A homestead exemption is a legal provision that reduces the taxable value of a primary residence, which in turn lowers the amount of property tax a homeowner owes. The exemption can vary widely depending on the state or local government, but the core principle remains the same: it allows homeowners to reduce the amount of their home’s value that is subject to property taxes. Provided the home was owned by the homeowner and was their legal residence as of January 1 of the taxable year, a homeowner is entitled to a homestead exemption. The deadline to submit application is April 1 in the state of Georgia.
Types of Homestead Exemptions
- General Homestead Exemption: The home of each resident of Georgia that is occupied and used as a primary residence by the owner may be granted a $2,000 exemption from county and school taxes, except for school taxes levied by municipalities, and except to pay interest on, and to retire bonded indebtedness. The $2,000 is deducted from the 40% assessed value of the homestead.
- Senior Exemption:
- Individuals 65 years of age or over may claim a $4,000 exemption from all county ad valorem taxes if the income of that individual and their spouse does not exceed $10,000 for the prior year.
- Individuals 62 years of age or over that are residents of an independent or county school district may claim an additional exemption from all ad valorem taxes for educational purposes and to retire school bond indebtedness if the income of that individual and their spouse does not exceed $10,000 for the prior year.
- Disabled Veterans & Surviving Spouses: Any qualifying disabled veteran who is a citizen and resident of Georgia is granted an exemption of $32,500.00 or the maximum amount which may be granted to a disabled veteran. This exemption is extended to the unremarried surviving spouse or minor children as long as they continue to occupy the home as a residence.
Homestead exemptions help protect homeowners from rapid increases in property taxes. This offers homeowners more financial stability, particularly in fast-growing markets like Metro Atlanta. If you’re unsure about whether you qualify for a homestead exemption, or if you’d like to know how much you could save, it’s a good idea to contact your local tax assessor’s office for more information and guidance.
