What Is a Homestead Tax Exemption?

The homestead tax exemption applies to property taxes. It’s generally a dollar amount or percentage of the property value that is excluded when calculating property taxes. The amount or percentage depends on the state, as does who is eligible for the exemption. In some states, every homeowner gets the tax exemption, while in other states, eligibility depends on income level, property value, your age or if you’re disabled or a veteran. One thing that is true in every state that has a homestead tax exemption, however, is that the home has to be a primary residence. Most states offer the homestead tax exemption.

Taxes are one of many factors to keep in mind when you become a homeowner. Consider working with a financial advisor who can help you manage the financial aspects of homeownership.

How Property Taxes Work

If you’re not familiar with property taxes, here’s a quick refresher. The value of any real property that you own (including your home) will be assessed, and then a property tax rate will be applied to that assessed value. You can appeal the value if you think it’s too high, but in general property tax bills are what they are.

Property tax rates fluctuate according to the decisions and needs of the tax authorities in your area. If the city decides it needs more funds, property tax rates may increase. Sometimes, residents can vote on these rate changes and in other cases, the decision is made with public input but doesn’t require public consent.

How Homestead Tax Exemptions Work

Homestead tax exemptions shelter a certain dollar amount or percentage of home value from property taxes. They’re called “homestead” exemptions because they apply to primary residences, not rental properties or investment properties. You must live in the home to qualify for the tax break. Some states exempt a certain percentage of a home’s value from property taxes, while other states exempt a set dollar amount.

If your state uses a percentage method, the exemption will be more valuable to homeowners with more valuable homes. If your state uses a flat dollar amount for its exemption, the exemption will be more valuable to homeowners with less expensive homes.

Ready for an example? To keep things simple, let’s say the assessed value of your home is $200,000 and your property tax rate is 1%. Your property tax bill would equal $2,000. But if you were eligible for a homestead tax exemption of $50,000, the taxable value of your home would drop to $150,000, meaning your tax bill would drop to $1,500.

Who’s Eligible for the Homestead Tax Exemption?

In some states, you’ll get the homestead exemption (or a bigger one) if your income is low, you’re a senior, you have a disability or you are a veteran. In most cases, these exemptions can’t be combined if you fall into more than one category. Some states also set an upper limit on the value of homes that can qualify for exemptions.

State governments can’t directly affect property tax rates because rates are set at the local level. So statewide homestead tax exemptions are a way for state governments to lower property tax bills indirectly. They do this to encourage homeownership, keep residents happy and give a property tax discount to people in need of a tax break.

Which States Have the Homestead Tax Exemption?

Most states have homestead exemptions, though they may not be homestead tax exemptions. States that have general homestead laws (e.g., to protect surviving spouses from creditors) may be included in the count. Every state except Delaware offers some kind of property tax relief for veterans or disabled veterans.

The table below breaks down many of the available exemptions in all 50 states (and Washington D.C.). Make sure you check the government websites periodically to keep up with any changes that could affect your eligibility.

State	Type of Exemption	Eligibility and Limits (2025)
Alabama	Homestead Exemptions	Qualifying homeowners under 65 get up to $4,000 in assessed value. Seniors 65+, blind, or totally disabled may receive larger or full exemptions.
Alaska	Property Exemptions	Seniors 65+ and disabled veterans may exempt up to $150,000 of assessed value. Local additions may apply.
Arizona	Homestead Exemption	Homeowners may protect up to $400,000 of equity, inflation-adjusted.
Arkansas	Homestead Tax Credit	Homeowners get a $600 homestead tax credit.
California	Homeowners’ Exemption	Up to a $7,000 reduction of assessed value on a principal residence.
Colorado	Homestead Exemption	Seniors, disabled veterans and surviving spouses can exempt 50% of the first $200,000 of actual value.
Connecticut	Veterans Exemption	Base $1,500 exemption; income-based and disability-based increases available.
Delaware	Senior School Property Tax Relief	Seniors 65+ may receive 50% credit on school tax up to $500.
Florida	Homestead Exemption	Up to a $50,000 reduction in taxable value; inflation adjustments may apply.
Georgia	Homestead Exemption	Senior and disabled veteran exemptions available, including a $121,812 veteran exemption.
Hawaii	Home Exemption	Up to $160,000 off assessed value, with higher amounts for seniors and special categories.
Idaho	Homeowner’s Exemption	50% of primary residence value up to $125,000. Disabled veterans qualify for additional relief.
Illinois	Homestead Exemptions	$6,000–$10,000 depending on county, with additional senior, disability, veteran and disaster exemptions.
Indiana	Property Tax Deductions	he standard deduction removes either 60% of your home’s assessed value or up to $48,000, whichever is less, and the supplemental deduction then reduces 40% of the remaining assessed value.
Iowa	Homestead Credit and Exemptions	Qualifying homeowners can get a credit that “is equal to the actual tax levy on the first $4,850 of actual value.” Additional credits and exemptions are available for seniors, families, veterans, and the disabled
Kansas	Homestead Refund	To claim a Kansas Homestead refund, you must have lived in the state for all of the tax year, owned and occupied a home worth no more than $350,000, and had household income of $42,600 or less.
Kentucky	Homestead Exemption	Exemptions are based on age, disability and veteran status. Qualifying homeowners can deduct $49,100 “from the assessed value of the applicant’s home and property taxes are computed based upon the remaining assessment.”
Louisiana	Homestead Exemption	Qualifying homeowners can get a tax exemption up to $75,000 for their primary residence. Additional exemptions are available for veterans.
Maine	Property Tax Exemptions	Qualifying homeowners residing in Maine for at least 12 months can get a $25,000 exemption for their primary residence by April 1. Additional exemptions are available for veterans, the blind, renewable energy, and business equipment.
Maryland	Property Tax Exemptions	Property Tax Exemptions Exemptions are available for qualifying military veterans and the surviving spouses of military personnel who were killed while serving.
Massachusetts	Property Tax Exemptions	Property Tax Exemptions Exemptions are available for qualifying seniors, veterans and their surviving spouses, the blind, the surviving spouses of firefighters and police, and others facing “hardship due to age, infirmity, & poverty.”
Michigan	Property Tax Exemptions	Full exemption for disabled veterans; many additional redevelopment and nonprofit exemptions.
Minnesota	Property Tax Programs	Veterans with 100% disability may receive up to $300,000 homestead exclusion.
Mississippi	Homestead Exemption	Homestead Exemption Qualifying homeowners can get an exemption for the first $7,500 of the assessed value of their home. Additional exemptions are available for seniors, the disabled, the blind, and veterans.
Missouri	Property Tax Credit	Property Tax Credit Qualifying seniors and disabled persons can get up to $750 in credit for rent and a maximum of $1,100 for the primary residence of homeowners.
Montana	PTAP	Property Tax Assistance Program (PTAP) Exemptions are based on filing status and adjusted gross income. The exemption, which ranges from a 30% to 80% reduction of a home’s value, is limited to the first $350,000 of the market value of a primary residence.
Nebraska	Homestead Exemption	Homestead Exemption Qualifying homeowners include seniors over 65, the disabled, as well as veterans and their surviving spouses.
Nevada	Personal Exemptions	Veterans can exempt $2,000 of value, and disabled veterans can exempt $10,000 to $20,000 depending on disability level, with yearly inflation adjustments.
New Hampshire	Property Exemptions and Credits	Tax credits are available for qualifying veterans, surviving spouses, the blind, the deaf, and the disabled, ranging from $50 to $4,000.
New Jersey	ANCHOR Program	Homeowners earning up to $150,000 get $1,500, those earning up to $250,000 get $1,000, and seniors add $250.
New Mexico	Head of Family Exemption	Head of Family Exemption Homeowners can get a $2,000 reduction on the taxable value of their residence as long they are the head of family and a New Mexico resident.
New York	STAR and Senior Exemptions	STAR exemption: $250,000 or less. Income limits: $107,300 for 2025 and $110,750 for 2026.
North Carolina	Homestead Exclusion	North Carolina excludes $45,000 of the appraised value of a primary residence owned by an honorably discharged disabled veteran or an unmarried surviving spouse.
North Dakota	Homestead Credits	Homeowners earning less than $70,000 can qualify for a credit that tops out at either $100,000 or $200,000, depending on income. Additional credits, refunds, and exemptions are available disabled veterans and other applicants
Ohio	Homestead Exemption	$28,000–$29,000 reduction for seniors or disabled homeowners and a $56,000–$58,000 reduction for disabled veterans or qualifying surviving spouses.
Oklahoma	Homestead Exemption	Qualifying homeowners can get an exemption of $1,000 off the assessed valuation of their residence, which could reduce $87 to $134.
Oregon	Property Tax Exemptions	Oregon has over 100 exemption programs for veterans, seniors and people with disabilities.
Pennsylvania	Homestead Exemption	Qualifying homeowners can get a property tax reduction for their primary residence.Pennsylvania.
Rhode Island	Tax Assessors Exemptions	Exemptions are available for seniors, people with disability, veterans, the blind, and people facing economic hardship. The “property value will be reduced by 43%, taxed by residential rate of $18.35.”
South Carolina	Homestead Exemption	Homeowners over age 65, disabled, or legally blind can qualify for an exemption on the “first $50,000 in Fair Market Value” of their primary residence.
South Dakota	Relief Programs	Up to $200,000 exemption for disabled veterans; senior tax deferral programs available.
Tennessee	Property Tax Relief	Tennessee provides state-funded property tax relief for eligible seniors, disabled homeowners and disabled veterans.
Texas	Homestead Exemptions	A general residence homestead exempts part of a home’s value from taxation, including a $100,000 school district exemption and optional local exemptions of up to 20% of appraised value (no less than $5,000).
Utah	Primary Residential Exemption	Qualifying homeowners can get a 45% exemption on the fair market value of their primary residence and up to one acre of land.
Vermont	Homestead Declaration and Credit	Qualifying homeowners must file the annual homestead declaration for their primary residence by April 1.
Virginia	Disabled Veteran Exemption	Qualifying veterans and surviving spouses can get a real estate tax exemption.
Washington	Senior and Disabled Exemptions	Tax exemptions are available for seniors, people with disabilities, homeowners with limited income, veterans and their surviving spouses, as well as nonprofit organizations.
Washington D.C.	Homestead, Senior and Disabled Deductions	Qualifying homeowners get deductions based on age, adjusted gross income, and primary residence.
West Virginia	Property Tax Exemptions	Homeowners age 65 and older, and persons with disabilities, can get an exemption for the first $20,000 of their primary residence.
Wisconsin	Property Tax Relief Credits	Qualifying homeowners can get a property tax credit for their primary residence.
Wyoming	Property Tax Refund & Long-Term Resident Relief	Wyoming offers veterans a $6,000 assessed-value refund for eligible residents on property taxes or vehicle registration.

Bottom Line

If you qualify, a homestead tax exemption can be a much-needed boon to your budget. Be sure to comply with state and local rules for claiming the tax exemption. If an application is required, submit your application for a homestead exemption on time. In some counties, scammers have fraudulently requested payment for filing these applications, so be aware. For applications and issues related to homestead tax exemptions, go directly to your county or local tax assessor.

Tips for New Homebuyers

A financial advisor can help you get your financial house in order before you purchase a new home. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Don’t forget to account for closing costs. SmartAsset’s closing cost calculator can help you estimate how much these extra fees and expenses will add up to for your purchase.