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 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.
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.
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.
- Cullman County Alabama: Real Property
- Washington Law Help. "Property Tax Exemptions for Seniors and People With Disabilities." Accessed Aug. 5, 2020.
- Institute on Taxation and Economic Policy. "How Property Taxes Work." Accessed Aug. 5, 2020.
- Clark County Washington Assessor. "Property Tax Exemption—Senior Citizens/Disabled Persons." Accessed Aug. 3, 2020.
- City of Manchester, New Hampshire. "Elderly Exemption." Accessed Aug. 3, 2020.
- New York State Department of Health. "Medicaid Excess Income ("Spenddown" or "Surplus Income") Program." Accessed Aug. 10, 2020.
- New York State Department of Taxation and Finance. "Senior Citizens Exemption." Accessed Aug. 5, 2020.
- Municipality of Anchorage. "Exemptions." Accessed Aug. 5, 2020.
- Harris County Appraisal District. "Appraisals, Exemptions, and Property Taxes for Older or Disabled Homeowners." Page 2. Accessed Aug. 3, 2020.
- City and County of Honolulu. "Exemption Information." Accessed Aug. 5, 2020.
- City of Boston. "Filing for a Property Tax Exemption." Accessed Aug. 3, 2020.
- New York State Assembly. "How the STAR Program Can Lower Your Property Taxes." Accessed Aug. 10, 2020.
- Tax-Rates.org. "Property Taxes By State." Accessed Aug. 5, 2020.
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.