What Is a Homestead Exemption?
"Homestead exemption" has two common meanings. A property tax homestead exemption lowers the taxable value of a home that the owner uses as a primary residence; each state sets the amount, who qualifies, and how and when to apply. A creditor or bankruptcy homestead exemption protects some or all of the value of a person's home from creditors; federal bankruptcy law has its own homestead exemption, and states have their own versions.
What the law says
- Example (Florida, property tax): when someone owns property and makes it his or her permanent residence (or the permanent residence of a dependent), the homestead exemption may reduce the property's taxable value. Florida Department of Revenue, Property Tax Exemptions and Additional Benefits
- Florida's constitution exempts a qualifying homestead from taxation up to $25,000 of assessed value, plus assessed value above $50,000 and up to $75,000 for all levies other than school district levies; that second $25,000 amount is adjusted each January 1 for inflation when the Consumer Price Index rises. Florida Constitution, Art. VII, Sec. 6 (Florida Senate)
- In Florida, homestead exemption applications and documentation are submitted to the property appraiser in the county where the property is located, and the exemption qualifies the home for the Save Our Homes assessment limitation. Florida Department of Revenue, Property Tax Exemptions and Additional Benefits
- Example (Texas, property tax): Texas Tax Code Section 11.13(b) requires school districts to provide a $140,000 exemption on a residence homestead, and Section 11.13(c) requires an additional $60,000 school district exemption for homeowners age 65 or older or disabled. Texas Comptroller of Public Accounts, Property Tax Exemptions
- In Texas, the owner must have an ownership interest in the property and use it as a principal residence; applications (Form 50-114) are filed with the appraisal district in the county where the property is located, and the general filing deadline is before May 1. Texas Comptroller of Public Accounts, Property Tax Exemptions
- In bankruptcy, federal law (11 U.S.C. 522(d)(1)) lets a debtor exempt an interest in real or personal property that the debtor or a dependent uses as a residence, up to a dollar limit; that limit was raised to $31,575 effective April 1, 2025, under the periodic adjustment in 11 U.S.C. 104. 11 U.S.C. 522 (Legal Information Institute, Cornell Law School)
- Under 11 U.S.C. 522(b), a bankruptcy debtor generally chooses either the federal exemption list or the exemptions available under state law and other federal law, and a state may prohibit its residents from using the federal list. 11 U.S.C. 522 (Legal Information Institute, Cornell Law School)
- Which state's exemptions apply in bankruptcy generally depends on where the debtor was domiciled for the 730 days before filing, with a different look-back rule if the debtor did not live in one state for that whole period. 11 U.S.C. 522 (Legal Information Institute, Cornell Law School)
- Example (Florida, creditor protection): Florida's constitution exempts a homestead owned by a natural person from forced sale by court process, up to 160 contiguous acres outside a municipality or one-half acre within a municipality, except for property taxes and assessments, debts for the purchase, improvement, or repair of the property, and certain labor performed on it. Florida Constitution, Art. X, Sec. 4 (Florida Senate)
FAQ
Is a homestead exemption automatic?
In the state examples here, you apply. In Texas, for example, the application goes to the county appraisal district, generally before May 1; in Florida, it goes to the county property appraiser.
Do I have to live in the home to get the property tax exemption?
In Texas and Florida, yes: Texas requires that the owner use it as a principal residence, and Florida requires that it be the owner's (or a dependent's) permanent residence.
Are there extra property tax exemptions for seniors?
Some states offer them. In Texas, school districts must provide an additional $60,000 residence homestead exemption for owners age 65 or older or disabled.
How much home equity is protected in bankruptcy?
It depends on whether the federal or state exemptions apply. The federal homestead exemption limit is $31,575 for cases filed on or after April 1, 2025; state amounts differ, and federal law lets a state prohibit use of the federal list.
Does Florida's homestead protection stop a mortgage lender from foreclosing?
Florida's constitutional protection from forced sale does not cover debts contracted for the purchase, improvement, or repair of the homestead, or taxes and assessments on it.
Related
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.