As a homeowner, you could potentially save big on property taxes by taking advantage of a homestead tax exemption. These exemptions vary by state, but they typically benefit homeowners who live in the property they own. Are you curious about homestead tax exemptions and how to apply for them? Keep reading to learn more.

What is a homestead tax exemption?

A homestead tax exemption is a legal provision that reduces the amount of property tax you owe on your primary residence. The exemption applies to a portion of the assessed value of your home, which is the value that the local government uses to calculate your property taxes. The amount of the exemption varies by state and can range from a few hundred dollars to several thousand dollars.

To qualify for a homestead tax exemption, you must meet certain criteria, such as: 

  • Owning and occupying the property as your primary residence 
  • Being a permanent resident of the state 
  • Having the property as your principal place of residence on July 1st of the tax year 
  • Being a natural person and not a corporation or other legal entity 
  • Meeting any other eligibility requirements set by your state or local government

How to apply for a homestead tax exemption

To apply for a homestead tax exemption, you'll need to fill out an application with your local tax assessor's office.  Here are some general steps to follow:

  1. Check your eligibility Review the eligibility requirements for your state or local government. You can typically find this information on the tax assessor's website or by calling their office.
  2. Gather required documentation You'll likely need to provide documentation to prove your eligibility, such as your driver's license or state ID, proof of residency, and proof of ownership of the property.
  3. Complete the application Fill out the homestead tax exemption application, which may be available online or in person at the tax assessor's office. Make sure to provide all required information and documentation.
  4. Submit the application Submit the application to the tax assessor's office before the deadline, which is typically in the early part of the year. After you submit the application, the tax assessor's office will review it and determine if you qualify for the exemption.
  5. Renew the exemption In some states, you'll need to renew your homestead tax exemption annually or every few years.

Maryland Homestead Tax Information and Application

If you own and occupy your primary residence, a homestead tax exemption can be a valuable way to save money on your property taxes. To take advantage of this opportunity, make sure to apply for the exemption and keep it up to date by renewing it if necessary. For more information on eligibility and the application process in your area, contact your local tax assessor's office.