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What Is a Homestead Exemption?

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There's great diversity from state to state regarding homestead exemption benefits.

Homestead Exemption Rules for the Following States

Here is a summary of homestead exemption rules for five southeastern states. You can check your state, city, or county department of revenue for more details and for filing deadlines.


Georgia

The state of Georgia5 offers several homestead exemption benefits, but the county in which you live might have more generous exemptions than the basic exemptions offered by the state. For example, a number of Georgia counties offer an exemption that freezes the valuation of your property at the year in which you bought the home, so even if taxes rise due to home values rising, your taxes will be based on your base year’s valuation or limited to a certain percentage increase each year. The following are the basic state exemptions offered in Georgia:

  • Georgia homeowners may be granted a $2,000 exemption from county and school taxes. The $2,000 is deducted from the 40% tax assessed value of the home.
  • Homeowners 65 and older may claim a $4,000 exemption from all county taxes if their income doesn’t exceed $10,000, excluding retirement and disability income.
  • Homeowners 62 and older may claim an additional exemption from school taxes if their income doesn’t exceed $10,000, excluding retirement and disability income.
  • Disabled veterans and their surviving spouses and surviving spouses of peace officers or firefighters can be granted additional homestead exemptions.

You file your homestead exemption with your county’s tax office. Here are some rules for filing:

  • You need to have owned and lived in the home as of January 1 of the taxable year.
  • The deadline for filing for the homestead exemption is April 1. If you file after that, you’ll need to wait until the next year to be granted the exemption.
  • Once you’re approved, your homestead exemption automatically renews.

Florida

Florida residents6 may be eligible to receive a homestead exemption of $50,000 from tax liability of their home's tax assessed value. Additional exemptions are in place for certain service members, seniors, veterans, and disabled persons.

Florida has one of the most generous homestead exemptions7 in the U.S. regarding bankruptcy. It protects the entire equity Florida homeowners have amassed in the home. This protection applies to homeowners who use the home as their primary residence and have lived in the home for about three-and-a-half years. It protects a homestead of one-half acre in a city or town or 160 acres outside a municipality.

Florida also has a state constitutional amendment called Save Our Homes8, which caps increases in the assessed value of the home to 3% per year or the amount of the consumer price index for the year, whichever is lower. Note that a change in ownership triggers a new reassessment, meaning that if you buy a home in Florida, you can’t count on the property taxes of the prior owner to be the same as what you’ll pay.

You file your homestead exemption with your county property appraiser. Here are some rules for filing:

  • You need to be on the title to the home by January 1 of the taxable year.
  • The deadline for filing for the homestead exemption is March 1 of the year you’re applying for.
  • Once you’re approved, your homestead exemption automatically renews.

Alabama

In Alabama9, a homestead is defined as the dwelling and the land not exceeding 160 acres for a single family. If you’re under 65, you can deduct up to $4,000 in assessed value. Additional exemptions exist if you’re 65 and older, have a permanent disability, or are blind.

You file your homestead exemption with your local county tax assessor’s office. Here are some rules for filing:

  • You must take ownership of the home before October 1 of the year you’re applying.
  • The deadline for filing is December 31.
  • You file for the homestead exemption only once.

Tennessee

Tennessee offers a homestead exemption10 that protects some of your home equity if you file for bankruptcy. The limit is $5,000 for an individual and $7,500 for spouses who file a joint bankruptcy. The limits are higher if you’re 62 or older.

Tennessee also offers property tax relief11 for low-income or disabled homeowners or for veterans or their spouses and a tax freeze11 when a homeowner reaches age 65.


South Carolina

The homestead exemption in South Carolina12 applies to owners of a primary residence who are 65 or older, totally or permanently disabled, or blind. The benefit is an exemption of taxes on the first $50,000 of your residence.

If you file for bankruptcy13 in South Carolina, your homestead exemption protects $67,100 of your homestead or $134,200 if you file with your spouse.

You apply through the county auditor’s office and need to do so only once.

Important disclosure information

This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information. Diversification does not ensure against loss.

  1. “Homestead Exemptions by State and Territory,” Asset Protection Planners, accessed January 28, 2025. Back
  2. “Three Things You Should Know About the Homestead Exemption in Georgia,” The Dolhancyk Law Firm. Accessed January 24, 2025. Back
  3. “Benefits of Homestead Exemption: A Guide for Realtors,” National Association of Realtors, accessed January 25, 2025. Back
  4. “What is the homestead exemption?,” Policy Genius, published December 6, 2021. Accessed January 25, 2025. Back
  5. “Property Tax Homestead Exemptions,” Georgia Department of Revenue, accessed January 28, 2025. Back
  6. “Property Tax Information for First-Time Florida Homebuyers,” accessed January 28, 2025. Back
  7. “Will The Florida Homestead Exemption Protect My Home If I File For Chapter 7 Bankruptcy?,” Law Offices of Carol M. Galloway, Florida Certified Civil Court Mediator, accessed January 28, 2025. Back
  8. “Homestead Exemption Frequently Asked Questions,” Martin County Property Appraiser, accessed January 28, 2025. Back
  9. “Homestead Exemptions,” Alabama Department of Revenue, accessed January 28, 2025. Back
  10. Cara O’Neill, “The Tennessee Homestead Exemption,” NOLO, published October 4, 2023. Accessed January 28, 2025. Back
  11. “Property Tax Relief,” Tennessee Comptroller of the Treasury, accessed January 28, 2025. Back
  12. “What Is the Homestead Exemption Benefit?,” South Carolina Department of Revenue, accessed January 28, 2025. Back
  13. Cara O’Neill, “South Carolina Bankruptcy Exemptions,” The Bankruptcy Site, accessed January 28, 2025. Back