What is a homestead tax exemption?

A homestead tax exemption is a legal exemption which reduces the amount of taxes owed on a primary residence in Pennsylvania. The exemption is based on the assessed value of the home, and allows taxpayers to take a deduction on the taxes they owe on their home each year. Generally, homeowners may apply for a homestead tax exemption if their home is their primary residence. In Pennsylvania, the exemption applies to county, school district, and municipal real estate taxes. In Pennsylvania, there are two types of homestead tax exemptions available: a 50% tax reduction or a 100% tax reduction. For the 50% homestead tax exemption, the assessed value of the home is reduced by half before determining the amount of taxes owed on the residence. For the 100% homestead tax exemption, no taxes are owed on the assessed value of the residence. To be eligible for a homestead tax exemption in Pennsylvania, homeowners must meet certain requirements. Eligibility varies by county, so it is important to check with the local county assessor’s office for specific requirements in your area. Generally, homeowners must have resided in their primary residence for at least a year and must be a US citizen or be legally authorized to work in the US. Overall, a homestead tax exemption helps taxpayers in Pennsylvania by reducing the amount of taxes they owe on their home each year. It is an important way for homeowners to save money on their primary residence.

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What is a homestead tax exemption?

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