Q:

What is the homestead exemption?

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Quick Answer

A homestead exemption, sometimes called a homestead deduction, is a form a property tax relief usually given on primary residences to a certain group of people. Homestead exemptions vary by state, and a state may have several types of homestead exemptions geared toward different groups of people.

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Full Answer

As of 2014, the state of Illinois offers eight different homestead exemptions, including a General Homestead Exemption, Long-term Occupant Homestead Exemption and Natural Disaster Homestead Exemption. Homestead exemptions are often limited to a certain dollar amount or percentage of a property's value. An exemption may also have income and occupancy requirements, which require a claimant to live at a property for a certain number of years, as well as have an annual or monthly income lower than a certain amount.

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