Last Updated: April 2026
Property tax exemptions can save homeowners hundreds to thousands of dollars per year. Unlike income tax deductions (which reduce taxable income), property tax exemptions directly reduce either your assessed property value or your tax bill — providing dollar-for-dollar savings. This guide covers major exemption programs in all 50 states for 2026, with a focus on homestead, senior, veteran, and disability exemptions.
A homestead exemption reduces the assessed value of your primary residence for property tax purposes. Most states require the property to be your primary residence and that you apply by a deadline. Key exemptions:
| State | Homestead Exemption | Notes |
|---|---|---|
| Texas | $100,000 off school taxable value + $10,000 city/county | Increased from $40,000 in 2023; file with county appraisal district |
| Florida | $50,000 off assessed value ($25K applies to all; $25K to non-school) | Must file by March 1; Save Our Homes 3% cap |
| Georgia | $2,000 off assessed value (state base) + local additions | Many counties add $5,000–$20,000; file by April 1 |
| Louisiana | $75,000 off assessed value (primary residence) | One of the most generous homestead exemptions |
| South Carolina | $50,000 off fair market value for primary residence | SC Legal Residence exemption; significant savings |
| Michigan | 18-mill principal residence exemption (school operating tax) | Effectively a $1,800–$3,000/year saving depending on value |
| New York | STAR: Basic exemption reduces school assessed value by $30,000 | Enhanced STAR for 65+: $70,700 reduction |
| Illinois | $10,000 off equalized assessed value | Also Alternative General Homestead (higher in some counties) |
| North Carolina | $25,000 off assessed value | Homestead exclusion; file with county |
| California | $7,000 off assessed value (basic homeowner's exemption) + Prop 13 protection | $70 saving on average — minor vs Prop 13 protection |
Most states offer additional property tax relief for seniors, often with income tests:
Senior exemption income limits vary widely: New York requires income under $98,700; New Jersey requires under ~$150,000; Texas has no income test for the over-65 basic exemption. Verify current thresholds with your county assessor as they change annually.
Most states provide property tax relief for veterans, particularly disabled veterans:
Filing: Most veteran exemptions require documentation (DD-214, VA disability rating letter) filed with the county assessor. Many veterans are unaware of their eligibility — especially for disability-related full exemptions.
Property tax exemptions are generally NOT automatic — you must apply. Key steps:
If you believe you are eligible but were not granted an exemption, you can appeal to your county's property tax assessment review board. Many homeowners successfully appeal both assessment values and exemption denials.
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Complex property tax situations — assessment appeals, late homestead filings, veteran exemption applications, or rental property tax treatment — benefit from professional guidance. Get matched with a CPA who knows your state's rules.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →For most homeowners, Texas's $100,000 homestead exemption from school taxable value (introduced in 2023) is one of the largest dollar-value exemptions. On a home with a $1.20% school rate, this saves approximately $1,200/year. For veterans, Texas provides an even larger benefit: 100% service-connected disabled veterans pay zero property tax — which on a $500,000 home could save $8,000+/year. Louisiana's $75,000 homestead exemption is also notable. Florida's $50,000 homestead plus the Save Our Homes cap has the greatest cumulative benefit for long-term residents in appreciating markets.
Yes — a homestead exemption can be revoked if: (1) You move out of the property and it's no longer your primary residence; (2) You rent the property; (3) You own another property with a homestead exemption (most states allow only one); (4) You fail to re-file when required; (5) You transfer ownership. In Florida, the Save Our Homes benefit is tied to the homestead — when you sell, the new owner starts at full market value assessment. The Portability program allows Florida homeowners to transfer their Save Our Homes benefit (up to $500,000) to a new Florida homestead within 3 years.
California's standard homeowner's exemption ($7,000 off assessed value) saves only about $70/year — it's largely symbolic given California's property tax structure. The real protection in California is Proposition 13, which limits assessed value to the purchase price with maximum 2% annual increases. This is not a traditional 'exemption' but the cumulative effect is dramatic: a homeowner who bought a house for $300,000 in 2000 may still pay tax on $400,000–$450,000 assessed value even though the home is worth $1,500,000 today — a saving of approximately $10,000–$15,000/year versus paying tax on full market value.
No — they are different mechanisms. An exemption reduces your taxable value by a fixed amount or percentage regardless of how the home is assessed. An assessment appeal challenges the county's valuation of your home as being too high. Both can reduce your tax bill. If your property's assessed value exceeds its market value, an appeal may reduce your bill more than an exemption. If you're already receiving the full homestead exemption but believe your assessment is too high, you should file a separate appeal. Many homeowners pursue both — a valid homestead exemption AND an appeal if they believe the assessment is inflated.