How do homestead exemptions work?

Homestead exemptions are laws that provide a tax break for homeowners by exempting some of their home’s value from property tax. In California, these rules are outlined in the state’s property tax laws. The amount of the exemption is based on the assessed value of the home or the purchase price, whichever is lower. In California, homeowners who are primary residents of their home qualify for a $7,000 reduction in their assessed property value. This exemption is applied to the home’s taxable value. If the assessed value of the home is $300,000, for example, the taxable value would be reduced to $293,000. This can result in a substantial savings in property taxes. The homestead exemption in California also applies to seniors who are over the age of 55. They receive an additional $67,000 off of the assessed property value, bringing the total exemption to $74,000. This makes it easier for seniors to remain in their homes despite rising property taxes. All homeowners in California can take advantage of the homestead exemption. In order to qualify, you must be the primary resident of the home and you must apply for the exemption with your local county assessor. Once approved, the exemption can reduce your property taxes significantly.

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How do homestead exemptions work?

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