The three flavors
Dollar exemptions subtract a fixed amount from assessed value before the rate applies. Texas’s $100,000 general homestead exemption on school taxes is the biggest example — on a typical school levy, that’s over $1,000 a year in real savings.
Rate reductions exempt your home from specific levies instead. Michigan’s Principal Residence Exemption shields your primary home from up to 18 mills of school operating tax — not a dollar figure off value, but a chunk of the rate itself.
Assessment caps limit how fast your taxable value can rise. Florida’s Save Our Homes caps annual increases at 3%; Texas homesteads are capped at 10%. In a hot market, the cap quietly becomes the most valuable protection you have — and it’s why long-time owners often pay far less than a new buyer of an identical house next door.
Senior, veteran and disability add-ons
Most states layer extra relief on top: additional exemptions at 65+, tax ceilings that freeze school taxes, and substantial or total exemptions for disabled veterans. If you or a family member crossed one of these thresholds recently, re-check eligibility — these are chronically under-claimed.
One home only
Homestead status applies to your primary residence — one property, where you actually live. Claiming it on a second home or rental is fraud in most states and triggers back taxes plus penalties. When you move, the exemption doesn’t follow automatically: file again at the new address (and note Florida’s portability rules for carrying Save Our Homes savings).
Your county’s default exemption is pre-loaded in our county calculators — adjust it if you qualify for senior or veteran add-ons.