The homestead exemption is a powerful legal and financial benefit that helps protect homeowners from excessive property taxes and certain creditor claims. Originally introduced in Texas in 1839, the homestead exemption is now available in all 50 U.S. states—though the rules and benefits vary significantly depending on where you live. Most states will require you to file for homestead exemption with the appropriate municipality, typically the county, while a handful have automatic exemptions. What they all have in common, is the exemptions are for your primary residence only.
If you’re considering buying a home in North Carolina, California, or any other state where my company is licensed, understanding how homestead protections work can be a major asset in your homeownership journey.
Key of the Homestead Exemption
The homestead exemption provides two core advantages for homeowners:
1. Lower Property Taxes
Many states allow homeowners to reduce the assessed value of their primary residence, which lowers annual property taxes. The amount varies depending on state and county, and some groups—like seniors, disabled individuals, and veterans—may qualify for additional savings.
2. Protection From Unsecured Creditors
In some states, the homestead exemption also protects a portion—or even all—of your home equity from unsecured creditors, such as credit cards, personal loans, or medical bills. This protection can be crucial during financial hardship or bankruptcy.
Do All States Offer the Same Protection?
Not at all. Some states provide unlimited equity protection, while others cap it at a specific dollar figure (e.g., $30,000, $150,000, or more). Similarly, property tax exemptions may be automatic or require filing, depending on the jurisdiction. The exact benefits, filing requirements, and eligibility criteria differ widely by state—and sometimes even by county.
Who Typically Qualifies for Additional Exemptions?
Homeowners may be eligible for increased protection or additional tax savings if they are:
- Veterans (especially with service-connected disabilities)
- Seniors aged 65 or older
- Permanently disabled
- Surviving spouses of veterans or first responders
These added exemptions can lead to larger property tax reductions or full exemptions in certain areas.
| State | Equity Protection | Property Tax Exemption | Veteran Exemption Details |
|---|---|---|---|
| Alabama | $15,000 (single) / $30,000 (married) | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Alaska | $72,900 | Varies by municipality | Additional exemptions may apply for disabled veterans |
| Arizona | $150,000 | Available for seniors and disabled individuals | Up to $4,188 exemption for totally and permanently disabled veterans |
| Arkansas | Unlimited | $350 annual credit for homesteads | Full exemption for 100% disabled veterans |
| California | $349,720 – $699,426 | $7,000 exemption for primary residence | Up to $241,627 exemption for 100% disabled veterans |
| Colorado | $75,000 – $250,000 | 50% exemption up to $200,000 for seniors and disabled individuals | 50% exemption of first $200,000 for 100% disabled veterans |
| Connecticut | $75,000 | Varies by municipality | Full exemption for 100% disabled veterans |
| Delaware | $125,000 | Varies by municipality | Full exemption for 100% disabled veterans |
| Florida | Unlimited | $50,000 exemption for primary residence; additional exemptions for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Georgia | $21,500 (single) / $43,000 (married) | Available for seniors and disabled individuals | Up to $98,492 exemption for 100% disabled veterans |
| Hawaii | $20,000 | Varies by county | Full exemption for 100% disabled veterans |
| Idaho | $100,000 | Available for seniors and disabled individuals | $1,500 reduction for 100% disabled veterans |
| Illinois | $15,000 | Available for seniors and disabled individuals | Up to $70,000 exemption for 100% disabled veterans |
| Indiana | $19,300 (single) / $38,600 (married) | Available for seniors and disabled individuals | Up to $24,960 exemption for 100% disabled veterans |
| Iowa | Unlimited | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Kansas | Unlimited | Available for seniors and disabled individuals | Homestead refund for 50%+ disabled veterans |
| Kentucky | $46,350 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Louisiana | $35,000 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Maine | $47,500 | Available for seniors and disabled individuals | Up to $50,000 exemption for 100% disabled veterans |
| Maryland | $22,975 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Massachusetts | $500,000 | Available for seniors and disabled individuals | Up to $1,500 exemption for 100% disabled veterans |
| Michigan | $30,000 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Minnesota | $390,000 | Available for seniors and disabled individuals | Up to $300,000 exemption for 100% disabled veterans |
| Mississippi | $75,000 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Missouri | $15,000 | Available for seniors and disabled individuals | Up to $1,100 credit for 100% disabled veterans |
| Montana | $250,000 | Available for seniors and disabled individuals | Exemption based on income and marital status for 100% disabled veterans |
| Nebraska | $60,000 | Available for seniors and disabled individuals | Exemption based on income and marital status for 100% disabled veterans |
| Nevada | $605,000 | Available for seniors and disabled individuals | Up to $30,800 exemption for 100% disabled veterans |
| New Hampshire | $100,000 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| New Jersey | None | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| New Mexico | $60,000 (single) / $120,000 (married) | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| New York | $82,775 – $165,550 | STAR program for primary residence; additional exemptions for seniors and disabled individuals | Up to $5,000 exemption for 100% disabled veterans |
| North Carolina | $35,000 | Available for seniors and disabled individuals | $45,000 exemption for 100% disabled veterans |
| North Dakota | $100,000 | Available for seniors and disabled individuals | Up to $120,000 exemption for 100% disabled veterans |
| Ohio | $136,925 | Available for seniors and disabled individuals | $50,000 exemption for 100% disabled veterans |
| Oklahoma | Unlimited | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Oregon | $40,000 (single) / $50,000 (joint) | Available for seniors and disabled individuals | Up to $29,753 exemption for 100% disabled veterans |
| Pennsylvania | None | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Rhode Island | $500,000 | Available for seniors and disabled individuals | Exemption varies by county for 100% disabled veterans |
| South Carolina | $58,225 (single) / $116,450 (married) | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| South Dakota | Unlimited | Available for seniors and disabled individuals | Up to $150,000 exemption for 100% disabled veterans |
| Tennessee | $5,000 (single) / $7,500 (married) | Available for seniors and disabled individuals | Up to $175,000 exemption for 100% disabled veterans |
| Texas | Unlimited | $100,000 exemption for primary residence; additional exemptions for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Utah | $20,000 (single) / $40,000 (married) | Available for seniors and disabled individuals | Up to $275,699 exemption for 100% disabled veterans |
| Vermont | $125,000 (single) / $250,000 (married) | Available for seniors and disabled individuals | $10,000 exemption for 50%+ disabled veterans |
| Virginia | $5,000 (single) / $10,000 (married) | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Washington | $125,000 | Available for seniors and disabled individuals | Exemption based on income for 80%+ disabled veterans |
| West Virginia | $25,000 | Available for seniors and disabled individuals | Credit available for 90-100% disabled veterans |
| Wisconsin | $75,000 | Available for seniors and disabled individuals | Full exemption for 100% disabled veterans |
| Wyoming | $20,000 | Available for seniors and disabled individuals | $3,000 exemption for 100% disabled veterans |
Important Disclaimer
This information is based on the most current data available as of 2025 and is intended for general informational purposes only. Homestead exemption rules, protection amounts, and tax savings vary by state, locality, and personal eligibility—and are subject to change. Please consult your local tax assessor’s office, county recorder, or a qualified legal or tax professional to verify how these exemptions apply to your specific situation.
Want to Take Advantage of Homestead Protections?
If you’re planning to purchase a home in North Carolina, California, or any state where I or my company is licensed, I’d love to help you get pre-approved and explore loan options that position you to benefit from homestead protections and other financial programs.
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