What is a Homeowner's Exemption for Property Taxes?
Homeowner’s Exemption, Explained
If you own and occupy your principal place of residence, you may apply for a Homeowners' Exemption that will exempt some of your home's assessed value from taxation ($7,000 for California and $125,000 for Idaho). This exemption lowers the taxable value of your home, which then lowers your taxes by the corresponding tax rate times that exemption amount (i.e. - if your tax rate is .75% on an Idaho home, the exemption saves you $875 in annual taxes... or if your tax rate is 1.25% on a California home, the exemption saves $87 per year).
Qualifying for a Homeowner's Exemption
You must own and occupy your home as your primary residence in order to qualify. In order to receive the exemption, you need to fill out an exemption application with your county tax collector. New property owners will usually receive an exemption application within 90 days of their home purchase.
Each county has a unique deadline to file for the full exemption. Partial exemptions are also available for the current tax year if your application is filed after the deadline. This exemption applies every year that you are eligible. It’s not just a one year benefit!
Maintaining Your Exemption Benefit
Once you’ve filed for a Homeowners' Exemption and you continue to own and occupy the home as your primary residence, you’ll automatically receive the exemption each year. However, if a document is filed with the county that changes the way the title is held, then you may be required to reapply. This is most common in situations where homeowner’s change their property title to put it in the name of their family trust. Remember to reapply after this change to continue receiving the benefit!
Feel free to contact us with any questions regarding this Homeowner’s Exemption...we’re here to help!
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