What is a homestead exemption?

A homestead exemption is a form of tax relief offered by the state of South Dakota to provide property tax relief to qualifying homeowners. This exemption reduces the taxable value of an individual’s primary residence by a certain amount, typically a percentage of the home’s total value. This exemption is meant to reduce the overall tax burden on homeowners throughout the state of South Dakota. To qualify for a homestead exemption in South Dakota, applicants must be a permanent resident of the state and must reside in the property for which they are applying for an exemption. Additionally, the property must be the primary residence of the applicant, and the applicant must be the owner or lessee of the property. Other qualifications, such as age and income, may also apply depending on the county in which the applicant is applying. Once approved, the homestead exemption reduces the assessed value of the property for tax purposes, and thus, reduces the amount of taxes due. Depending on the county, this exemption could potentially save the homeowner thousands of dollars in taxes each year. However, once homestead exemption is granted, it must be renewed annually in order to remain in effect.

Related FAQs

What are the different types of property tax exemptions?
How are new property taxes calculated?
How much can I deduct for property taxes on my income taxes?
How do I calculate my property taxes?
How do I find out what my local property tax rates are?
How can I calculate my property tax rate?
How do I calculate the property tax increase on a new assessment?
How do property tax exemptions work?
How can I dispute my property tax assessment?
What is the difference between a property tax lien and a tax deed?

What is a homestead exemption?

Related FAQs

Related Blog Posts