Homestead Exemption 2022 Update

Did you hear about the newest Homestead Exemption update?! This might benefit you as a homeowner!

On January 1, 2022, a new law went into effect modifying the homestead exemption. In the past, you needed to wait until the year after you bought your home to apply for your homestead. Now, if you buy a home that doesn’t already have a homestead exemption, you can file right away and get a prorated homestead exemption for the rest of the year. Homes that wouldn’t have a homestead exemption are new construction homes, homes that were investment properties, or just someone who never put a homestead on their home. If the previous owner has a homestead in place, you must wait until the next year to file your own because the existing one remains in place for the remainder of the current year. One key point to understand is that while you get the reduced assessments in the same tax year, the 10% cap does not kick in the next year, but the following. So if you buy a home in 2022 that doesn’t have a homestead exemption and put one on right away, the 10% cap doesn’t take effect until 2024. I’m Craig Smyser with 1835 Realty.