Homestead Exemption Explained (2026)
A homestead exemption is one of the easiest ways to cut your property tax. This guide explains what it is, how much it saves, how to apply, and the specific rules for Texas, Florida, California and other major states.
📅 Last updated: July 2026 · Sources: Texas Comptroller, Florida DOR, California BOE
A homestead exemption is a property-tax break for your primary home. It removes part of your home's taxable value — and, in several states, caps how fast that value can rise — so you pay less property tax each year. You claim it by filing a one-time application with your county, and in most states it renews automatically.
See how much an exemption cuts your bill:
🏛️ Property Tax Calculator →What is a homestead exemption?
A homestead exemption reduces the assessed (taxable) value of the home you live in as your main residence. Property tax is charged on that assessed value, so lowering it lowers your bill. For example, a $50,000 exemption on a $350,000 home means you are taxed as if the home were worth $300,000.
Many states pair the exemption with an assessment cap — a limit on how much your taxable value can rise each year (California's Proposition 13 caps it at 2%, Florida's Save Our Homes at 3%, Texas at 10%). Over time, that cap can save more than the exemption itself. Exemptions only apply to a primary residence — never a second home, rental or investment property.
What does a homestead exemption do — and how much does it save?
The dollar saving depends on your state's exemption amount and your local tax rate. A useful rule of thumb: exemption amount × your effective tax rate = your annual saving. A $40,000 exemption at a 1.5% rate saves about $600 a year; a Texas $140,000 school exemption at ~1.4% saves close to $2,000 on the school-tax portion. States also stack extra relief for seniors (65+), veterans, disabled owners and surviving spouses.
How to apply for a homestead exemption
- Confirm eligibility — you own the home and it's your primary residence (usually as of January 1).
- Get the form from your county appraisal district, assessor or property-tax office (most are free to file and available online).
- Provide proof of residence — typically a driver's license or state ID showing the property address.
- File before the deadline — commonly March 1 (FL), April 1 (GA), Feb 15 (CA) or before May 1 (TX).
- Check your next tax bill to confirm the exemption was applied.
In most states this is a one-time filing that renews automatically. A few places (Cook County, Illinois; some Massachusetts towns) require annual re-filing, and senior exemptions often need yearly income verification.
Homestead exemption by state (2026)
Rules vary widely. Here's how the exemption works in the most-searched states — note that New Jersey and North Carolina have no broad homestead exemption, and Arizona and Washington offer only targeted senior/disabled relief rather than a general one.
| State | Homestead exemption | Assessment cap | Deadline |
|---|---|---|---|
| Texas | $140,000 school-district exemption | 10%/yr | Before May 1 |
| Florida | Up to $50,000 | 3%/yr (Save Our Homes) | March 1 |
| California | $7,000 Homeowners' Exemption | 2%/yr (Prop 13) | Feb 15 |
| Illinois | $6,000–$10,000 EAV (by county) | — | Varies |
| Pennsylvania | Homestead/Farmstead exclusion | — | March 1 |
| Georgia | $2,000 standard (+ HB 581 cap) | Inflation cap (opt-out) | April 1 |
| New York | STAR: $30k basic / $88.5k enhanced | — | Varies |
| Massachusetts | Local residential exemption (~15 towns) | — | ~April 1 |
| Arizona | No general exemption | 5%/yr (LPV) | — |
| Washington | No general exemption | — | — |
Texas homestead exemption
Texas gives owner-occupants a $140,000 school-district homestead exemption (raised from $100,000 by 2025 legislation ratified by voters in November 2025), plus optional local exemptions from counties, cities and other taxing units. A 10%-per-year cap limits how fast your homestead's taxable value can rise. File once with your county appraisal district before May 1 — no annual renewal needed. Over-65 and disabled owners get an additional $60,000 school exemption. Full Texas homestead exemption guide →
Florida homestead exemption
Florida offers up to $50,000 off assessed value: the first $25,000 applies to all taxes; a second $25,000 applies to value above $50,000 and excludes school taxes. The Save Our Homes cap then limits annual assessment growth to 3% (or CPI, whichever is lower). The deadline is March 1, and it renews automatically. Florida also allows portability — you can move your accumulated Save Our Homes savings to a new Florida home. Full Florida homestead exemption guide →
California homestead exemption
California's property-tax break is the $7,000 Homeowners' Exemption (a reduction in taxable value), filed once on form BOE-266 by February 15. Far more valuable is Proposition 13, which caps assessed-value growth at 2% a year until the home is sold. (Note: California's separate "homestead exemption" in bankruptcy law is a different thing — it protects home equity from creditors.)
Illinois homestead exemption
Illinois' General Homestead Exemption reduces your equalized assessed value (EAV) by $10,000 in Cook County, $8,000 in the collar counties and $6,000 elsewhere. Seniors get an additional exemption and, if income-eligible, an assessment freeze. Cook County requires annual re-application; most other counties renew automatically after the first filing.
Pennsylvania & Georgia
Pennsylvania uses a Homestead/Farmstead exclusion that lowers the assessed value used for school taxes; the amount varies by district and is funded partly by state gaming revenue. Enroll through your county assessment office by March 1. Georgia gives a $2,000 standard homestead exemption (deadline April 1), and under HB 581 a newer statewide floating exemption caps homestead value growth to an inflation index — although individual counties, cities and school districts were allowed to opt out.
New York, Massachusetts, Arizona & Washington
New York uses STAR (School Tax Relief) instead of a classic homestead exemption — a $30,000 value benefit for Basic STAR and $88,500 for Enhanced STAR (age 65+, income-limited); new applicants receive it as a credit. Massachusetts has no statewide exemption, but about 15 municipalities (including Boston and Cambridge) offer a local residential exemption worth a few thousand dollars, filed annually. Arizona and Washington have no general property-tax homestead exemption — Arizona's "homestead exemption" is creditor/equity protection only, and both states limit relief to income-qualified senior and disabled programs.
Estimate your property tax — with or without the exemption:
🏛️ Try the Property Tax Calculator →Frequently Asked Questions
Related calculators & guides
- US Property Tax Calculator — estimate your bill by state, then subtract your exemption.
- PITI Mortgage Calculator — see property tax inside your full monthly payment.
- Closing Cost Calculator — budget your total cash to close.
- US Property Tax Guide — how assessments, mill rates and appeals work.
⚠️ This guide is general information, not tax or legal advice. Homestead exemption amounts, caps and deadlines are set by each state and county and change over time (Texas raised its school exemption to $140,000 in 2025). Always confirm the current rules and file with your local county appraisal district or assessor.
