What Does Property Tax Exempt Code H3 Mean?

by Amanda McMullen ; Updated July 27, 2017
When you receive your yearly property tax statement, you may wonder what the exemption codes represent.

If you own a home, you will typically receive a property tax statement each year. This statement shows the appraised value of your property, tax rate and applicable exemptions. However, some taxing units may list your exemptions using codes instead of explicitly stating the name of the exemption you claimed.

About Homestead Exemptions

Taxing authorities calculate your property taxes based on the value of your taxable property. Homestead exemptions allow you to exempt a portion of your property's appraised value from taxation. Most states allow a homeowner to claim a standard homestead exemption if he has a mortgage on his home, but the specific amount of the exemption varies by state. Homestead exemption amounts may also differ by county or municipality.

Exemption Codes

Exemption codes also differ by state and may even vary within a state. Some taxing units offer only a few homestead exemptions, while others may offer 10 or more exemptions. Along with the standard exemption for homeowners with mortgages, taxing authorities may offer exemptions for disabled homeowners, elderly homeowners and disabled veterans. Taxing authorities may also impose gross income limitations on some of the exemptions they offer.

Exemption H3

Property tax exemption code H3 can refer to different exemptions. For example, in Alabama, property tax exemption H3 indicates that the homeowner is totally and permanently disabled, or over age 65 with a federally taxable income that doesn't exceed $7,500. In Georgia, however, property tax exemption code H3 indicates that the homeowner is disabled or over age 62, with a Georgia taxable income that does not exceed $10,000.

Considerations

Most states require you to apply for property tax exemptions in person and present any supporting documentation, such as a copy of your mortgage or driver's license. You must typically reapply or transfer your exemptions in person if you refinance your mortgage or purchase a new home. In most cases, you can claim multiple property tax exemptions for your home if you qualify for all of them.

About the Author

Amanda McMullen is a freelancer who has been writing professionally since 2010. She holds a bachelor's degree in mathematics and statistics and a second bachelor's degree in integrated mathematics education.

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