A homestead credit generally reduces or caps the increase in taxes on the home you live in. You usually have to apply, you may need to reapply when you move and the rules vary by locality. Check with your local assessor.
What does a homestead credit do?
Many jurisdictions limit how fast the taxable value of a primary residence can rise, or give a flat credit to owner-occupants. The goal is to make property taxes more predictable.
How do you apply?
There is typically a short form filed with the assessor, sometimes with proof of residency. Deadlines apply, and a missed deadline can mean waiting a year.
When you buy
A new owner often has to apply again. Ask whether the previous owner's credit transfers, and budget for taxes at the full assessment until yours takes effect.
Related topics
See comparing local property taxes and historic tax credits.
Frequently asked questions
Do investors qualify?
Usually only for owner-occupied primary residences.
Does it lower my bill every year?
It typically limits growth rather than guaranteeing a reduction.
Sources
- Your local assessor, recorder or municipal office (confirm current rules)
- A licensed attorney, tax professional or lender for your situation
- The local MLS and your Northfield Realty agent for current market conditions
Talk with a Northfield agent
Whether you are buying, selling or just exploring, we are happy to answer questions. No pressure, just good advice.
This article is general information, not legal, tax or financial advice. Programs, rates and regulations change; please confirm details with a licensed professional. Northfield Realty is committed to the Fair Housing Act and equal opportunity in housing. Back to all articles.