Homestead Market Value Exclusion

The exclusion reduces the taxable market value of qualifying homestead properties. By decreasing the taxable market value, net property taxes are also decreased.

For homesteads valued at $76,000 or less, the exclusion is 40% of the market value, creating a maximum exclusion of $30,400. The exclusion is reduced as property values increase, and phases out for homesteads valued at $413,800 or more. 

Properties that are partial homesteads (for example, when only one of two owners lives there) will have a reduced exclusion.

For taxes payable in 2025:

For homesteads valued at $95,000 or less, the exclusion is 40% of the market value, creating a maximum exclusion of $38,000. The exclusion is reduced as property values increase and phases out for homesteads valued at $517,200 or more. 

Properties that are partial homesteads (for example, when only one of two owners lives there) will have a reduced exclusion.

Example 1: A residential homestead with an estimated market value of $280,000

Since this property has a value over $95,000 we need to determine the amount of value over $95,000. Next, we multiply that amount by 9% to determine the reduction from the maximum of $38,000. This example has an exclusion amount of $21,350.

Homestead Market Value Exclusion Calculation:

1. Initial/Maximum Exclusion: $95,000 x 40% = $38,000
2. Value over $95,000: $280,000 – $95,000 = $185,000 
3. Benefit Reduction Amount: $185,000 x 9% = $16,650 
4. Final Exclusion Amount: $38,000 – $16,650 = $21,350
5. Taxable Market Value: $280,000 - $21,350 = $258,650

As you can see, this reduces the property’s taxable value from $280,000 to $258,650.

Example 2: Residential homestead with an estimated market value of $350,000.

The value of the property has increased therefore the exclusion amount for this property will be reduced.

Since this property has a value over $95,000, we need to determine the amount of value over $95,000. Next, we multiply that amount by 9% to determine the reduction from the maximum of $38,000. This example has an exclusion amount of $15,050.

Homestead Market Value Exclusion Calculation

1. Initial/Maximum Exclusion: $95,000 x 40% = $38,000
2. Value over $95,000: $350,000 – $95,000 = $255,000 
3. Benefit Reduction Amount: $255,000 x 9% = $22,950  
4. Final Exclusion Amount: $38,000 – $22,950 = $15,050
5. Taxable Market Value: $350,000 - $15,050 = $334,950

As you can see, this reduces the property’s taxable value from $350,000 to $334,950.