Homestead Exemption

In Financial Planning, Housing, Tax Planning by adminLeave a Comment

by CASEY TINIUS / CFP®

If you are nearing or have already reached age 65, how would you like to save $860 a year just by filling out an application and providing proof of your age?

Yes it really is that easy if you take advantage of the Homestead Exemption. This exemption allows a reduction in the assessed value of your personal residence of $39,300, which means a sizeable savings on your annual property taxes. Below are some key facts regarding the Homestead Exemption.

  • You or your spouse must be at least age 65 in the year you apply.
  • The Exemption can reduce the assessed value of your home by $39,300.
    • No this will not hurt you if you go to sell your home!
  • Proof of age is required by a valid Birth Certificate, Driver’s License or Passport.
  • You must own and occupy the residence, which would rule out any rental properties.
  • Applications can be submitted through the mail or by going to the PVA office.
    • One advantage of going to the PVA to get your application processed is that you may receive a refund authorization for previous years. Meaning if you apply at age 67 you could receive a partial refund for taxes paid in previous years.
  • Bowling Green City Tax Rate – 1.389%
    • Homestead Savings – $545.87
  • Warren County Tax Rate – 0.8%
    • Homestead Savings – $314.40

The Homestead Exemption is a quick and easy way to save on the taxes you pay. Apply by the end of the year and you may be eligible to get a break on 2020 taxes that have already been paid.

Feel free to reach out to our team with any questions.

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