What is the purpose of a homestead exemption?

The purpose of a homestead exemption is to lower property tax on a primary domicile. This exemption is designed to provide tax relief to homeowners by allowing them to exempt a certain amount of the value of their primary residence from property taxes. This makes home ownership more affordable by decreasing the overall tax burden, thereby incentivizing home ownership within the community. Additionally, the homestead exemption can protect a portion of the home’s value from creditors in certain situations, but its primary function in the context of property tax is to reduce the taxable value of residential properties specifically designated as a primary residence. This exemption reflects the intention of local governments to promote stability within neighborhoods by making housing more accessible to residents.