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Homestead Exemptions and Credits: An Examination of an Approach for Tax Expenditure Budgeting Open Access

Homestead exemption programs, incorporating exemptions and credits, are by no means the only programs state and local governments use to provide property tax relief to residents. They are, however, the only programs directed at all homeowners who claim the property as their primary residence . Unlike the other residential relief programs, homestead exemptions have no further eligibility criteria. While all states provide some sort of residential relief, as shown in Table 1, only 28 states and the District of Columbia have adopted a homestead exemption program. In each case, however, these states (and D.C.) have also adopted residential relief programs for targeted populations, such as being a senior citizen or a veteran, or having limited income.

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