Quick Definition

A homestead exemption is a legal provision that reduces the property tax burden on a homeowner's primary residence by exempting a portion of its value from taxation.

Examples

• 1In Texas, homeowners may receive a general homestead exemption of up to $25,000 off their property's assessed value.
• 2In Florida, the homestead exemption can exempt up to $50,000 for a resident's primary home, which significantly lowers the property tax due.
• 3In some states, the homestead exemption also offers protection against forced sale by creditors, ensuring homeowners do not lose their primary residence under financial duress.

Tags