Homestead Exemption Calculator
A homestead exemption reduces the taxable assessed value of your primary residence, lowering your property tax bill. The formula is straightforward: subtract the exemption amount from your assessed value to get the taxable value, then multiply by your combined property tax rate. Enter your assessed value, the total exemption you qualify for, and your combined tax rate (expressed as dollars per $100 of value) to calculate your tax bill with and without the exemption, and your annual savings.
Homestead exemption formula
Taxable Value = max(0, Assessed Value - Exemption Amount)
Tax with Exemption = Taxable Value x (Rate / 100)
Tax without Exemption = Assessed Value x (Rate / 100)
Annual Savings = Tax without Exemption - Tax with Exemption
The savings equal the exemption amount multiplied by the tax rate. For a $100,000 exemption at a 2.50% rate, the savings are $2,500 per year.
Common homestead exemption amounts by state
Exemption amounts vary widely. Texas mandates a $100,000 school district exemption for homesteads. Florida offers a $25,000 exemption to all homesteads plus an additional $25,000 for values between $50,000 and $75,000. California's homeowner's exemption is $7,000. Georgia offers $2,000. Always verify your state and county's current exemption with the official county assessor before filing.
Homestead exemption FAQ
What is a homestead exemption?
A homestead exemption reduces the assessed value of your primary residence for property tax purposes. For example, if your home is assessed at $300,000 and your state offers a $50,000 exemption, you are taxed on only $250,000. The exemption lowers your tax bill without changing the market value of your property.
Who qualifies for a homestead exemption?
Generally, you must own the property and use it as your primary residence. Some states require you to have lived there on January 1 of the tax year. Additional exemptions are often available for seniors (over 65), disabled individuals, and veterans.
How do I apply for a homestead exemption?
You must file an application with your county assessor, appraisal district, or property tax office. Most jurisdictions require a one-time application; the exemption then renews automatically each year. Some states require annual renewal. Deadlines vary by state.
How much does a homestead exemption save?
Savings depend on the exemption amount and your property tax rate. If your exemption removes $100,000 of assessed value and your combined rate is 2%, you save $2,000 per year. This calculator shows your exact savings based on your inputs.
Does a homestead exemption apply to all local taxes?
Not always. Some jurisdictions apply the exemption only to the school district portion of property taxes. Others apply it to all local taxes. In Texas, for example, the mandatory $100,000 school exemption applies to school district taxes; each city and county offers its own optional exemption separately.
Official sources
- Texas Comptroller: Property Tax Exemptions.
- Florida Department of Revenue: Homestead Exemptions.
- California Board of Equalization: Homeowner's Exemption.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.