Homestead Credit & Standard Deduction

Homestead Credit & Standard Deduction

Eligibility Requirements
A homestead is: 
  • A person's primary place of residence and not a secondary home such as a vacation home 
  • A residence a person either pays the property tax for or a residence a person is buying under a contract that states he or she will pay the property taxes for
  • A dwelling and the land (not exceeding one acre) that surrounds it
  • A person who resides in the property must also have their name on the deed or title

A person regardless of age who either owns or is buying a homestead is entitled to a credit against his or her property taxes. The amount of the credit is determined by multiplying the homestead percentage of credit (1998 through 2001 10%, 2002 and thereafter 4%) by the amount a person owes in property taxes on the homestead portion of their property tax bill. In addition, a person who qualifies for a homestead credit also receives a standard deduction of one-half of the assessed value of the real property or mobile home. The deduction is subtracted from the homestead assessed value before the taxes are calculated. 


Auditor's Office

Staci Eglen (812) 358-6161 email