you’re not sure if you qualify or need help, just contact us. We’ll be glad to help!