Homestead Exemption
If you have a primary residence and want to reduce the overall property tax bill associated with that residence, you may be able to apply for a homestead property tax exemption.
What is a Homestead Exemption?
The homestead exemption is a way to minimize property taxes for homeowners. It is also a legal provision offered in most states that helps shield a home from some creditors following the death of a homeowner’s spouse or the declaration of bankruptcy. The homestead tax exemption can provide surviving spouses with ongoing property tax relief, which is done on a graduated scale so that homes with lower assessed values benefit the most.
The homestead exemption is helpful since it is designed to provide both physical shelter and financial protection, which can block the forced sale of a primary residence. However, the homestead exemption does not prevent or stop a bank foreclosure if the homeowner defaults on their mortgage. Foreclosure occurs when a bank takes possession of a home due to a failure to make timely mortgage payments.
Deducting the Homestead Exemption
A homestead tax or property tax is typically applied to homes based on the assessed value of the property by the local government tax assessor’s office. The homestead tax can be a percentage of the property’s value or a fixed amount.
The homestead tax exemption may offer ongoing reductions in property taxes depending on local state laws. These exemptions can help surviving spouses remain in their homes after their income has been reduced by the death of their partner.
How do I apply for a Homestead Exemption?
For details on homestead tax exemptions, go directly to your county or local tax assessor’s website.
You must file with the county or city where your home is located. Each county has different applications and required documents. Various types of homestead exemptions are available, including those based on assessed home value and homeowner age.
Some states require you to fill out an application (often available online). Make sure you comply with your state’s application deadlines.
Also, be aware that some sites may be fraudulent and may request payment to fill out an application. Your county or local tax assessor will not require you to pay a fee to fill out an application for homestead tax exemption.
source: Investopedia
Homestead exemption applications are due by April 1 for the current tax year..
How Do I File a Homestead Exemption Application?
- Determine if You’re Eligible
To be eligible for a homestead exemption:
- You must have owned the property as of January 1.
- The home must be considered your legal residence for all purposes.
- You must occupy the home.
- You cannot already claim a homestead exemption for another property in Georgia or in any other state.
2.Gather What You’ll Need
Required documents vary by county or city. If you are applying for a special exemption, additional documentation to show proof of eligibility will be required. They can include:
- Homeowner’s name
- Property address
- Property’s parcel ID
- Proof of residency, such as a copy of valid Georgia driver’s license and a copy of vehicle registration
- Recorded deed for new owners, if county records have not been updated
- Trust document and affidavit, if the property is in a trust
3.File Your Homestead Exemption
You must file your homestead exemption application with your county tax officials. Please contact your county tax officials for how to file your homestead exemption application.
4.Next Steps
Once approved, most homestead exemptions are automatically renewed each year as long as you continually occupy the home under the same ownership.
Source: Georgia.gov
Where to file for Homestead Exemption?
Some states require you to fill out an application ,often available online.
While I recommend to do your own research this are some of the sources I have found: