Back again now are with our special program, “The $1000 Show!” All about you, your house – and your money!
Now remember that old saying, it’s not what you make, it’s what you keep?
Well, that what we’re focusing on all day – making sure YOU keep every penny you can, by showing you the secrets of saving money around your house.
And right now – a really big one. Calling it a secret might be a bit of a stretch, but you’d be surprised how many homeowners across America, have never heard of the homestead exemption.
It’s true! Not many people know about it. But across America – 46 states offer the Homestead exemption – in one form or another – to its residents who live in the house they own.
The bottom line is, the homestead exemption gives you a discount on your property taxes. I know…it’s surprising! But the fact is, it’s true.
Here’s how it works.
Once you own a home, you apply for the homestead exemption, either in person at the tax office, or, you can usually get the form online and mail it in.
Now, you can only get it if you own the home that you live in. Right? So you have to be an owner-occupant. BUt once the tax office determines you are the owner of the home, and it’s your primary residence – you’re all set. And they’ll grant you the exemption.
Now before you get your hopes up, let’s talk about the fact that every state and every tax office across America, handles the homestead exemption differently. In some places, it’s only for veterans. In others, it’s for senior citizens. And also, in some cases, the exemption is really small — like they’ll knock five or $10,000 off the assessed value of your house and then tax you on the rest of it. As in, you don’t save a LOT of money when you take it.
But in other places? The tax office could grant you an enormous discount, which could save you thousands and thousands of dollars on your property taxes.
They work in two ways. In some states, they reduce the taxable value of your home by a set amount. For instance, if your assessed value is $500,000, and the homestead exemption is $50,000….you pay property taxes on 450. OK?
But in some states, it’s a percentage. So if your home is worth that same $500,000 and the homestead exemption is 10%, your taxable value again, drops to $450,000.
Either way, it saves you money….in many states, a lot of money.
Why do states do it?
Well, the homestead exemption helps homeowners achieve long-term, sustainable homeownership, by reducing the cost of owning a home. The hope is, that will help more people get into, and stay in – a home of their own.It’s a way to save real money on your property taxes. But again, you have to apply for it in most cases, and it only applies to the home you own, and live in.
It’s worth checking out the rules in your state to see what applies to you.
Because in a way, it’s free money.You could be writing a smaller check every year, or paying a smaller amount of taxes in escrow every month – thanks to the homestead exemption.