Homestead Exemption/real estate tax relief

[msefren]

We filed for Homestead Exemption this year (waiting to see if we qualify for partial real estate tax relief). We are trying to keep our taxable income low to qualify for at least a partial homestead exemption. Medical expenses are deductible so Nebraskans with higher incomes and high health care costs may qualify. Your house value compared to others in your county is a qualifying factor as well.

Are any of you dealing or have dealt with this issue?

Thanks!

 

[RE2Boys]

Homestead Exemptions rules vary considerably across the country. Here in PA, it has nothing to do with your income, rather you must be the owner and reside in the residence you claim the exemption on.

This is different from the PA Property Tax Rebate program where income is the primary determinant along with age.

 

[Sue J]

I was looking forward to reaching 65 and being eligible for Ohio's Homestead Exemption. It exempts the first $25,000 of property value from being taxed. That would be about 1/5 to 1/6 of our property tax, which is great!

Then, a few years ago the state changed the law so that you have to be age 65 and have taxable income of $31,500 (for 2016) or less to be eligible. DHs pension is more than that so we will not benefit from any of this. DARN!

 

[msefren]

Thank you for your responses.

 

[Bamaman]

We're very fortunate that Alabama property taxes are ridiculously low. County Property Taxes on a $200K residence being lived in are just over $600.

But my wife and I have the ultimate exemption--Social Security Disability on the wife. We have no county or city property taxes.

A gentleman built a 28,000 square foot house with 1,500 feet on the Tennessee River and his taxes are $15,000. The taxes on his $25 million superyacht are $0 as there are no ad valorem taxes on boats in this state.

And our politicians still complain about the state being broke. Surrounding states' property taxes are 4x that of ours, and they're still far cheaper than taxes "up north."

 

[msefren]

In Nebraska, it seems they can only tax cows and people since we have essentialy nothing else to tax and believe me, they tax us to death. Real estate tax on our home,
($245,377) is nearly 6k.

In addition, we are taxed on SS and pension income.

 

[Helena]

.

Where I live in Texas we have both a homestead and an over 65 exemption for property taxes.

A disabled veteran neighbor pays nothing in property taxes.

No state tax at all on income.

.

 

[brucethebroker]

Indiana has a homestead deduction also not attached to income. Total tax for residential owner occ is capped at 1%. There is also an exemption of the first 45K valuation of your home.
Valuations are realistic, and as a result, property taxes are very reasonable.

We also have a winter home in FL. Their exemptions are completely different (but I don't follow the details, since we aren't residents.)

 

[Al18]

Enjoy it if you got it. In NJ, I used to get back a few hundred dollars per year as a home owner. NJ homestead rebate has been greatly scaled back. The average NJ real estate tax bill is $8161/year. You must be at least 65 years old AND have less than $70,000 income per year to qualify for the senior freeze program, where taxes are held to what you paid when you were 65.

 

[COcheesehead]

In Nebraska, it seems they can only tax cows and people since we have essentialy nothing else to tax and believe me, they tax us to death. Real estate tax on our home,
($245,377) is nearly 6k.

In addition, we are taxed on SS and pension income.

I used to live in Wisconsin, one of the higher tax states and that sounds about what I used to pay.
Now in Colorado my house value is about 3x that and I pay about half what you pay.

 

[ripper1]

We're very fortunate that Alabama property taxes are ridiculously low. County Property Taxes on a $200K residence being lived in are just over $600.

But my wife and I have the ultimate exemption--Social Security Disability on the wife. We have no county or city property taxes.

A gentleman built a 28,000 square foot house with 1,500 feet on the Tennessee River and his taxes are $15,000. The taxes on his $25 million superyacht are $0 as there are no ad valorem taxes on boats in this state.

And our politicians still complain about the state being broke. Surrounding states' property taxes are 4x that of ours, and they're still far cheaper than taxes "up north."

Illinois politicians complain the state is broke also. But then they go and lower the income tax rate. Go figure

 

[jkern]

In CA the Homeowners Exemption is $7k off assessed value. That saves about $85 per year and it never gets adjusted for inflation. Yippie, lunch for two with a little left over.

 

[Montecfo]

.

Where I live in Texas we have both a homestead and an over 65 exemption for property taxes.

A disabled veteran neighbor pays nothing in property taxes.

No state tax at all on income.

.

Helena,
I hear you. But for practical purposes isn't that relief from homestead and over 65 fairly modest? My review of property taxes in Texas reveals they border on confiscatory (2 pct plus).

Curious.

Montecfo

 

[Walt34]

In WV I qualified for the homestead exemption when I turned 65, the only advantage to doing so. It exempts the first $20k of valuation from taxation so not a huge difference.

 

[meierlde]

Helena,
I hear you. But for practical purposes isn't that relief from homestead and over 65 fairly modest? My review of property taxes in Texas reveals they border on confiscatory (2 pct plus).

Curious.

Montecfo

The big relief is that once one reaches 65 the property taxes are then frozen. It used to be just school and when I inherited my house from my mother the school taxes jumped from 1200 to 4400. (after 16 years of a freeze) now how valuable it becomes depends on housing prices of course.