The Basics of the Homestead Exemption

If you’re a homeowner, you may have heard the term “homestead exemption” mentioned in relation to your property taxes or legal protections. But what exactly is a homestead exemption, and how does it benefit you as a homeowner? Let’s dive into the details and explore how it operates, with a special focus on Georgia’s homestead exemption rules.

What is the homestead exemption?

A family’s home, used as a primary residence, is called a homestead, and this exemption refers to legal protections against creditors and the minimization of property taxes. Policies range a great deal across states and counties,

but the following requirements are fairly consistent across state lines:

• The Home: In most states, a homestead must be the primary residence (i.e. not a vacation home). You also must occupy the residence on a specific date. Some states also require a minimum period of residency before the home can be considered a homestead.
• The Homeowner: You as the homeowner must meet certain requirements. Naturally, you must be the owner or a trust beneficiary of the home. But other requirements vary by state. For example, some states limit the homestead exemption amount according to income, age (i.e. whether or not they are a senior), their military service (i.e. whether they were a veteran), or their disability.

How does the homestead exemption work?

This is a type of tax exemption applied to the assessed value of the home itself, usually at a fixed discount. For example, if your home is worth $250,000 and you apply an exemption of $50,000, you would only need to pay property taxes on the home as if it were worth $200,000. The homestead exemption amount, rates, and limits vary wildly from state to state.

In addition to the tax savings, this exemption also protects from a potential forced sale of the property in many situations. For instance, if a spouse dies, the living spouse may be protected from creditors for a certain amount of equity. Some states also have situations to protect a homeowner from bankruptcy.

What is the homestead exemption policy in Georgia?

For Georgians, the rules for homestead exemptions include the following:

• As of January 1^st, you must own the property.
• The home must be your legal residence for all purposes.
• You must occupy it.
• If you’ve claimed a homestead exemption for any other property, including in another state, you can’t get a homestead exemption in Georgia.

Homestead exemptions in Atlanta depend on your county. Look up homestead exemptions in Fulton county, Cobb county, and Decatur county for more details. For instance, in Fulton County, those over the age of 65 who lives in the city of Atlanta may qualify for a $10,000 exemption. In Decatur, it depends on a variety of factors.

When are homestead exemptions due?

In Georgia, the application deadline depends on the county.

• Cobby County: Typically April 1^st.
• Fulton County: Typically April 1^st.
• Decatur County: Typically April 1^st.

If you have more questions on the Georgia homestead exemption, feel free to connect with our experts today!