Rob Hartley

Founder, AppealDesk · February 13, 2026

Property Tax Exemptions Most Homeowners Miss

Updated February 2026 · 14 min read

1. Homestead Exemption

The homestead exemption is the single most valuable tax break available to homeowners, and it's available in some form in nearly every state. It reduces your property's assessed value by a fixed dollar amount, directly lowering your tax bill. The only requirement in most states is that the property must be your primary residence.

Despite being widely available, millions of eligible homeowners never file. In some counties, unclaimed homestead exemptions represent tens of millions of dollars in overpaid taxes each year. The application is typically a single-page form filed once with your county assessor's office. Once approved, it remains in effect as long as you live in the home.

The value of the exemption varies dramatically by state. According to the Lincoln Institute of Land Policy's Significant Features of the Property Tax database, here are some examples:

If you own your home and live in it, check whether you've filed for your homestead exemption. If you haven't, this is the single highest-return action you can take today. It costs nothing, takes 15 minutes, and the savings last as long as you own the home.

2. Senior/Over-65 Exemption

According to data from the U.S. Census Bureau and state tax agencies, at least 39 states plus Washington, D.C. offer additional property tax relief specifically for seniors. These programs go by different names — senior exemption, over-65 exemption, elderly exemption — but they all work the same way: once you reach a qualifying age (usually 62–65), you get an extra reduction in your taxable value on top of any homestead exemption you already have.

Some senior exemptions have no income requirement at all. Others are income-based, with benefits that increase as income decreases. A few states, like Texas, also freeze your school district tax payment at the amount due the year you turn 65 — so even if your home value rises, your school taxes stay the same forever.

The AARP estimates that only about 8% of eligible seniors actually apply for property tax relief they're legally entitled to. That means millions of dollars in exemptions go unclaimed every year. If you or a family member is approaching 62, start researching your state's program now so you can apply the moment you're eligible.

We've written a comprehensive state-by-state breakdown in our complete guide to senior property tax exemptions, including exact income limits, age thresholds, and how to apply in every state.

3. Disabled Veteran Exemption

Veterans with a service-connected disability are eligible for some of the most generous property tax exemptions in the country. In many states, veterans with a 100% disability rating from the VA receive a complete exemption from property taxes — meaning they pay nothing at all. This benefit often extends to a surviving spouse.

Even veterans with partial disability ratings (often 10% or higher) may qualify for significant reductions. Texas, for example, provides a sliding scale: a veteran with a 70–100% disability rating gets at least a $12,000 exemption, and a 100% disabled veteran gets a full exemption on their homestead. Florida offers a full exemption for veterans with a total and permanent service-connected disability. Virginia, Pennsylvania, and Michigan have similar programs.

The application process typically requires your VA disability rating letter, proof of homestead residency, and a one-page application to your county assessor. If you're a veteran and you haven't checked whether you qualify, contact your county assessor today. If you're helping a veteran family member with their finances, this should be at the top of your list.

One important detail: the VA disability rating is a federal determination, but the property tax exemption is administered at the state and county level. You need to apply separately with your local assessor — your VA status alone does not trigger the exemption automatically.

4. Disability Exemption (Non-Veteran)

You don't need to be a veteran to qualify for a disability-related property tax exemption. Most states offer some form of relief for homeowners who are permanently disabled, though the programs vary significantly in generosity and eligibility requirements.

Typical qualifications include receiving Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), or having a physician certify a total and permanent disability. Some states use a functional definition (unable to engage in substantial gainful activity), while others accept the Social Security Administration's determination directly.

The benefit amount ranges from modest ($1,000–$5,000 in assessed value reduction) to substantial (full exemption in a few states for totally disabled homeowners meeting income limits). In Texas, the disability exemption mirrors the over-65 exemption: $10,000 off school district taxes plus a school tax ceiling freeze. In Illinois, homeowners with disabilities get a $2,000 reduction in equalized assessed value.

If you or your spouse has a permanent disability and you own your home, contact your county assessor to ask about available programs. The application usually requires a doctor's statement or proof of SSDI/SSI benefits. Like most exemptions, this one must be applied for — it is never automatic.

5. Agricultural/Farm Use Exemption

If you own land that's used for farming, ranching, timber production, or other agricultural purposes, you may be eligible for what's commonly called an “ag-use” or agricultural exemption. Technically, this is usually an alternative valuation rather than a true exemption: your land is appraised based on its productive agricultural value rather than its market value.

The savings can be dramatic. A 50-acre parcel on the outskirts of a growing metro area might have a market value of $500,000 but an agricultural-use value of just $15,000. At a 2% tax rate, that's the difference between a $10,000 tax bill and a $300 one. This is one of the largest potential savings of any exemption type.

Requirements vary by state but typically include a minimum acreage (often 5–10 acres), evidence of active agricultural use (crop production, livestock, timber), and sometimes a minimum income from farming activities. Texas requires the land to have been used for agriculture for at least five of the past seven years. Georgia requires a minimum of 10 acres for bona fide conservation-use valuation.

One important caution: if you stop agricultural use or convert the land to residential or commercial development, most states impose a “rollback” tax — you may owe the difference between the ag-use taxes and the market-value taxes for the previous three to five years. This can be a substantial bill, so plan carefully before changing your land use.

6. Renewable Energy Exemption

If you've installed solar panels, a residential wind turbine, a geothermal system, or other renewable energy equipment, you may be paying more in property taxes than you need to. Many states have enacted laws that exclude the value of renewable energy installations from your property's assessed value.

The logic is straightforward: solar panels can add $15,000–$30,000 to a home's market value, which could increase your annual property taxes by $200–$500 or more depending on your local tax rate. A renewable energy exemption prevents this increase, so you get the full benefit of the investment without the tax penalty.

As of 2026, at least 36 states offer some form of solar property tax exemption. Among the most generous: Arizona excludes 100% of added value from solar, New Jersey exempts all renewable energy systems from property taxes, and Massachusetts exempts solar for 20 years. Texas exempts the appraised value of solar and wind energy devices installed on residential property.

This exemption is easy to overlook. Many homeowners install solar panels and never realize their assessment was increased as a result. If you've gone solar in the last several years, check your assessed value to see if the system was included. If it was, and your state offers an exemption, file immediately to remove it.

7. Historic Property Exemption

If your home is listed on the National Register of Historic Places, located in a designated historic district, or recognized under a state or local historic preservation program, you may be eligible for a property tax freeze, reduction, or credit. These programs exist because governments want to incentivize the preservation and maintenance of historically significant properties.

The benefits vary widely. Some states freeze the assessed value of a historic property for a set period (often 10–15 years) after a qualifying renovation. Others reduce the assessed value by a fixed percentage. A few offer direct tax credits for preservation-related expenses. Georgia, for example, freezes the assessment of a rehabilitated historic property for eight years. Maryland offers a 10-year property tax credit for approved historic restorations.

There are usually strings attached. Most programs require that any renovations follow specific preservation guidelines set by the Secretary of the Interior or a state historic preservation office. You typically cannot make major alterations to the historic character of the building. But if you own a historic home and are maintaining or restoring it in keeping with its character, the tax savings can help offset the often-higher maintenance costs these properties demand.

Contact your state historic preservation office or your county assessor to find out if your property qualifies and what programs are available in your area.

8. Low-Income and Circuit Breaker Exemptions

“Circuit breaker” programs are among the most underused property tax relief programs in the country. The concept is simple: when your property tax bill exceeds a certain percentage of your household income, the state steps in to cap or reduce the excess. The name comes from the idea that the program “breaks the circuit” when the tax burden becomes too high relative to your ability to pay.

According to the Tax Foundation, at least 30 states and Washington, D.C. offer some form of circuit breaker program. The specifics vary: some set the threshold at 3–5% of household income, others at 6–10%. Benefits are typically delivered as a credit on your state income tax return, a direct rebate check, or a reduction applied to your property tax bill.

For example, Vermont's circuit breaker reduces property taxes to no more than a sliding percentage of income, with a maximum benefit tied to the statewide average tax on median home value. Michigan's Homestead Property Tax Credit provides up to $1,600 for homeowners whose property taxes exceed 3.2% of household income. Connecticut's program targets elderly and disabled homeowners with income under $46,400.

If you're a retiree, a single-income household, or anyone whose income has declined while property values have risen, look into your state's circuit breaker program. Many homeowners on fixed incomes qualify but have never heard of these programs because they're not well publicized. Your county assessor or state department of revenue can tell you whether a circuit breaker is available where you live.

Don't Forget to Appeal Too

Exemptions and appeals are two different strategies, and the smartest homeowners use both. An exemption gives you a fixed reduction — it lowers your taxable value by the same amount regardless of whether your assessment is accurate. But if your property is also overassessed, you're still paying taxes on a value that's higher than it should be.

Consider this example: your county assesses your home at $350,000, but comparable sales suggest it's actually worth $300,000. You have a $50,000 homestead exemption. Without an appeal, you're taxed on $300,000 ($350K minus $50K). With a successful appeal and the exemption, you're taxed on $250,000 ($300K minus $50K). At a 1.5% tax rate, that's $750 per year in additional savings you'd miss by relying on the exemption alone.

Our complete guide to appealing property taxes walks you through the entire process step by step. And if you want to compare your options for getting professional help with an appeal, see our comparison of the best property tax appeal services.

The bottom line: claim every exemption you're entitled to, then check your assessment. If the county's number is too high, appeal it. The two strategies together deliver maximum savings. AppealDesk offers $49 flat-fee property tax appeal evidence packets covering all 50 states to handle the appeal side.

Frequently Asked Questions

Exemptions are just one way to reduce your property tax bill. For a complete overview of non-appeal strategies — including error corrections, classification changes, and payment timing — see our guide on how to lower property taxes without filing an appeal. If you're not eligible for exemptions, you may still be overassessed. Use our free savings calculator to check in seconds.