Homeowners' Exemption (2024)

FAQs

How does California homeowners exemption work? ›

The Homeowners' Exemption reduces your property taxes by deducting $7,000 from your property's assessed value before applying the tax rate, and given the one percent statewide property tax rate, this generally equates to $70 in property tax savings.

The Homeowner Exemption reduces the Equalized Assessed Value (EAV) of a property by $10,000.

Eligibility for the Homestead Exemption: To be eligible for the Homestead Exemption in New York, you must meet the following criteria: The property must be your primary residence. Vacation homes, investment properties, and second homes do not qualify. You must own the property and have an equity interest in it.

The amounts and types of other residential exemptions vary widely, and may cover property owned by senior citizens, veterans, volunteer firefighters and other classes of individuals. Source: NYS Tax and Finance; includes all local government and school district exemptions.

Stability. Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.

The exemption amount for personal exemptions (the taxpayer and spouse) and each dependent claimed on the taxpayer's return is adjusted annually for inflation. However, the deduction is effectively repealed for tax years beginning in 2018 through 2025 as the exemption amount is $0 for these years.

Most senior homeowners are eligible for this exemption if they are 65 years of age or older (born in 1958 or prior) and own and occupy their property as their principal place of residence. Once this exemption is applied, the Assessor's Office automatically renews it for you each year.

Property tax savings for a Homeowner Exemption are calculated by multiplying the Homeowner Exemption amount of $10,000 by your local tax rate. Property tax savings for a Senior Exemption are calculated by multiplying the Senior Exemption amount of $8,000 by your local tax rate.

Certain types of income, such as portions of retirement income and some academic scholarships, are tax exempt, meaning that they are not included as part of a filer's taxable income.

What states have the highest homestead exemptions? ›

The Homestead Act, enacted during the Civil War in 1862, provided that any adult citizen, or intended citizen, who had never borne arms against the U.S. government could claim 160 acres of surveyed government land. Claimants were required to live on and “improve” their plot by cultivating the land.

Eligibility Requirements

All owners of the property must be 65 or older, unless the owners are spouses or siblings. If you own the property with a spouse or sibling, only one of you must meet this age requirement. The total combined annual income of the property owner and spouse or co-owner cannot exceed $58,399.

The California Constitution provides a $7,000 reduction in the taxable value for a qualifying owner-occupied home.

Tax Savings Program for Homeowners​

The Homeowners' Exemption provides homeowners a discount of $7,000 of assessed value resulting in a savings of approximately $70-$80 in property taxes each year. This is a free program; however, an application is required.

A homestead exemption protects home equity from a homeowner's creditors, up to a certain dollar amount. Collectors cannot acquire any funds within this amount to settle past-due debt. This applies if you file for bankruptcy or you experience financial difficulties after a divorce or your spouse passes away.

If the assessor learns after the fact that an exemption should have been terminated, a penalty of 25%, which is an additional $18 in taxes, is added when the exemption is cancelled and bills are issued for the repayment of the taxes that should have been collected.