What is a homestead tax exemption?

A homestead tax exemption is a tax reduction available to homeowners in the state of Washington. It reduces the amount of property tax a homeowner has to pay on their primary residence. This exemption applies to all parts of the property tax calculation, including the assessment, rate and tax amount. To qualify for the homestead tax exemption in Washington, a homeowner must live in the home full time and own the home at the beginning of the year in which they are filing for the exemption. The exemption covers the first $125,000 of assessed value of the home, up to a certain maximum. The homestead tax exemption is part of the larger Washington property tax system, which is made up of ad valorem taxes and special assessments. Ad valorem taxes are levied against the value of property, while special assessments are fees or taxes imposed on a specific property or service. The homestead tax exemption is just one way homeowners can reduce their property taxes. Other tax relief programs include deferment of taxes for those aged 61 or older, disabled or low-income, and military veterans. Additionally, local governments may offer tax breaks for certain property improvements, such as replacing a roof or upgrading the plumbing. In general, the homestead tax exemption can help reduce the burden of property taxes for homeowners. It allows them to keep more of their income, allowing them to invest it in other areas or use it to pay other bills.

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