Here’s some information about how homestead exemptions work.
If you bought a property in 2021 and have lived in it for one day or more, you need to file for your 2022 homestead exemption by March 1. Property taxes are paid in arrears, so you’re always paying for the year before.
“This will provide some nice tax relief for homeowners.”
Once you’ve moved from one property to another, you qualify for home portability, which allows you to transfer some of the tax credits that you’ve gained over the years from paying property taxes. It will provide some nice tax relief for you.
The amount is determined by the difference between the market value and the assessed value of your property. Let’s say the assessed value is $400,000, and the market value is $250,000. You subtract that, and that leaves you with a 37.5% portability benefit. If you’re upsizing your property, on the other hand, and the new property costs $600,000, subtract that $150,000, and you’re left with $450,000 assessed value. You subtract the $50,000 homestead tax exemption on that, and your final taxable value is $400,000.
As you can probably see, this is a complicated topic. If you have any questions for me about homestead exemptions, tax-related tips, or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
