Exemptions are the most under-used way to cut a property-tax bill. They reduce the taxable value of your home before the rate is applied — and unlike an appeal, you don’t have to argue your home is worth less, you just have to qualify and apply.
Disclaimer. Exemption types, amounts, income limits and deadlines vary by state and county. This is general information — confirm what you qualify for with your county assessor.
How an exemption lowers your bill
Recall the formula: tax = (assessed value − exemptions) × rate. An exemption shrinks the base. A $50,000 homestead exemption at a 1.2% rate saves $600 a year — every year. How property taxes are calculated walks through the full formula.
The main exemptions
| Exemption | Who it’s for | Typical benefit |
|---|---|---|
| Homestead | Owner-occupied primary residence | Flat value reduction and/or assessment cap |
| Senior / elderly | Homeowners over a set age (often 65+) | Extra value reduction; sometimes income-limited |
| Veteran | Veterans (and surviving spouses) | Partial reduction; scales with disability rating |
| Disabled veteran | Service-connected disability | Up to full exemption in some states for 100% disability |
| Disability | Homeowners with qualifying disabilities | Value reduction |
| Surviving spouse | Spouses of veterans / first responders | Continued exemption |
Homestead: the big one
The homestead exemption applies to your primary residence and is the most widely available. Depending on the state it can:
- exempt a fixed dollar amount of value (e.g. the first $25,000–$50,000),
- or cap how fast your assessed value can rise each year (protecting long-time owners in hot markets).
You generally must own and occupy the home as your main residence — not a rental or second home.
How to claim them
- Check eligibility on your county assessor’s site (age, residency, disability, income limits).
- Apply by the deadline — many are one-time filings, but some need annual renewal.
- Keep documentation — ID, proof of residency, DD-214 for veterans, disability paperwork.
- Re-check after life changes — buying a home, turning 65, a change in disability status, or losing a spouse can all open new exemptions.
Don’t leave money on the table
Many homeowners overpay for years simply because they never filed. After confirming your exemptions, compare your county’s median effective rate to your own; if you’re still high, consider appealing your assessment. Use the estimator to see how an exemption changes your bill.