Homestead Exemptions

A homestead exemption is a legal provision that reduces the property tax burden on a homeowner's primary residence. By applying for this exemption, homeowners can lower the assessed value of their home for tax purposes, which can result in significant savings. The specifics of the exemption, such as the amount of the reduction and eligibility requirements, vary by state or municipality. In addition to tax relief, homestead exemptions may offer certain protections against creditors, ensuring that a portion of a homeowner's equity is safeguarded in the event of bankruptcy or foreclosure.