Q. It’s tax season. What’s a Homestead Exemption and should I get one?
We all look for ways to save when we can, don’t we? Personally, I like saving money wherever I can.
But there’s a surprising number of people who haven’t yet taken advantage of a simple Homestead Exemption. In the town of York, a Homestead Exemption lowers the assessed value of your primary residence by $25,000.
All you have to do to qualify for this exemption is to have lived in the home as your primary residence for the past 12 months, and you can’t already have a Homestead Exemption on another home.
For example, if you own a house assessed at $400,000 by the town of York, it will be assessed at $375,000 instead, saving you over $200 off of your tax bill. Over the years, the amount saved will amount to thousands of dollars.
And it’s a “one and done” kind of thing - apply once and you’re done. The lower value will be assessed every year as long as you still own the home and use it as your primary residence.
Apply by April 1, 2022 if you want to start saving money on the 2022/2023 tax bills! Click Here for a Maine Homestead Exemption Application, print an application out at home from your town’s website, or pick one up at your local town assessor’s office. Only one owner needs to sign the application for a Homestead Exemption (if there’s more than one owner).
Since many people are now installing solar panels and other renewable energy equipment, it’s worth mentioning that some of those improvements - which would typically be assessed for taxation - are also exempt under the Renewable Energy Investment Exemption. But you’ve got to apply to get that one too, so hop to it! :)
And as always, consult your tax advisor before making any changes.
Troy Williams has been the #1 agent in York county since 2012. His work ethic and unmatched expertise and knowledge of the local real estate market keep him consistently one of the top realtors in Maine. His office can be reached at 1-207-351-8188.
"Ask Troy" and other articles focused on New Hampshire and Maine real estate and area information are featured monthly in the Williams Realty Partners newsletter Connect; if you'd like to receive the newsletter please email jenna@williamsrealtypartners.