What Is Homestead Tax Credit?

Owning a home can carry many expenses, which can prevent those in lower-income brackets, the elderly and disabled from purchasing one. Expenses include not only the mortgage payment, but also insurance and property taxes.

Definition

The Homestead Tax Credit is offered in some states and reduces the amount owed for property taxes to those who meet certain qualifications.

Income

The Homestead Tax Credit is made available to those who are in the low-to-moderate income level. Each state has different income requirements that must be met to be eligible.

Age

Many states have age requirements to be eligible for the tax credit.

Disabled

Those with a permanent disability, regardless of age, may also be eligible for the credit.

Renter

Some states extend the credit to those who rent their home or apartment, not just those who own a home.

Tip

The Homestead Tax Credit is only available on an individual's primary residence.

Not all states offer the Homestead Tax Credit, and each state has different eligibility requirements that must be met.

References

• Real Estate Glossary: Homestead Credit
• North Dakota: Homestead Tax Credit--Senior Citizens and Disabled People