Understanding Homestead Exemption

Available Homestead Exemptions

The following table describes each of the different homestead exemptions and the deducted amount from the assessed value of the property.  The Understanding Homestead Exemption Handout (pdf) can be downloaded.

Any of these codes may also have an "F" which signifies the homestead freeze (S1F, L1F). The homestead freeze is the exemption equal to any increase of assessed value above the assessed value on the date the homestead exemption was approved. It applies to the value of the home and surrounding land (not exceeding 5 acres but does not apply to pools, barns, detached garages, shops and other structures.
Code Description Deduction from Assessed Value Assessed Value is Reduced for...                                              
S1 State Homestead Deduction - Default
$2,000.00
 County and School Taxes
S3 State Double Homestead for Age 62-64 and Net Income Maximum $10,000.00
$2,000.00
$10,000.00
 County Taxes
School Taxes
L1 Senior Exemption for Age 65+
$10,000.00
 County and School Taxes
$2,000.00 State
$8,000.00 Local
L4 Senior Exemption for Age 65+ and Net Income Maximum of $10,000.00
$12,000.00
$18,000.00
 County Taxes
School Taxes
S5 Veteran 100% Disabled Age Less than 65.  Includes Un-remarried Surviving Spouse. (Proof required; amount changes annually.)
$100,896
 2021 Value from the State
L5 Veteran 100% Disabled Age 65+. Includes Un-remarried Surviving Spouse. (Proof required; amount changes annually.)
$100,896
 2021 Value from the State Plus
$8,000.00 Local

How Does the Homestead Freeze Reduce My Tax Bill?

Millage Rates are set by each taxing district jurisdiction in late summer. All notices of assessment use the previous year mill rate, by law because this year's Mill Rates have not been established. This example uses district 81 Mill Rate from 2020.
Example                                                                                                                                                
Assume Homestead Exemption  

$499,182.00
 Fair Market Value (100%)
Approved in 2006 with Fair Market Value.    $604,000.00 Fair Market Value (100%)
Fair Market Value Currently Difference $104,818.00 Fair Market Value (100%)
       
Homestead Freeze Exemption Multiply by 0.40
$41,927.20
 Assessed Value (40%)
       
Compute Tax with Homestead Freeze      
Assume Code of S1F Exemption
$2,000.00
  
  Freeze Exemption
$41,927.20
  
  Total Exemptions
$43,927.20
  
       
Current Fair Market Value of Homestead   $604,000.00  
Current Assessed Value of Homestead Multiply by 40%
$241,600.00
  
Net Assessed Value Equals Assessed Value Minus Exemptions Assessed Value
$241,600.00
  
  Exemptions
$43,927.20
  
  Net Assessed Value
$197,672.80
  
Taxes Equal Net Assessed Valuation Multiplied by the Millage Rate      
  Net Assessed Value
$197,672.80
  
  Millage Rate
0.020605
 1 Mill = 1/10 of $0.01
Current Property Tax  
$4,073.05
  
Homestead Freeze Tax Savings Freeze Exemption
$41,927.20
  
  Millage Rate
0.020605
  
  Savings
$863.91