- 1). Find the homestead exemption for your state. The availability and amount of a homestead exemption differs according to the state. For example, the homestead exemption in Florida is up to $50,000 while the homestead tax credit in the District of Columbia is $67,500 (as of July, 2010).
- 2). Figure out the assessed value for your home. Your local tax office or county records department will have the assessed value. While the assessed value is based on market price, your local government will decide what your home's actual market value is (possibly based on a physical inspection of the property).
- 3). Deduct the exemption from the assessed value. For example, if the assessed value for your home is $100,000 and you are entitled to a homestead property tax exemption of $50,000, then your Homestead property's taxable value is:
$100,000 - $50,000 = $50,000.
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