Homestead Exemptions: How to Lower Your Property Tax Bill as a Homeowner

A homestead exemption is one of the simplest and most valuable property tax benefits available to homeowners — and one of the most frequently unclaimed. If your primary residence is not registered for a homestead exemption in your state, you are almost certainly paying more in property taxes than you have to.

What Is a Homestead Exemption?

A homestead exemption reduces the taxable assessed value of your primary residence, which directly lowers your annual property tax bill. The key word is primary residence — homestead exemptions apply only to the home you live in as your main residence. Investment properties and vacation homes do not qualify.

State Highlights

Texas

Texas has one of the most comprehensive homestead programs. The general homestead exemption removes $100,000 from the school district assessed value. A 10% annual cap prevents assessed value from increasing more than 10% in any single year. Over-65 homeowners receive an additional $10,000 school district exemption plus a freeze on school taxes.

Florida

Florida’s homestead exemption removes $25,000 from all taxes plus an additional $25,000 from non-school taxes on assessed value between $50,000–$75,000. The Save Our Homes provision caps annual assessment increases at the lesser of 3% or CPI. Apply with your county property appraiser by March 1.

California

California’s basic homeowner’s exemption is $7,000 off assessed value. The real benefit is Proposition 13, which caps annual assessment increases at 2% for homeowners who stay in their homes. Apply with your county assessor by February 15 for the first year.

Illinois

Illinois offers a General Homestead Exemption of up to $10,000 in Cook County and $6,000 elsewhere, plus a Senior Citizens Homestead Exemption and an Assessment Freeze for qualifying low-income seniors. Apply with your local township assessor.

How to Apply

• Find your local county assessor’s office — applications are filed locally, not at the state level
• Watch the deadline — most states have annual deadlines between January and April
• Bring your government-issued ID showing the property address, your deed, and proof of primary residency
• Re-apply when you move — the exemption is tied to the specific property and your residency there

Many jurisdictions now allow online applications. Search “[your county] homestead exemption application” to find the correct form.