reference
glossary.
25 terms
definition
A legal provision that protects a portion of a home's value from property taxes and creditors, available to homeowners who use the property as their primary residence. The exemption amount varies by state and can provide significant savings on annual property tax bills. Homeowners typically must apply annually to maintain this exemption.
examples
- —The homestead exemption saved the family $800 annually on their property taxes.
- —New residents must apply for the homestead exemption by the local deadline to receive benefits for the current tax year.
- —During bankruptcy proceedings, the homestead exemption protected $50,000 of the home's equity from creditors.