What kinds of homestead tax reductions are available?


Quick Answer

There are basic homestead exemptions, such as the county tax and school tax categories. There are additional exemptions that are applicable to people of certain ages, physical and mental condition and social standing. Different taxing units from various areas do not follow identical procedures and do not have the same criteria.

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Full Answer

As of March 2015, the current homestead level is $75,000. This was approved by a state-wide vote that took place in 1980. The homestead cap refers to the property value exempt from tax. Either the current market value of the property or previous year’s value plus 10 percent is used to calculate the tax. The lesser of the two values is used. Veterans with a disability rating of 100 qualify for a 100 percent homestead exemption. If the veteran’s rating is less than 100, other factors, such as age, are taken into consideration.

The exemption for homeowners aged 65 takes effect when the homeowner turns 65, so it is not necessary to have been 65 at the date of the property’s purchase. There is also an exemption for homeowners with disabilities. A disabled person is broadly described as someone who cannot be gainfully employed. Each homeowner is assessed on the application as to whether or not he or she is eligible. Being considered as disabled by another government program does not automatically qualify for this exemption.

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