Guide
Homestead exemptions by state: how much can you save in 2026?
Every state taxes homes differently, but almost all of them share one quiet rule: owner-occupants are supposed to pay less than investors — through a homestead exemption, an assessment cap, a credit, or a lower assessment ratio. The catch is that in most states, at least part of that break isn't automatic. You file a form once (usually free, usually one page), or you pay the full rate forever. Missed exemptions are the single most common reason two identical houses on the same street pay different tax bills.
This guide covers what homestead exemptions actually are, the four ways states deliver them, and a 50-state table of the headline provision where you live. To see what your bill should look like, run your numbers through our Property Tax Calculator — every state page pre-fills the local effective rate.
What a homestead exemption is
A homestead exemption reduces the property tax on your primary residence — the home you actually live in, not a rental or second home. The policy goal is simple: keep owner-occupiers (especially seniors on fixed incomes) from being taxed out of their homes as values rise. The mechanics vary, but they come in four flavors:
- Flat-dollar exemptions. A fixed amount of your home's value is removed before tax is calculated. Texas removes $100,000 from school-district taxes; Louisiana exempts the first $75,000 of market value; Florida removes $50,000. On a 1% rate, every $50,000 exempted saves you about $500/year.
- Percentage exemptions. A share of your value is exempt regardless of price. Utah taxes primary residences on just 55% of value; Idaho exempts 50% (up to $125,000); Providence, RI exempts up to 40%.
- Assessment caps. Your taxable value can only grow so fast, no matter what the market does. Florida's Save Our Homes cap is 3%/year, Texas homesteads are capped at 10%/year, California's Prop 13 caps everyone at 2%/year, and Michigan's Proposal A caps growth at inflation. In a rising market, the cap quietly becomes the biggest tax break you have.
- Credits and rebates. Instead of reducing taxable value, the state cuts the bill or mails a check — Arkansas's $500 homestead credit, Wisconsin's lottery credit, New Jersey's ANCHOR rebate.
How much is this actually worth?
It depends heavily on the state. In states with small flat exemptions and low rates, the savings are a couple hundred dollars a year. In states that exempt large shares of value — or exempt you from entire levies — it's thousands. Here's the approximate annual value of the headline provision on a $400,000 home in six states where the break is substantial:
South Carolina is the standout most people have never heard about: owner-occupants get a lower assessment ratio (4% instead of 6%) and a full exemption from school operating taxes. Combined, an owner-occupied home in SC often pays less than half what the same house would pay as a rental. Idaho and Utah exempt large percentages of value outright. And in every cap state, long-tenured owners save amounts that grow every year the market rises.
The headline provision in all 50 states
The table below shows the provision most likely to matter to a typical owner-occupant. Most states also stack additional exemptions for seniors, veterans, and disabled homeowners on top. Click any state to open its property tax calculator with local rates pre-filled.
| State | Headline homestead provision |
|---|---|
| Alabama | $4,000 assessed-value exemption; homeowners 65+ exempt from the state portion entirely. Counties add their own. |
| Alaska | $150,000 exemption for seniors 65+ and disabled veterans; Anchorage adds a 10% owner-occupant exemption (up to $75k). |
| Arizona | Automatic Homeowner Rebate on school taxes, plus a 5%/year cap on the taxable value of every home. |
| Arkansas | Homestead credit of up to $500 off the bill, plus a 5%/year cap on homestead assessment increases. |
| California | $7,000 homeowner's exemption, plus Prop 13's 2%/year assessed-value cap — the cap is the real money. |
| Colorado | Seniors (10+ years in the home) and disabled veterans: 50% of the first $200,000 of value exempt. |
| Connecticut | No general homestead exemption; income-qualified seniors get circuit-breaker credits. |
| Delaware | Seniors 65+ get a credit for 50% of school taxes (capped around $500). |
| Florida | $50,000 homestead exemption plus the Save Our Homes 3%/year assessment cap — portable when you move in-state. |
| Georgia | Base exemption varies widely by county; a new statewide floating cap limits assessment growth unless a county opted out. |
| Hawaii | Honolulu home exemption: $120,000 off assessed value ($160,000 for owners 65+). |
| Idaho | 50% of your home's value exempt, up to $125,000 — one of the biggest levers in the country. |
| Illinois | General Homestead Exemption: $10,000 of EAV in Cook County ($6,000+ elsewhere), plus senior and senior-freeze add-ons. |
| Indiana | $48,000 standard deduction plus a 37.5% supplemental deduction — and a constitutional 1%-of-value tax cap. |
| Iowa | Homestead credit plus a newer exemption of $6,500 in taxable value for homeowners 65+. |
| Kansas | First $75,000 of value exempt from the statewide 20-mill school levy; SAFESR refunds for qualifying seniors. |
| Kentucky | Roughly $49,000 exemption — but only for homeowners 65+ or fully disabled. |
| Louisiana | First $75,000 of market value exempt from most parish taxes — among the most generous in the nation. |
| Maine | $25,000 homestead exemption after 12 months of residency. |
| Maryland | Homestead Tax Credit caps annual taxable-assessment growth at 10% statewide — much lower in many counties (4% in Baltimore City). |
| Massachusetts | Local-option residential exemption — Boston's removes roughly a third of the average home's value for owner-occupants. |
| Michigan | Principal Residence Exemption removes up to 18 school-operating mills, plus Prop A's inflation cap on taxable value. |
| Minnesota | Homestead Market Value Exclusion trims taxable value on homes under ~$517k, and unlocks the property tax refund programs. |
| Mississippi | Credit up to $300; homeowners 65+ or disabled are fully exempt on the first $75,000 of value. |
| Missouri | Circuit-breaker credit for income-qualified seniors; counties can now freeze senior tax bills. |
| Montana | No general homestead exemption; relief comes through rate tiers and periodic rebates. |
| Nebraska | Income-based homestead exemption for seniors 65+, veterans, and disabled homeowners (file annually). |
| Nevada | The 3%/year abatement cap on owner-occupied bills — you must file the owner-occupancy claim to get it. |
| New Hampshire | No homestead exemption; low-and-moderate-income relief on the state education tax only. |
| New Jersey | ANCHOR rebate (up to ~$1,500), Senior Freeze reimbursement, and the new StayNJ senior cut — relief by rebate. |
| New Mexico | $2,000 head-of-family exemption plus a 3%/year valuation cap on residential property. |
| New York | STAR exempts part of a primary residence's value from school taxes (Basic under $500k income; Enhanced for seniors). |
| North Carolina | Seniors/disabled with qualifying income: exemption of $25,000 or 50% of value, whichever is greater. |
| North Dakota | Newer $500 primary-residence credit for all owner-occupants, plus a senior homestead credit. |
| Ohio | $26,200 of market value exempt for income-qualified seniors and disabled homeowners, plus the 2.5% owner-occupancy credit. |
| Oklahoma | $1,000 of assessed value (double for lower incomes), plus a senior valuation freeze. |
| Oregon | No general homestead exemption; senior and disabled deferral programs instead. |
| Pennsylvania | Homestead exclusion varies by district — Philadelphia's removes $100,000 of assessed value; statewide rebate program for seniors. |
| Rhode Island | City-option homestead exemptions — Providence's runs as high as 40% for owner-occupants. |
| South Carolina | Owner-occupants get the 4% assessment ratio AND full exemption from school operating taxes — a massive combined break; $50k more for 65+. |
| South Dakota | Owner-occupied homes get a reduced school levy classification; assessment freeze for income-qualified seniors. |
| Tennessee | No exemption; tax-relief reimbursements and county-option freezes for seniors and disabled veterans. |
| Texas | $100,000 school-district exemption, a 10%/year appraisal cap, and a school-tax freeze at 65 — file once, free. |
| Utah | 45% of a primary residence's value is exempt — you're taxed on just 55%. |
| Vermont | File the homestead declaration (HS-122) by April 15 for the lower education rate and income-sensitive credit. |
| Virginia | Local senior/disabled programs vary by city; 100% disabled veterans fully exempt statewide. |
| Washington | Income-qualified seniors 61+ and disabled homeowners get an exemption and valuation freeze. |
| West Virginia | $20,000 exemption for homeowners 65+ or disabled, on top of lower Class II owner-occupied rates. |
| Wisconsin | Relief arrives as credits on the bill — School Levy, First Dollar, and Lottery & Gaming credits. |
| Wyoming | Newer 25% exemption on home value (capped), and a 50% long-term homeowner exemption for 65+ with 25+ years in-state. |
Washington, DC homeowners get a homestead deduction of roughly $88,000 plus a 10% cap on taxable assessment growth — see the DC Property Tax Calculator. Provisions current as of 2026; dollar amounts adjust periodically.
How to claim yours
The process is nearly identical everywhere, and it's designed to be done without a lawyer:
- Confirm eligibility. You generally must own the home and occupy it as your primary residence as of a snapshot date — January 1 in most states. One homestead per household.
- Find the form. Search "[your county] homestead exemption application" — it lives on the county assessor, appraisal district, or property appraiser's site. Most counties now take it online.
- File before the deadline. Deadlines cluster in the spring (Florida: March 1; Texas: April 30, with late filing allowed; Georgia: April 1). Miss it and you usually wait a full tax year.
- File once, verify yearly. Most exemptions renew automatically while you live there — but check your annual notice. If the exemption line disappears (common after refinancing or retitling into a trust), call the assessor immediately.
One warning: ignore the letters offering to "file your homestead exemption" for $50–$100. They're solicitation mills — the county does it for free.
Exemptions and appeals work together
The exemption lowers the rate math; an appeal challenges the value the math is applied to. If your assessment looks high and you're missing an exemption, fix both — they stack. Our step-by-step guide to appealing your property tax assessment covers the evidence and deadlines, and the Millage Rate Calculator helps you translate your district's mill rates into actual dollars.
Bottom line: somewhere between five minutes and one page of paperwork separates most homeowners from hundreds of dollars a year, every year they own the home. Check your latest tax bill for an exemption line — and if it's blank, that's your weekend project.
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